58.1 Apendix - Exhibits 1-3

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 1 of 61
APPENDIX
Exhibit
1: Declaration
of Steve Pigeon
Exhibit 2:Declaration of Daniel B. Pollack Exhibit 3: Declaration of Wesley D. Felix
Exhibit
Wesley D.
Felix (6539)
Amber M. Mettler (11460) SNELL & WILMER r.rp. l5 West South Temple, Suite 1200 Gateway Tower West Salt Lake city, urah 84101 Telephone: 801.257.1900 Facsimile: 801.257.1800 Email : wfelix@swlaw.cor amettler@swlaw.com
A
tto
rney s fo
P I ai nt
iff Ma s t e rJ I e
C o rp o r at i o n
IN THE UNITED STATES DISTRICT COURT

F'OR THE DISTRICT OF UTAH, CENTRAL DIVISION
MASTERFILE CORPORATION, Plaintiff,

vs.
DECLARATION OF STEVE PIGEON

Case No. 2:09-cv-966
MARTIN GALE, d/b/A THE GALE TEAM; LAURIE GALE, IbIATHE GALE TEAM; and GALE SERVICES,P.C., dlblaTHB GALE TEAM,
Defendants.
Honorable Dee Benson
I, Steve Pigeon, declare as follows:

1
I am over the age of I 8 years, a resident of Toronto, Ontario, Canada, and am

set forth herein.
fully competent in all respects to testif, regarding the maffers
2.
I am the President of Masterfrle Corporation ("Masterfile"). I make this
Declaration in support of Masterfile's Motion for Partial Summary Judgment on Damages. I

have personal knowledge of the facts stated herein, and I would
a witness.
testif, to those facts if called as
3.
Masterfrle is a stock photography agency that acquires, organizes, distributes, and
licenses rights-managed and royalty-free images for commercial use in media ranging from print
advertising to websites. Masterfile's images are acquired under exclusive contract from photographers and illustrators who are paid a royalty every time an image is licensed. Masterfile acquired legal title to the twenty-seven (27) rights-managed images (the "Images") that the Defendants used without authorization on their website located at www.galeteam.com (the
"Website").
4.
An important component of Masterfile's business is the concept of rights-
managed images. Through developed business practices and technical infrastructure, Masterfile is able to track its rights-managed images and how they are being used around the
world, This
allows Masterfile to offer exclusive rights to clients without delay and without risking conflict
between competing users.
5.
Rights-managed images are often licensed to clients who require high quality
images for publications, reports, advertising, Internet websites, and the
like. When considering
licensing a rights-managed image, clients often ask Masterfile to provide a history of prior uses of the subject rights-managed image, and for similar images from the same production shoot.
6.
The ability to be told where, when and how a rights-managed image has
previously been used is a primary reason that clients choose to use rights-managed images.
Rights-managed images are necessarily more expensive to license than other images offered by
Masterfile, and the control of their use is of critical importance to Masterfile's business,
7.
When Masterfile's rights-managed images are used without authorization it harms
Masterfile in several important ways, including the following examples: (a) the unauthorized
usage can cause Masterfrle embarrassment and damage its reputation
if such usage collides with
an authorized use, because Masterfile may be expected to provide complete usage histories to
any client at any time; (b) it may prevent Masterfile from licensing an exclusive use of that image after the infringing usage comes to light (infringing uses are recorded in our usage history
system as soon as we learn of them and they remain in our system even if we do not collect
payment for the infringing use). Exclusive uses are licensed at a considerable premium over non-exclusive uses; and (c) if an image has previously been licensed exclusively to another party, the infringing use could cause a claim for damages against Masterfile by the exclusive
licensee.
8.
Therefore, the potential damage to Masterfile due to an unauthorized use of its
rights-managed images extends beyond the loss of frnancial compensation it would otherwise
have gained through the licensing of the images; it includes damage to Masterfile's reputation as
a reliable visual content provider.
9.
On March 26,2009, Masterfile sent the Defendants a notice of copyright
infringement after discovering that the Defendants were using the Images without authorization
on the Website, A true and correct copy of Masterftle's March 26,2009letter to the Defendants
(with attachments) is attached hereto as Exhibit A'
10.
Pursuant to Masterfile's Terms and Conditions governing the unauthorized use
of
Masterf,rle's images, Masterfile included a request for retroactive license fees that was three (3) times the regular license fees for the Defendants' use of the Images on the Website that
Masterfile was aware of at that time, which was that the Defendants had used twenty-three (23) of the Images for one year and four (4) of the Images for four years.
I
l.
In response to Masterfile's discovery requests in this action, the Defendants
indicated that they started using the 2T Images on the Website in April 2004. Masterfile is unaware of the exact date that the Images were removed from the Website, but it occurred after
Masterfle notified the Defendants of the claim in March 2009 and before Masterfile frled its Complaint on October 28,2009. Accordingly, the applicable usage period for calculating Masterfile's license fees for the Images is five (5) years. A true and correct copy of Defendants'
Responses to Masterfile's Second Set of Discovery Requests is attached hereto as Exhibit B (see
Defendants' response to Interrogatory No. 3).
12.
Masterfile determines its pricing for rights-managed images based on thirty years
of experience in licensing images to commercial clients around the world. Prices are adjusted from time-to-time according to market conditions and the competitive landscape for comparable
products and licensing models.
13.
The license fees for using a rights-managed image are not determined by the
image itselt but instead are based on how the image is used and for how long, For example, the
same fee applies for any rights-managed image that is used on the home page of a website for
one year worldwide, irrespective of the content or size of the image.
14.
It is Masterfile's policy to calculate retroactive license fees based on the regular
fees in place at the time of issuing its claim, which in this case would be in March 2009. I have
calculated the regular license fees which Masterfile would have charged for the Defendants' use of the Images on the Website at the time that Masterfrle issued its claim to the Defendants in
March 2009, had that usage been authorized for use on different pages of the Website for a
period of five (5) years and they are as follows:
Masterllle Image No.

