14 December 2002. Transcript purchased for $60 from Exemplaris.com.

List of daily transcripts: http://cryptome.sabotage.org/usa-v-elcom-dt.htm


                                                                     1
 1               UNITED STATES DISTRICT COURT
 2             NORTHERN DISTRICT OF CALIFORNIA
 3                    SAN JOSE DIVISION
 4   
    UNITED STATES OF         )    CR-01-20138-RMW
 5   AMERICA,                 )
                             )    
 6             Plaintiff,     )                   
                             )    San Jose, California 
 7                  vs.       )    December 4, 2002  
                             )    DIAZ CROSS-EXAM
 8   ELCOM LTD., et al.,      )                    
                             )
 9             Defendants.    )                         
    _ _ _ _ _ _ _ _ _ _ _ _ _)
10   
             PARTIAL TRANSCRIPT OF PROCEEDINGS
11           BEFORE THE HONORABLE RONALD M. WHYTE
                UNITED STATES DISTRICT JUDGE
12   
    A P P E A R A N C E S:
13   
    For the United States    United States Attorney's 
14   of America:              Office 
                             By:  SCOTT H. FREWING, 
15                            AUSA           
                             280 South First Street
16                            Room 371
                             San Jose, CA  95113
17   
    For the Defendants:      Duane Morris
18                            By:  JOSEPH M. BURTON, ESQ
                             GREGORY G. ISKANDER, ESQ
19                            Spear Tower    
                             One Market Street
20                            Suite 2000
                             San Francisco, CA  94105
21             
22   
23   
24   Court Reporter:          PETER TORREANO, CSR
                             License Number 7623
25   

                                                                     2
 1                    INDEX OF WITNESSES
 2   GOVERNMENT'S WITNESSES
 3   THOMAS DIAZ
 4             Resumed Cross-Examination     P. 3
              by Burton 
 5   
                     INDEX OF EXHIBITS
 6   
    DEFENDANT'S EXHIBITS          MARKED    ADMITTED
 7        147                                 P. 5   
 8                  
 9   
10   
11   
12   
13   
14   
15   
16   
17   
18   
19   
20   
21   
22   
23   
24   
25   

                                                                     3
 1   San Jose, California              December 4, 2002
 2                   PARTIAL PROCEEDINGS
 3             THE COURT:   Good morning, everyone. 
 4             You can be a little more lively. 
 5             Mr. Frewing, are you ready to continue?  
 6   Excuse me.  Mr. Burton, I guess.
 7             MR. BURTON:  I am, Your Honor. 
 8             THE COURT:  Okay. 
 9             MR. BURTON:  I think that Mr. -- we were 
10   going to continue with Mr. Diaz.
11             THE COURT:  Mr. Diaz, right.
12             Good morning.
13             THE WITNESS:  Good morning.
14             THE COURT:  Are you all set? 
15             THE WITNESS:  Yeah.
16             THE COURT:  Okay.  You're obviously still 
17   under oath.
18             THE WITNESS:  All right. 
19                 RESUMED CROSS-EXAMINATION
20   BY MR. BURTON: 
21   Q    Good morning, Mr. Diaz. 
22   A    Good morning. 
23   Q    One of the things that I believe you testified 
24   that you're concerned about, Adobe's concerned 
25   about with digital eBooks -- digital eBooks -- 

                                                                     4
 1   eBooks is that if the encryption is somehow broken 
 2   someone could make copies of the eBook and 
 3   distribute that eBook; correct?
 4   A    That's -- that's right.
 5   Q    I mean, you could have a situation where you 
 6   have hundreds, thousands or more of illicit copies 
 7   distributed and available; correct?
 8   A    That was our concern.
 9   Q    And that remains a concern?
10   A    It remains a concern.
11   Q    Okay.  Now, in the case of the Elcomsoft 
12   product, once you learned that it came out, did you 
13   make any effort to determine whether or not there 
14   were illicit copies circulating of eBooks which are 
15   under the Adobe PDF format?
16   A    I did.
17   Q    Okay.  And let me show you -- let me show you 
18   what I marked for identification as Defense Exhibit 
19   147 and ask you if you recognize it. 
20   A    Yes.  This is an e-mail message that I sent to 
21   two of our customers who provide eBook fulfillment, 
22   Malcolm Lockhart and Phil Clark.
23   Q    All right.  So it's a document you prepared 
24   and you sent; correct?
25   A    I did.

