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1 I, SeanL. Mayers, hereby declare:2 reside in Toronto, Canada.y name s SeanL. Mayers.

I am he co-founderand he Chief ExecutiveOfficer of J!VE Media2Technologies, nc. ("J!VE Media"), a company incorporated in 2000 under thelaws of the Provinceof Ontario,Canada, ndhaving ts registered ffice inToronto, Ontario, Canada.

I hold a Masters n BusinessAdministration rom Queen'sUniversity,. 3.8 Kingston,Ontario,Canada, nd Certification n CompetitiveMarketing Strategy9 from WhartonBusinessSchool n Philadelphi~Pennsylvania.

was he BusinessDevelopmentManager0 Before oining J!VE Media,.for Hotline Communications Ltd, a company that focused on file-sharing softwarewas he Marketing,Media and SalesDirector of2

have over ten years of businessexperience n the3applications.Before hat,Ticketmastern Canada.internetentertainmentndustry,during he last four yearsof which I have4

IS specialized n businessopportunities in the peer to peer and distributed computing16 communities f the nternet.1718

5. J!VE Media s the creatorof a suite of digital video packaging, igital.rights management,nd mediadelivery services,which enable ontentproviders o19 distribute heir video contentvia file-sharingon open,decentralized eer-to-peer2021

networks and instant messagingcommunities. We specialize n three types ofservices: irst, safeguardingand customized digital packaging of clients' videocontent; second,distribution of enhancedvideo content using the file sharing2softwareof our SyndicatedDistributionNetwork Partners; nd hird, tracking of3

24 our clients' enhancedvideo content.J!VE Media relies on the file sharingsoftwareof the members f our5 6,

26 SyndicatedDistribution Network to distribute content provided by our clients.I!VE Media's Syndicated Distribution Network Partners nclude LimeWire,7

By using he file8 Grokster, MusicCity, and other peer to peer technology leaders. -2- 1416528DECLARATION OF SEAN [MAYERS IN SUPPORT OF DEF~DANT'S MOTION FOR PARTIAL SUMMARY JUDGMENT -

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1 sharing software of its Syndicated Distribution Network Partners o distribute2 content,J!VE Media is able o distributeour clients' content o the 17million34

computershat currentlyusepeer o peer ile-sharingnetworks.7. I!VE Media's clients are contentproviderswho are willing to have

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their J!VE Media protected content distributed by users of peer to peer file sharingsoftware, including the millions of users of the Morpheus, KaZaA and Grokster

.7 applications.89

8. Existing open,decentralized eer o peer ile-sharingnetworks,whencombinedwith the servicesofferedby J!VE Media, offer contentownersdistinct

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businessadvantagesover alternate online distribution technologies. Streaming andcentralized downloads represent he two most common forms of online distribution12 used by content owners today. Each has distinct drawbacks.

1314

9. Distribution via streaming sually nvolves repeated ccesso contentby consumers, hich in turn results n network congestion, egraded ontent

15 quality and high bandwidth costs for content providers.1611

10. Similarly, offering downloads rom controlledwebsitesentailsconsiderable andwidth,datastorage, nd maintenance osts,as he burdenof

18 providing these resources alls entirely on the content provider.19202122

11. By utilizing existing peer to peer file-sharing networks, in contrast,content owners are able to rely almost entirely on users o provide the most costlycomputing resources nvolved in digital distribution: data storage and bandwidth.I!VE Media's technology, meanwhile, provides the elements of security and

23 control that content owners desire.2425 12. The flagshipproductof J!VE Media s the J!VE PlayerPortableMedia File fomlat. This productallows J!VE Media to individually packagemusic26 videos, television and movie segmentsprovided by content providers, with.2J commercial sponsorshipand advertising selectedby our clients..28

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.} 3 J!VE PlayerPortableMedia Files areunique n several espects.2 First, they are designed o be downloaded by consumers,played and shared. The3 files arecompressedo make hem attractive o consumers nd o facilitate sharing4 betweennternetconsumers f peer-to-peer etworks, nstant-messaging5 communities r via an emaillilik.6789

14. Second,digital rights management n the files protect our clients'valuable video content. J!VE Media also tracks the distribution of our digitallywrapped content and reports on content distribution and promotional penetration oour clients.

10- 15 Third, J!VE -Pla~r Portable Media files allow content.providers to11 incorporate weblinks to e-commerce sites and can embed commercials which121314

dynamicallychange, epending n the contentbeingviewed by the consumer.16. Finally, sinceJ!VE Media distributesonly authorized ontent,J!VE

PlayerPortableMedia Files provide consumers ith the experience f watchingIS very high-quality, fIrSt-generationvideo content.16 7. A variety of content owners have recognized and embraced he17 opportunities presentedby combining open, decentralizedpeer to peer file-sharing18 networks with J!VE Media's technology. J!VE Media has concluded agreements:

(a) With the Priority Records division of the EM! Recorded Music92021

Group to package and distribute the promotional music video track"My Baby" by the well-known musical artist Lil' Romeo. J!VE

22 Media seeded he Gnutella/ Lime Wire peer-to-peer network with the23 enhanced ideo file. The file then spontaneously pread o the

FastTrack sers'network (comprised f usersof the Morpheus,425 KaZaA and Grokstersoftware).This promotionwas extremely26 successful. By November 2001, over 400,000 unique downloads27 had been recorded, of which 600/0ook place on open, decentraliZed28 peer-to-peernetworks;

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(b) With Koch International, the world's third largest ndependent2 music label;3 With CHUMCity Interactive, the media arm of Canada'sCHUMc)4 Television, which owns the 24 hour music channelMuchMusic, to56

packageand distribute severalof its proprietary television programsincluding the Movie Television and Fashion Television channels;

,. (d)8

With The ComedyNetwork, Canada's24 hour comedy cablechannel, or television content; and

9 (e)10

With Icebox Animation, the creatorsof the popular animatedhits"Zombie College," "Mr. Wong" and" StarshipRegulars"to

12,11

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packageand distribute selectedworks.18. J!VE Media is also currently exploring promotional and distribution

opportunities with contacts rom severalmajor motion picture studios and largeUnited States' and European elevision networks.

15 J!VE Media's businessdependsupon peer to peer file sharing9.16 networks, ncluding the networks formed by the community of users hat employ7 the software produced by the defendants n this case.

18 declareunder penalty of perjury under the laws of the United Statesof1920

America that the foregoing is true and correct and that this declaration s executedin Toronto, Canadaon ~AtIl,4;~ 11.{ ,2002

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-5-1416528 1DECLARA noN OF SEAN :: MA YERSIN SUPPORTOF DEFENDANTS MO-noNFOR PARTIAL SUMMARY JUDGMENT_.~ A' AA-.. ~ ~