700-0000823 I 700-00018138
Description
House for Sale Vy'oman/Monitors Business Meeting Couple Painting 'Woman
\ebsite Usage
Secondary page Secondary page Secondary page $2,010 $2,010 $2,010 $3,510 $2,010 $2,010 $2,010 $2,010 $2,010 $2,010 $2,010 $2,010 $2,010 $2,010 $2,010 $2,010 $3,510 $2,010 $2,010 $2,010 $2,010 $2,010 $2,010
Rate
700-00024739
700-00039068 700-00045593 700-00045601 700-0005 1387 700-000525 10 700-000s5377 700-00055948
Multiple secondary pages

Secondary page Secondary page Secondary page Secondary page Secondary page Secondary page Secondary page Secondary page Secondary page Secondary page Secondary page Secondary page
in Kitchen
Couple/House Family/House Woman Using Laptop
Dollar Sign
'Woman on Phone
700-00057029 700-00062640
700-00063094 700-000633
House/Flower Bushes
'Wire Globe / Cursor
Couple Unpacking
l6
Table and Chairs Farm and Field

House and Garden
700-00067230
700-00068371 700-00069120 700-00069698 700-0007 I 900
Interior of Home
Multiple secondary pages

Secondary page Secondary page Secondary page Secondary page Secondary page Secondary page
Lightbulbs
Trash Can
700-00072298 700-00075424
700-00076323 700-000764
1
Broom Sweeping Dust

Flowers Hand & Lightbulb Dalmatian puppy
700-00077855
Couple Working
Seoondary page Secondary page Secondary page
$2,010 $2,010 $2,010 $2,010 $57,270
700-0007923t
700-00080396 700-00083909
Living Room
Gerbera Daisy Basset Hound Puppy
Secondary page
Total:
15. 16.
Accordingly, the total regular license fee that Masterfile \ould have charged the
Defendants for the same use of the Images would have been $57,270.
declae under penalty of perjury that the foregoing statements are true and
correct to the best of my knowledge, information, and belief.
DATED this lst day of April,2013,
Exhibit A
Tntrrfle
March 26,2009
Masterllle CorDoratlon 3 concordo Gto, th Floor Toronlo, Ontaro, Canada M3C aN7
41 0 929 3000 tel
ma$tedle,oom
800 387 9010 loll fre 419 S2S 2104 lsx
VIA FEDERAL EXPRESS

Marty Gale GALE TEAM 1533 Murray Holladay Road Salt Lake City, Utah
usA, 84117
Dear Mr. Gale:
Re:
Notice of Copyright lnfringement
- www.teamgale.com of licensing rights-managed

images
Masterfile Corporation ("Masterfi[e") is in the business

reproduction by clients around the world,
for
commercial
It has come to Masterfile's attention that you have published twenty-seven (27) of Masterfile's images on tho above noted website. A copy of the images and a printout of the respective pages on your website are attached to this letter for your reference.
The images are represented exclusively by Masterfile and registered in the Copyrght Office of the United States Library of Congress. You may verify Masteffile's ownership by visiting www.masterfile.com and entering the respective image code in tho soarch engine. Masterfile can find no reference to these images having been licensed for reproduction on your website. The usage above directly violates Masterfile's and the artist's exclusive rights to reproduce, adapt, dsplay, distribute, and/or create derivative works. Be advised that any entity that violates these exclusive rights of the copyright owner is an infringer of the copyright and is thus liable, regardless of prior knowledge of the unauthorized usage. Also note, the Copyright Act provides for individual liability for all those assooiated with the infringement as well as corporate liability.
Rather than jnitiate a legal action for copyright infringement, Masterfile is proposing, on a without prejudice basis,
the following settlement: Masterfile is wllling to arrange for a retroactive Ifcense in accordance with Masterfile's terms and conditions at www.masterfile.com, provided that you: (a) cease and desist from any and all uses of the lmages; and (b) pay the retroactive license fee noted in the enclosed claim within ten (10) days. Please note that you must return the enclosed stamped claim along with your payment in order for Masterflle to conclude this matter. lf you do not comply, Masterfile will initiate a lawsuit for copyright infringement without furthor notice to you.
Subject to your payment of the retroactive licensing fee, you may inquire about contlnued uoe of our images for future promotional purposes. Please contact me immedlately to dlscuss arranging a llcense in this capaclty.
Masterfile treats copyright infringement as a serious matter. As such, Masterfile makes every etfort to ensure its intellectual property is protected and it pursues any possible cases of improper use, Masterfile is hopeful that this matter can be resolved quickly and amicably. Contact received by the due date wilt be regarded as a gesture of
ma,6tr2fif
good intent. Please note that nothing in this notice should e construed as a waiver of any of Masterfile's rights, remedies or protections under law,
The information on this notice of copyright infringement is accurate and under the panalty of perjury, the
undersigned is authorized to act on behalf of Masterfile with respect to this matter, lf you have any questions, kindly contact me without delay, Yours truly,
ffiffiKY
Lisa Dempsey
Copyright Compliance Officer lde mosev@masterf ile.com LD/tg

Encl.
page? o 2
MASTERFILE CORPORATION
FREQUENTI.''Y_ AS
KEp
QU
ESTONS
Who ls Mastertile Corporatlon?