                                                                     5
 1             MR. BURTON:  Your Honor, I would move 
 2   that into evidence as Defense 147.
 3             MR. BURTON:  No objection. 
 4             THE COURT:  All right.  147 is admitted. 
 5             (Whereupon, Defendant's Exhibit Number 
 6             147, previously marked for 
 7             identification, was admitted into 
 8             evidence.)
 9   BY MR. BURTON: 
10   Q    I'm just going to put it on the screen so the 
11   jury can see it.  We're just going to talk about it 
12   just very briefly. 
13             Now, in there there's a phrase here that 
14   says:  "We are continuing hacked-file surveillance 
15             and I should have some preliminary 
16             results tomorrow."
17             Do you see that?
18   A    Yes.
19   Q    Can you explain to the jury what you mean by 
20   that. 
21   A    Yes.  I hired two companies, Reciprocal 
22   Incorporated and a company called BayTSP, to 
23   conduct surveillance on the Web for unencrypted 
24   copies of several eBooks.  The unencrypted eBook 
25   files were provided to me -- or permission was 

                                                                     6
 1   provided to me to do that by the publishers of the 
 2   books.
 3   Q    Okay.  And these are eBooks you assumed that 
 4   if somehow the Elcomsoft product were used it might 
 5   be used to produce illicit copies of those?
 6   A    Not exactly.  I asked the publishers to 
 7   contribute one or two titles apiece of what they 
 8   believed were some of their most popular ones.  So 
 9   it was something of a spot check to see if popular 
10   eBooks that were selling well were being trafficked 
11   on the Web in an unencrypted form.
12   Q    Did you find that that was the case?
13   A    We didn't find any conclusive evidence that 
14   that was the case.  We found a few out there, but 
15   the publishers of the books presented me with other 
16   evidence that suggested that they might have leaked 
17   from other causes than the Elcomsoft tool.
18   Q    To present have you or Adobe, if you know, 
19   have you found any indication that the Elcomsoft 
20   product was used to make illicit copies of books?
21   A    Not to my knowledge.
22   Q    Now, remember yesterday we talked about the 
23   situation with Riding the Bullet; correct?
24   A    Right.
25   Q    Now, in that situation the encryption of that 

                                                                     7
 1   eBook was broken; correct?
 2   A    It was.
 3   Q    Okay.  And in that case were illicit copies of 
 4   that book Riding the Bullet out on the Internet?
 5   A    Yes.
 6   Q    And, in fact, there were a lot?
 7   A    Enough so that it wasn't necessary for us to 
 8   conduct surveillance.
 9   Q    You knew it?
10   A    Yes.
11   Q    I mean, to be fair, and I know you don't know 
12   the numbers, but there were significant illicit 
13   copies that were available on the Internet at the 
14   time of that breach; correct?
15   A    Yes, that's right.
16   Q    All right.  Now, yesterday we talked about 
17   this concept of permissions that a creator of a 
18   document or an eBook in this instance can have or 
19   can place on the eBook.  Do you remember that?  We 
20   had a lot of discussion about that. 
21   A    Yes.
22   Q    And those permissions include the ability, for 
23   example, to copy a page or more than a page or 
24   print, to lend the book, et cetera; correct?
25   A    That's right.

                                                                     8
 1   Q    Now, if I were to go and purchase an eBook on 
 2   the Web, do I know what permissions are on that 
 3   book prior to the time that I purchase it?
 4   A    Not necessarily.  Some -- some web retailers 
 5   tell you what the permissions are and some don't.
 6   Q    Okay.  Do you know what the general practice 
 7   is?
 8             THE COURT:  Assuming there is one?
 9             MR. BURTON:  Well, let me rephrase it.
10   BY MR. BURTON: 
11   Q    Are you aware of whether telling you what the 
12   permissions is is or not telling you is a more 
13   prevalent practice?
14   A    I'm not.  Where I buy my books the retailer 
15   does tell you.
16   Q    And where is that, by the way?
17   A    Powells.com.
18   Q    Do you know what the practice is with respect 
19   to Amazon.com?
20   A    I don't know.
21   Q    Do you know what the practice is with respect 
22   to Barnes & Noble?
23   A    I believe that Barnes & Noble does not say 
24   what the permissions are before you buy.
25   Q    And so if I were, for example, at Barnes & 

                                                                     9
 1   Noble and I were to buy the book, I -- when is the 
 2   first time I would know what I could do with that 
 3   book?
 4   A    If I remember Barnes & Noble's practices 
 5   correctly, you would know that after you bought the 
 6   book and when you were reading it inside the eBook 
 7   reader.
 8   Q    Okay.  After I paid for it and I'd open it up.  
 9   That's when I would know what I could do with it; 
10   correct?
11   A    That's right.
12   Q    All right.  Now, with respect to the issue of 
13   permissions again, those are features which are put 
14   on to I guess the word is "protect" the rights of 
15   the creator of the document; correct?
16   A    Yes.
17   Q    Okay.  Now, does the Adobe software have any 
18   features which -- which are -- does it have any 
19   features which would protect any of the user's  
20   rights?
21   A    I'm not sure I understand the question. 
22   Q    Do you not understand the term "user rights"?
23   A    Well, I understand what those two words mean, 
24   but I don't understand how to answer the question.
25   Q    All right. 