Masterfile is a stock lmage agency/library. We acquire, organize, distribute and license lmages for commercial use ln media ranging from print advertising to websltes. Our images are acquired under sxclusive contract from professional photographors and illustrators who are paid a royalty every time an image is licensed. Our clients include advertising agencies, designers, publishers, multimedia producers and corporations throughout the world,
lf I remove the mage(s), ls the matter resolved? No. When a rights-managed image(s) is used without a license, the immediate removal of the image(s) is critical. Removing the image mitigates your liability; however this does not completely resolve the matter. The use of Masterfile's image(s) requires appropriate licensing covering any and all uses. Payment of an applicabte
retroactive license is required to resolve the matter completely,
What if I hlred someone to create my webste? We havo no record that the image(s) was icensed for the noted use. Your use of the image(s), without a valid license from Masterfile, constltutes copyright infringemont, According to the Copyright Act,it does not matter who designed your website or that there was no intention to commit copyright nfringement. You, as the end llser, are liable for the infringement and have a responsibility to pay the appropriate retroactive flcensing fees for use of the image(s). Masterfile will not be contacting the Cgsioner in an attempt to resolve this issue unless he/she contacts Masterfile directly and agrees to take responsibility for the unauthorized use, Masterfile is not privy to the agreement that you may have had with the designer so it is your responsibility to work with the designer if you believe he/she is responsible. What if I purcased the image(s) from a subscrlption service or onlne as parl of a template? Masterfile is the exclusive representative of the image(s) in questlon. This means that the image(s) cannot be licensed by anyone else, According to the Copyright Act, as the enduser, you are ultimately responsible for ensuring that you have obtained the appropriate licensing or rights to use the image(s). Ths means that if you purchase or acquire images from a subscription service or a website that provides templates, you are still liable for copyright infringement if that company did not properly license the image(s) for your use. What if I didn't know thatthe mage(s) had to be lcensed? Your use of the image(s), without a valid license from Masterfile, constitutes copyright infringement, According the Aopyright Act, it does not matter that there was no intention to commit copyright infringement or that you didn't know the image was copyright protected and needed to be licensed. You, as the end user, are liable for the infringement and have a responsibility to pay the appropriate retroactive licensing fees for use of the image(s). Unfofiunately, your lack of knowledge does not excuse or dismiss your unauthorized use, nor does it waive your obligation to pay the amount requested in the claim for copyright infringement. What if I found the image(s) on the internet and there was no copyrlght notlce? Just because an image is displayed on the internet does not mean that it is in the "public domain". The public domain is the field of works in which copyright has expired or where the copyright owner has made a clear declaration that the work is not subject to copyright. The image(s) in question is a rights-managed image(s) represented exclusively by Masterfile, The use of rights-managed images represented by Masterfie requires a license covering each and every use. The fact that there may not have been a copyright notice, depending upon where you found the irnage, does not mean that there is no copyrght protection.
mn/6tnfl
COPY
CLfENT:
Mrty Galo
Maslerllle corporalf on 3 Concorde Gt, 4th Floor Toronto, Ontarlo, Canada MgC 3N7
41
6-S29-3000
mastgrflle.com
800{87-9010 toll frso

416-92B-2'104 fax
flnanoe0masterllle.com
CLAIM No, PMI-405-943

2009 Mar 20
Rop: Legal Compllanco
GALETEAM
1633 Mur6y Holladay Road Ealt Lake Clty, UT
usA,84117
NO REPRODUOTION COMPLIANCE FEE LICENSING TH RETROASTIVE USE OF FIFTEEN (15) IMAGES ON WEBSITE AT WWW,TEAMGALE,COM, FOR GALE TEAM (HEAL
ESTATE), UNTTLAPRTL 9,2009, TO CONSUMERS - WORLD.
FIGHTS GBANTEDI
IIMAGES C.E,F E L ON SITE FOR 4 YEARS, ALL OTHEHS FOR 1 YEAR]
IMAGE CODE 700-00008231 700-00018138
DESCBIPTION a)House for Sale
RELEASE'
NTY
slzE
'lx sec paga
1x sec page
ABST
Douglas E. Walker Ken Davlos MTPA Stock Davld Sohmldt Davld Schmldt Davfd Schmldt
RATE
b)Woman/Monltors c)Couple Palntlng

d)Womn ln Kltchen e)Coupley'House f)Famlly/House g)Womsn Uslng Lplop
Y/N Y/N
US$ US$
2010,00
201 0.00
700-0003s068
700-00045593 700-0(x)45601 700-00051387 70G000525'10 700-00055377 700-00055948 700-o006331 700-00067230 700-00069120 700-00069698 700-0007641 5 700-00079231
mult sec pagos

1x seo pago
1
uss
rJS
8780.00 2010.00 5010.00 5010,00 2010,00 2010.00 2010.00 2010.00 2010.00 8790.00 2010.00 2010.00
201 0.00
x seo pago
lxseo pago
Y/N N/N Y/ht N/N
1x sec page
us$ us$
US$
Masterfllel
J. A, Kraulls
h)DollarSlgn )Woman on Phone

DTable and
lx seo pagg lx sc pag

1x sec pag8 1x sc pags
US$
US$
MTPAStock Gany Black RoyOoms

Kathlo6n Flnlay Soott Tyslck
Chaln
k)Farm and Fleld l)lnterior of Homo m)Llghtbulbs n)Dalmatlan Puppy o)Llvlng Room
N/r
NTY
mult sac pages

1
us$ us$ us$

us$
N/N N/N
x soc pago
1x sao pags 1x soo page
Allson Bamss Martln Allan Davey
us$
US$
NT
40710.00
GENEFALTERMS OF CI-AIM INVOICE
1. Thls ls not a llceneo. No rproducllon rfghts are granted or lmpllsd herein. Flghts to reproduoe an lmago may only be acqulred subject lo the terms of a wrlfien llcanso from Masterllle,
2.
thls Clalm lnvoice is lssued pursuant to a plor lran8acllon bewEn the partles, refor to the 'Terms of Loan" and/or
ln sepamto documents prevlously dellvered to the ollent.
ths 'General Terms and Conditions of lnvoloe/Llcense' eet foilh 3. Thls lnvolce
is due and payable upon
receipt, lnterst of 2% per month wlll ba charged afier 30 days,

in lhe
4. This fnvoice ls subJect to the lews of lho Provlnce of Onlario. Jurisdiction shall be
unlclpallty of Metropolitn Toronto.
mn/6tnfi:l
COPY
)LIENT:
Masterlile Corporullon
3 Ooncorde Gale, 4th Floor
Toronto, Ontario, Canada MsC 3N7
416-929-S000 800-387-901 0 toll free 416-s20-2104 fax
masteflle.com
finanoe@mastellle,com
cLAltvl No, PMI-405-945

2009 Mar 20
Rep: Legal Compllanoe
Marty Gale GALETEAM
f533 Munay Holladay Road Sall Lake Olty, UT
usA,
841 17
\O REPRODUCTION 1GHTg GRANTED:
COMPLIANCE FEE LIOENSINO THE RETROACTIVE USE OF TWELVE (12) TMAGES ON WEBSTTEATWWW,TEAMGALE.COM, FOR GALTEAM (FEAL
ESTATE), UNTTLAPBTL 9,2009, TO OONSUMEFS - WORL,
IMAGES ON SITE FOR 1 YEAB]

IMAGE CODE 700-00024739 700-00057029 700-00062840 700-00083094 700-00068371 700-00071900 700-00072298 700-ooo76424 700-00078323 700-000778s5 700-00080396 700-00083909 DESORIPTION Business Meeting
RLEASE'
SIZE
ABNST
MTPA Stook Dldler Dorval Blll Frymlre Dan Llm Glola H. Ohomloa
RATE
Y/ll
N/l.l
'lx sec page

1 1
US$ US$
2010.00 2010.00 2010.00 2010,00 2010,00 2010.00 2010.00

201 0.00
HousoiFlowar Bushes
Wire Globo/Oursor
x sec page x eeo page
NiN
u8$
US$ US$
Couplo Unpacking
House ond Qarden Trash Can Broom Sweeplng Dust Flowors Hand & Llghtbulb Couple Worklng Gleera Daisy Basset Hound Puppy
YN
NT
N/N
'lx sec pago

1x seo page
1
x sec pago
Tom Golllcott
Jean-Yvos BruEl Gloia H. Chomloa
N/N N/N
N/N
lx sec page
1x sec paga
us$ us$ us$

US$ US$ US$
fx sec page
1x sec psge 1x oEo page 1x soc page
Boden/Ledlngham Andrew lney

Michael Mahovllch Allson Bamss Martln
20'10.00
Y/N
N/N
2010.00 2010.00 2010.00
N^r
us$
Payable Upon Receipt GENEFAL TERMS OF
TOTAL;
US
24120,O0
CIIM
INVOICE
1. Thls
ls not a lloense, No reproducllon rlghts are granted or lmpled heetn. Rlghts to reproduce an lmage may only bo
acquired sub6ct to the terms of a wrlttan lcense frorn Masterflle,
?. lf thls Clalm lnvoice ls lssued pursuant to a prior transactlon botwean the parlfes, rofer to lfte
uTerms of Loan" and/or the "GeneralTrms and Condilions of lnvoicey'Llceneo" set forlh ln sepamte documents provlously dellvgred lo lhe cllent.
l.
l.
This lnvoice is due and payable upon reoelpt. lnterast of 29lo per month wlll be chargod after 30 days, Thls lnvolce ls subJeot to lhe laws of the Province of Ontado, Jurlsdlotlon shall be ln the muncfpallty ol Metropolltan Torcnto.
Transacton Detals
Qeport Data: 440002

Name:
[aurie & Marty Gale

nttp :i/www,team gale. com/
Home Page: Contact Details:
Address
1533 Murray Holladay Road Salt Lake City, UT 84117 Tel: 877-898-9502 Tel: 801-277-3500 Fax: 877-680-9278 Email: marty. gale@remax,net
Country: United States More Data hone #1:

one#2= Fax:
Catalog lmage No. 700-00008231
Screen Gapture
h"ansaction Details
Report ata: 440003

Name
Laurie & Marty Gale http://www.team

g al e. co
m/
Address
1533 Murray Holladay Road Salt Lake City, UT 84117 Tel: 877-898-9502 'lel: 801-277-3500 Fax: 877-680-9278 Email: marty. gale@remax,net
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Report Data: 440005

Name:
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rttp //www,tea mg ale, com/
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Home Page:
Contact Detalls: Address

1533 Murray Holladay Road Salt Lake City, UT 84117 Tel: 877-898-9502 Tel: 8Q1-27 7-3500 Fax: 877-680-9278 Email: marty.gale@remax.net
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Transaction Details
Report Data: 440004

Name: Laurie & Marty Galo
nttp //www, tea m g ale. co m/
:
Home Page: Sontact Details:
Address
1533 Murray Holladay Road Salt Lake City, UT 84117 Tel: 877-898-9502 Tel: 801-277-3500 Fax: 877-680-9278 Email: marty.gale@remax. net
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Transaction. Details
Report Data: 440008