                                                                    10
 1   A    What's an example of a user's right?
 2   Q    Let me answer the questions -- or ask the 
 3   questions.  I could answer them, but that wouldn't 
 4   be fair.  So let me ask the questions.
 5             I take it from that the concept of user 
 6   right is not something you understand when I use 
 7   that term?
 8   A    I'd just like a more specific question.
 9   Q    Okay.  Well, let me ask this question:  My 
10   ability to -- well, let's do this. 
11             I showed you Exhibit 145 yesterday which 
12   is the PDF document, the large PDF document; right?  
13   And, by the way, if you open it, that book has with 
14   it a CD ROM, does it not?
15   A    Yes, it does.
16   Q    And that CD ROM has the entire text of the 
17   book?
18   A    That's right.
19   Q    Okay.  And I don't know whether you know.  Is 
20   that CD ROM protected?
21   A    I actually don't know.
22   Q    All right.  Now, with respect to this book, if 
23   I want to take that book after I bought it and give 
24   it to Mr. Frewing to allow him to use it, that's my 
25   right to do, is it not?

                                                                    11
 1   A    Yes.  As I understand it, that's part of the 
 2   US copyright law, the first sale principle.
 3   Q    Okay.  I could do that.  Now, if I got that 
 4   book in digital format, could I do that?
 5   A    Actually, that depends on whether the 
 6   publisher has enabled the give right.  So if that's 
 7   an example of a user right, then there is one in 
 8   the system.
 9   Q    But in the case of the eBook whether I can do 
10   that or not depends on whether the publisher allows 
11   it?
12   A    That's correct.
13   Q    Is that right?
14   A    Yes.
15   Q    But in the case of the p-book that's in front 
16   of you I do that, as you understand it, because I 
17   have a right under copyright law to do that?
18   A    That is right.
19   Q    And so that's a difference, is it not, between 
20   the rights that a user has with an eBook versus the 
21   rights he has with a p-book?
22             MR. FREWING:  Your Honor, I would object.  
23   This calls for a legal conclusion.
24             THE COURT:  He can ask the question as to 
25   whether that can be done.  Whether or not that's a 

                                                                    12
 1   legal right is a different issue.  You can ask him 
 2   whether or not that can be done with a p-book as 
 3   you put it and not done with an eBook.
 4             MR. BURTON:  All right.
 5             THE COURT:  But as far as whether legally 
 6   that's permissible or not, that's a different 
 7   issue.
 8   BY MR. BURTON: 
 9   Q    So it's clear that it cannot be done without 
10   the permission of the publisher; correct?
11   A    Yes.  That was true at the time of the 
12   Elcomsoft event in any case.
13   Q    Okay.  Now, would it be possible to make 
14   software such that you could do precisely the same 
15   thing?
16   A    Not precisely, of course, but, yes, it would 
17   be possible to remove that right from the system 
18   and make all books lendable or all books givable.
19   Q    Okay.  Now, let's take another example, if I 
20   could.  If I had that book, if I'm a teacher in a 
21   public school or any school and I want to -- and I 
22   take a chapter of that book and make a copy of a 
23   chapter of that book with the full complete chapter 
24   with appropriate attribution -- you understand what 
25   I mean when I say that?
                                                                    13
 1   A    Yes, I do.
 2   Q    And so the jury understands that means when I 
 3   copy it I make it clear that it's a book published 
 4   by Adobe and the author is whoever it is; correct?
 5   A    I understood what "attribution" means.
 6   Q    Well, but I want to make sure the jury 
 7   understands.
 8   A    That's what "attribution" means.
 9   Q    So as I explained it, that's essentially 
10   correct, my explanation of "attribution"?
11   A    Yes.
12   Q    So if I'm a teacher and I make a copy of a 
13   chapter of that book with appropriate attribution 
14   because I want to give it to my students in class 
15   to do a project, is it your understanding that I 
16   can do that?
17   A    No.
18             MR. FREWING:  Objection.  Vague as to 
19   whether practical or legal.
20             THE COURT:  Sustained.  I agree.  You can 
21   ask him whether practically that can be done.  
22   Whether that's legal or not, it's not within this 
23   witness's expertise to tell us. 
24   BY MR. BURTON: 
25   Q    Well, you understand that I could do that 