Name: Home Page: Laurie & Marty Gale
http ;www,teamga e, comi
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Contact Details: Address

1533 Murray Holladay Road Salt Lake City, UT 84117 Tel: 877-898-9502 Tel: 801-277-3500 Fax: 877-680-9278 Email : marty.g af e@remax.net
Country: United States More Data:

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Report Data: 440009

Name:
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Report Data: 440017

Name: Home Page:
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rttp ://www, tea
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1533 Murray Holladay Road Salt Lake City, UT 84117 Tel: 877'898-9502 Tel: 801-277-3500 Fax: 877-680-9278 Email; marty.gale@remax, net
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Report Data: 440018

Name: Home Page:
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1533 Munay Hotladay Road Salt Lake City, UT 84117 Tel: 877-898-9502 Tel: 801-277-3500 Fax: 877-680-9278 Email: marty. gale@remax, net
Contact Details:
Country: United States More Data: hone
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Fax:
Catalog lmage No. 700-000525'1 0
Screen Gapture
Transacton Details
Report Data: 440007

Name: Home Page:
laurie & Marty Gale

http ://www.tea m g a e, com/
I
I533 lvlurray Holladay Road

Salt Lake City, UT 84117 Tel: 877-898-9502
Tel:801-277-3500 Fax: 877-680-9278 Email: marty.gale@remax. net Country: United States More Data: one #1:
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Repoft Data: 440010

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1533 Murray Holladay Road Salt Lake City, UT 84117 Tel: 877-898-9502 Tef: 801-277-3500 Fax; 877-680-9278 Email: marty.gale@remax. net
Country: United States More Data: hone #1: Phone #2:

Fax:
Screen Gapture
Transaction Details
Report Data: 440011

Name: Home Page: Laurie & Marty Gale
http //www. te a m g a e, co m/
: I
Contact Detalls; Address

1533 Murray Holtaday Road Salt Lake City, UT 84117 Tel: 877-898-9502 Tel; 801-277-3500 Fax: 877-680-9278 Email : marty. gale@remax,net
Phone #1:
Phone #2:
Fax:
Screen Capture
Transaction Details
Report Data:440020
Name: urie & Marty Gale
rttp ://www.tea m g a le. com/
Address
1533 Murray Holladay Road Salt Lake City, UT 84117 Tel: 877-898-9502 Tel: 801-277-3500 Fax 877-68Q-9278 Email : marty. gale@remax.net
Oountry: United States More Data one #1;
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Detals
Report Data:440012
Name: Laurie & Marty Gale
http www. tea
:
Home Page: Gontact Details:
m g a I e.
com/
Address
1533 Murray Holladay Road Salt Lake City, UT 84117 Tel: 877-898-9502 Tel: 801-277-3500 Fax 877-680-9278 Email: marty.gale@remax.net
Country: United States More Data: one #1: Phone #2:

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Report Data:440024
Name: rie & Gale
/www.tea mgale.com/
Address
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Report Data: 440037

Name:
Laurie & Marty Gale

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Home Page:
com/

1533 Murray Holladay Road Salt Lal<e City, UT 84117 Tel: 877-898-9502 Tel: 801-277-3500 Fax: 877-680-9278 Email: marty,gale@remax.net
Gountry: United States More Data: Phone #1: Phone #2: Fax: Screen Capture
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l'^, Mail: Page POBox727 Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 44 of 61
xBle$$
ffi
tll
tphis, TN 381 94-4643
Telephone: 901 -369-3600
March 30,2009 Dear Customer: The following is the proof-of-detivery fortracking number
8il299194250.
Dellvery lnformatlon:
Status: Delvered Dellvery looation: 1533 MURRAY HOLLADAY
RD
SALT LAKE CITY, UT

84117
Slgned for by: Service type;
S.MORSON
Dellvery date:
Mar27,2009 09:37
Priorty EnveloPe
Shipping lnformatlon:
Trackng number:
864299194250
Ship date: Weight:
Mar 26, 2009
0.5lbs.
Recipient: MARTY GALE GALE TEAM 1533 MURRAY HOLLADAY ROAD SALT LAKE CITY, UT 84117 US
Shlpper: MASTERFILE STOCK IMAGE LIBRARY 3 CONCORDE GATE FL 4TH 3 CONCORDE GATE FL 4TH NORTH YORK, ON M3C3N7 CA
Thank you for choosing FedEx Express. FedEx Worldwide Customer Service 1 .B00.GoFedEx 1,800.463.3339
Exhibit B
Andrew H. Stone (#4921) Andrew G. Deiss (#7184) Billie J. Siddoway (#9710) JONES WALDO HOLBROOK & MoDONOUGH PC 170 South Main Street, Suite 1500 Salt Lake City, UT 84101 Telephone: (801 ) 521-3200 Facsimile: (801) 328-0537
Attorneys
Martin Gale, Laurie Gale and Gale Services, P'C. IN THE TINITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH, CENTRAL DIVISION
MASTERFILE CORPORATION, Plainitff,

vs.
DEFENDANTS' REPONSES TO MASTERFILE CORPORATION'S SECOI\D SET OF DISCOVERY REQUESTS

Case No. 2:09-CV-00966
MARTIN GALE, dlblaTIIE GALE TEAM; LAUzuE GALE, dlblaTHB GALE TE,AM; ANd GALE, SERVICES, P.C., dlbla THE GALE TEAM,
Defendants.
Judge Dee Benson
Defendants Martin Gale, dlblaThe Gale Team; Laurie Gale, dlbla The Gale Team; and Gale Services, P.C., dlb/aThe Gale Team ("The Gale Team"), by and through its attorneys
of
record, heteby responds to Masterfrle Corporation's ("Masterhle") Second Set of Discovery

Requests as follows:
GENERAL OBJECTIONS
The Gale Team objects to Masterfile's discovery requests to the extent that they
impose a burden or obligation upon them not required by the Federal Rules of Civil Procedure.
936242.1
Z.
seek information protected against disclosure by the attorney/client privilege, the work product
doctrine, or any other privilege or confidentiality provided for by law. The Gale Team construes
each discovery request not to seek any such objectionable information.
3.
ask for information that is outside of the possession or control of The Gale Team, that is in
Masterfile's possession, that is substantially as easily available to Masterfile as to The Gale

Team, that is publicly available, or that is otherwise available to Masterfile Corporation.
4.
are overly broad, unduly burdensome, or not reasonably calculated to lead to the discovery
of
admissible evidence.
5. 6.
call for speculation.

The Gale Team specifically reserves the right to introduce attrial all evidence
including evidence which is presently known to them but not deemed material or not known to
them, and/or which is discovered subsequent to the date of these Responses, and reserves the
right to amend these Responses without motion at any time. All of the Responses contained
herein are based only on the information and documents presently available to The Gale Team at
this stage in the litigation and discovery process. The Gale Team anticipates that further
discovery, independent investigation, legal research and analysis
will supply additional
facts, add
meaning to known facts, and establish additional and different factual and legal conclusions, all
2
936242.1
of which may lead to additions to, changes in, and/or variations from the statements set forth below. Each of the foregoing general objections is iricorporated into each response below.
SECOND SET OF REQUESTS F'OR ADMISSION REOUEST NO. 1: Admit that images which look identical to each of the Masterfile
images at issue in this case (Masterfile image codes: 700-00008231, et al.) have appeared on
YOUR WEBSITE.
ANSWER: Admit
REOUEST NO. 2: Admit that images which look substantially similar to each of the
Masterfile images at issue in this case (Masterfile image codes: 700-00008231, et al.) have
appeared on YOUR WEBSITE.
ANSWER: Admit.
SECOND SET OF INTERROGATORIES
INTERROGATORY NO. 1: If YOU do not unequivocally admit Masterfile's Request

for Admission No. l, above, DESCRIBE IN DETAIL the factual basis for YOUR failure to do
so, and IDENTIFY all differences YOU claim exist between each of Masterfile's images
(Masterfile image codes: 700-00008231, et al.) and similar images that have appeared on YOUR WEBSITE.
ANSWER: No response required. INTERRO TORY NO.2: If YOU do not unequivocally admit Masterfi le's Request
for Admission No. 2, above, DESCRIBE IN DETAIL the factual basis for YOUR failure to do
so, and IDENTIFY all differences YOU claim exist between each of Masterfile's images
3
936242
I
(Masterfile image codes: 700-00008231, et al.) and similar images that have appeared on YOUR WEBSITE,
ANSWER: No response required. INTERROGATORY NO.3: DESCRIBE IN DETAIL the use of all of the images
on
YOUR WEBSITE, which are similar to the images at issue in this case (Masterfile image codes:
700-00008231, et al.),INCLUDING when YOUR WEBSITE was created, when each of the
images was posted on YOUR WEBSITE, and when and how each of the images was removed
from YOUR WEBSITE.
ANS\ilER: Subject to and without waiving their
general objections, Defendants answer
that Gale Services P,C, purchased a completed presentation from Real Estate Power Tools in
March 2004. Real Estate Power Tools uploaded the presentation to www.galeteam.com in April
2004. RealEstate Power Tools protected the content of the presentation, and the Defendants did
not have any opportunity to alter the presentation, including any opportunity add or remove the
Images from the presentation. Upon notice from Masterfile of its allegation of copyright
infringement, Gale Services P.C. contacted Real Estate Power Tools and requested that the
identified images be removed from wuryv.galeteam.com Real Estate Power Tools removed the
images pursuant to the request from Gale Service P,C.
SECOID SET OF REOUESTS FOR PRODUCTION REOUEST FOR PRODUCTION NO. 1: If YOU do not unequivocally admit
Masterfile's Requests for Admission Nos.
and2 above, produce all DOCUMENTS
EVIDENCING any differences YOU claim exist between similar images that were on YOUR
4
936242 |
WEBSITE and the Masterfrle images at issue in this case (Masterfile image codes: 70000008231, et al.).
NEB:
No response required.
REOUEST FOR PRODUCTION NO. 2: Produce all DOCUMENTS that support or

relate to YOUR ans\ryer to Masterfle's Interrogatory No. 3 above'
ANSWER: Defendants will produce all properly responsive documents at a mutually

convenient time and location.
DATED this I 8th day of June , 2010.

JONES WALDO HOLBROOK & McDoNoUGH PC
/s/ Billie
By:
Siddowav Andrew G. Deiss Billie J. Siddoway At t o rney s fo r P I aint iff
5
936242.1
CERTIFICATE OF SERVICE
The undersigned hereby certifes that on the I 8th day of
June
,2070, a true and correct
copy of the foregoing was cause to be delivered by electronic mail to the following:
'Wesley D. Felix Nicole A. Skolout HOWREY LLP 170 South Main Street, Suite 400 Salt Lake City, Utah 84101
/s/
Billie J. S iddowav
6
936242
I
Exhibit 2
Wesley D. Felix (6539) Amber M. Mettler (11460)
SNELL & WILMER t-.r-.p 15 West South Temple, Suite 1200 Gateway Tower West Salt Lake City, Utah 84101 Telephone: 801.257.1900 Facsimile: 801.257.1 800 Email: wfelix@swlaw.com amettler@swlaw.com
A n o rney s fo
r P I a i nt iff M as t e rJ I e C o rp o r at i o n

FOR THE DISTRICT OF UTAH, CENTRAL DIVISION
MASTERFILE CORPORATION,
Plaintiff,
VS
DECLARATION OF DANIEL B. POI!LACK

Case No. 2:09-cv-966
MARTIN GALE, IbIAT}IE GALE TEAM; LAURIE GALE, d/b/A THE GALE TEAM; and GALE SERVICES,P.C., d/b/a THE GALE TEAM,
Defendants
I, Daniel B. Pollack, declare as follows:
1. 2. 3, 4. 5, 6. 7.
I am over the age of 18 years,
a resident
of Toronto, Ontario, Canada, and am
fully competent in all respects to testif, regarding the matters set forth herein. I am employed by Plaintiff Masterfile Corporation ("Masterftle")
as general
counsel. I have held this position since September 2010.
I have personal knowledge of the facts set forth in this Declaration, except for
those facts stated on information and belief.
In October 2009, Masterfrle retained Howrey LLP ("Howrey"), located in Salt
Lake City, Utah, to pursue Defendants and protect Masterfile's copyrights in this matter.
After the Howrey firm dissolved, Masterfile retained Terry Jessop & Bitner, also
located in Salt Lake City, to continue to prosecute this litigation. Subsequently, in February 2013, Masterhle retained Snell
& Wilmer, LLP,
also
located in Salt Lake City, Utah, to continue to prosecute this litigation.
According to the records of Masterfrle, which are maintained in the ordinary
course of business in connection with this matter's file, Howrey billed Masterfile a total
of
526,711.00 in attorneys' fees, and $925,45 in costs associated with this matter. The attorneys
from Howrey who worked on this matter included Nicole A, Skolout, Aida Neimarlija, and
Wesley Felix, along with a paralegals, Shannon Macauley and Karmen Schmid. For the work
of
these attorneys and paralegals, Howrey charged $400, $410 and $460 per hour for Ms. Skolout, $280 per hour for Ms. Neimarlija, and $175 per hour for Ms. Macauley and Ms. Schmid. Mr.
Felix, a partner at the Howrey firm, did not bill any of the time that he spent on this matter to Masterfile.
8.
According to the records of Master{ile, whioh are maintained in the ordinary
course of business in connection with this matter's file, Terry, Jessop & Bitner billed Masterfile
a
total of $3,045.00 in attorneys' fees, and $104.12 in costs associated with this matter. The
attomey from Terry Jessop & Bitner who worked on this matter was Karmen Schmid, whose work was billed at the rate of $175 per hour.
9.
Since being retained, Snell
& Wilmer
has bilted Masterfile a total of $3,217.50 in
attomeys' fees associated withthis matter. The attorneys om Snell & Wilmer who worked on this matter are Amber M. Mettler and Mr. Felix. Snell & Wilmer charges Masterfile $385.00 per hour for Mr. Felix's services and $325.00 per hour for Ms. Mettler's services.
l0' .
A breakdown of ali fees, including a reasonably detailed desution of the time
spent and the work performed, is attached hereto as Exhibit A.

tI
Accordingly, Masterfile has incurred a total of
$3 2,973
.50 in attorneys' fees
associated with proseouting this litigation.
12, 13.
In addition, Masterfile has incuned costs of
$I
,029,57
. A breakdown of aJl costs
is attached hereto as Exhibit B,
declare under penalty of perjury that the foregoing statements are true and
correct to the best of my knowledge, information, and belief.
DATED this lst day of Apr1,20I3.
B. Pollack
EXHIBIT
Howrey LLP
Attorney/ Paralegal
Name Aida Neimarlija
A: Summary of Attorneys' Fees
Summary of Work Pcrformed Prepare complaint ; initial

disclosures; communications with opposing counsel
Hours
2
Hourly Rate
$280 $560
Total
Nicole Skolout
Communications with opposing counsel and client;

Prepare motion for partial summary judgment on
3,8
$400
$1,520
Nicole Skolout
3.2
$410
$1,312
infringement
Nicole Skolout
Prepare motion for partial summary judgment on infringemen! prepare opposition to defendant's motion for partial summary judgment; prepare reply in
4s.9
$460
$2l,ll4
support of motion for partial summary judgment; prepare
pre-trial disclosures; prepare for and attend summary

judgment hearing; communications with
oosinq counsel and client Shannon Macauley
Review discovery requests and evidence of defendant's

use
10,8
$ 175
1,890
of Masterfile's images;
Karmen Schmid
review and check citations in motion for partial summary judgment and opposition to defendant's motion for partial summary iudsment Check citations in reply brief in support of motion for partial summary iudsment
1.8
$ 175
$3l s
Total Fees:
s26.71t
Terry Jessop & Bitner

Attorney/ Paralegal
Name Karmen Schmid
Summary of Work Performed Prepare motion for

summary judgment on
damages;
Hours
17.4
Hourly Rate
$175
Total
$3,045
communications with opposing counsel and
client
Snell & Wilmer

Attorney/ Paralegal
Name Amber M. Mettler
Summary of Work Performed Prepare motion for

summary judgment on damages;
Hours
9.90
Hourly Rate
$325
Total
$3,217.50
communications with
client
Wesley Felix
Prepare motion for summary judgment on damages; $380
communications with client
Total
Fees
973.s0
EXHIBIT B: Summary of Costs

Howrey LLP
Description Filine fee for Complaint Service of Comolaint lmileaee fees)
Photocopies
Amount
$3s0.00
$20.35 $224,90 $330,20
Lexis lcgal research
Total
s925.45
Terry Jessop & Bitner

Description
Westlaw and related leeal research
Photocopies s102.32
$
Amount
1.80
Total Total Costs
$104.12
s1.029.57
Exhibit
V/esley D. Felix (6539) Amber M. Mettler (11460)
SNELL&WILMERrrp
15 West South Temple, Suite 1200
Gateway Tower Vy'est Salt Lake City, Utah 84101 Telephone: 801.257.1900 Facsimile: 801.257,1800 Email: wfelix@swlaw.com amettler@swlaw.com
A
tt
or ney s fo
aint iff Mas
te
rfi I e C o r p o r at i o n

FOR THE DISTRICT OF UTAH, CENTRAL DIVISION
MASTERFILE CORPORATION,
Plaintift
vs.
DECLARATION OF WESLEY D. FELIX

Case
No. 2:09-cv-966
MARTIN GALE, d/b/A THE GALE TEAM; LAURIE GALE, dlblaTHB GALE TEAM; and GALE SERVICES,P.C., dlblaTHE GALE TEAM,
Defendants
I, V/ESLEY D. FELIX, declare
as
follows:
L 2.
I am over the
age
of l8
years, a resident of Salt Lake City, Utah, and am
fully competent
in all respects to testify regarding the matters set forth herein'
I am an attorney,
a member
in good standing of the Utah State Bar, and admitted to
practice law before all federal and state courts in the State of Utah. Snell & Wilmer, L'L.P' ("Snell &
Wilmer") and I are counsel for Plaintiff Masterfile Corporation ("Masterfile") in this matter. Prior to joining Snell &'Wilmer, I was an attorney at Howrey LLP ("Howrey") until January 207l,which served
as counsel
for Masterfile in this matter until 201 1 . I have personal knowledge of the facts set forth
herein.
3. 4.
I have personal knowledge of the facts set forth in this Declaration, except for those facts
stated on information and belief.
I have reviewed the hourly rates and bills by Masterfile's outside counsel in this matter
and believe they are reasonable based on the attorneys' skills, experience, and reputations. Further, the
work performed by Masterfile's attorneys during the course of prosecuting this litigation was necessary
and appropriate.
5.
I declare under penalty of perjury that the foregoing statements are true and correct to the
best of my knowledge, information, and belief,
DATED rhistelday of April,2013.
Felix

58.1 Apendix - Exhibits 1-3

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Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 1 of 61

Exhibit 2:Declaration of Daniel B. Pollack Exhibit 3: Declaration of Wesley D. Felix

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 2 of 61

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 3 of 61

IN THE UNITED STATES DISTRICT COURT

MASTERFILE CORPORATION, Plaintiff,

DECLARATION OF STEVE PIGEON

Honorable Dee Benson

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 4 of 61

I, Steve Pigeon, declare as follows:

I am over the age of I 8 years, a resident of Toronto, Ontario, Canada, and am

fully competent in all respects to testif, regarding the maffers

I am the President of Masterfrle Corporation ("Masterfile"). I make this

Declaration in support of Masterfile's Motion for Partial Summary Judgment on Damages. I

testif, to those facts if called as

Masterfrle is a stock photography agency that acquires, organizes, distributes, and

An important component of Masterfile's business is the concept of rights-

images for publications, reports, advertising, Internet websites, and the

like. When considering

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 5 of 61

When Masterfile's rights-managed images are used without authorization it harms

if such usage collides with

Therefore, the potential damage to Masterfile due to an unauthorized use of its

On March 26,2009, Masterfile sent the Defendants a notice of copyright

(with attachments) is attached hereto as Exhibit A'

Pursuant to Masterfile's Terms and Conditions governing the unauthorized use

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 6 of 61

In response to Masterfile's discovery requests in this action, the Defendants

Defendants' response to Interrogatory No. 3).

It is Masterfile's policy to calculate retroactive license fees based on the regular

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 7 of 61

Masterllle Image No.

Multiple secondary pages

Couple/House Family/House Woman Using Laptop

Table and Chairs Farm and Field

Multiple secondary pages

Broom Sweeping Dust

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 8 of 61

Seoondary page Secondary page Secondary page

$2,010 $2,010 $2,010 $2,010 $57,270

correct to the best of my knowledge, information, and belief.

DATED this lst day of April,2013,

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 9 of 61

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 10 of 61

41 0 929 3000 tel

800 387 9010 loll fre 419 S2S 2104 lsx

VIA FEDERAL EXPRESS

Notice of Copyright lnfringement

- www.teamgale.com of licensing rights-managed

Masterfile Corporation ("Masterfi[e") is in the business

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 11 of 61

Copyright Compliance Officer lde mosev@masterf ile.com LD/tg

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 12 of 61

Who ls Mastertile Corporatlon?

Case 2:09-cv-00966-DB Document 58-1 Filed 04/02/13 Page 13 of 61

800{87-9010 toll frso

CLAIM No, PMI-405-943

IIMAGES C.E,F E L ON SITE FOR 4 YEARS, ALL OTHEHS FOR 1 YEAR]

IMAGE CODE 700-00008231 700-00018138

DESCBIPTION a)House for Sale

b)Woman/Monltors c)Couple Palntlng

mult sec pagos

h)DollarSlgn )Woman on Phone

lx seo pagg lx sc pag