                                                                    14
 1   practically; correct?
 2   A    Yes.
 3   Q    I could do it as a practical --
 4   A    Run a Xerox machine and make your copies, 
 5   right.
 6   Q    Okay.  Now, with respect to that same book in 
 7   eBook format, could I do it as a practical matter?
 8   A    Again it depends on whether the publisher has 
 9   enabled certain permissions.
10   Q    Now, let me ask this question:  Are you aware 
11   of practical reasons that a legitimate owner of an 
12   eBook might want to change the permissions on that 
13   eBook?
14   A    Yes, I am.
15   Q    What might be some practical reasons that a 
16   legitimate, legitimate owner now, might want to 
17   change permissions on an eBook?
18   A    Might want to copy the book to another 
19   computer they owned without having to call customer 
20   service.
21   Q    Okay.  Any others that you can think of?
22   A    I could speculate more and more, but that's 
23   one that comes immediately to mind.
24   Q    Okay.  Lending that we just talked about, 
25   that's an example; yes?

                                                                    15
 1   A    Yes.
 2   Q    That's a practical reason; yes?
 3   A    Yes.
 4   Q    Frankly -- or not frankly, but actually the 
 5   example we talked about in terms of a schoolteacher 
 6   or a teacher, that's a practical reason; yes?
 7   A    Well, schoolteachers might not -- 
 8   schoolteachers might have to get the publisher's 
 9   permission to do what you suggested.
10   Q    Okay.  How about -- all right -- as an 
11   individual for a research project; is that a 
12   practical reason?
13   A    A research project? 
14   Q    Uh-huh. 
15   A    I don't understand what you mean.
16   Q    A student. 
17   A    What would the student be -- you just said 
18   research project.
19   Q    Doing a research project. 
20   A    I can't answer.  I guess I don't understand 
21   what the student would be doing.
22   Q    Can't answer?  Okay.  That's fine. 
23             How about making -- can you make notes 
24   or -- on an eBook?
25   A    Yes, in our system we can.

                                                                    16
 1   Q    Does that require permissions or not?
 2   A    No.
 3   Q    Okay.  How about with respect to writing or 
 4   changing, marking out, crossing anything in an 
 5   eBook, the words that are on the page?
 6   A    You can't alter the text.
 7   Q    You can't alter the text?
 8   A    That's right.
 9             MR. BURTON:  Okay.  Your Honor, may we 
10   approach the bench? 
11             THE COURT:  Sure. 
12             (Whereupon, the following conference was 
13   held at side-bar, out of the hearing of the jury:)
14             MR. BURTON:  Your Honor, I think that I 
15   have -- or I should have the right to ask this 
16   witness about his knowledge, his own understanding 
17   of the fair use issue regarding digital books.  
18   This is what I referred to as the elephant in the 
19   room. 
20             There's an ongoing debate over this, over 
21   the extent to which the users have the rights for 
22   the books that they initially purchase.  It seems 
23   to me that the existence of that debate is a 
24   question which goes to the good faith defense.  If 
25   the Defendant is -- we're aware of that.  It's 

                                                                    17
 1   certainly something that could inform their own 
 2   actors.  Even if they are not aware of it it is 
 3   something that goes to the reasonableness of an 
 4   assertion that they make that that is why they did 
 5   what they did. 
 6             I mean, we don't have to ask for a legal 
 7   opinion, but the existence of that debate and the 
 8   issue seems to be a reasonable issue.
 9             MR. FREWING:  First of all, it's not a 
10   legal matter.  His understanding of the law in this 
11   area isn't relevant at all and his understanding of 
12   whether the dispute exists doesn't bear on whether 
13   the Defendants knew about it.
14             THE COURT:  I agree with the latter at 
15   least.  It seems to me that the only issue that 
16   comes in on this is the willfulness issue and 
17   that's really your client's state of mind.  The 
18   fact that he may know or understand the debate 
19   about fair use or understand fair use doesn't have 
20   anything to do with whether your clients 
21   understand.
22             MR. BURTON:  But it has to do with the 
23   reasonableness of any belief that they had, a good 
24   faith belief they have on the reasonableness of it 
25   that certain evidence of -- if all the clients 

                                                                    18
 1   assert is "I believe that," okay.  That's fine.  
 2   The jury can believe it or disbelieve it. 
 3             But certainly the question of whether or 
 4   not what was out there was some issue about -- 
 5   about fair use or what the limits, et cetera, were 
 6   goes to the question of the reasonableness of that.  
 7   And the jury can determine whether -- whether they 
 8   believe it or not.  I mean, the jury could 
 9   determine, yeah, there was an issue that was out 
10   there, but I don't believe these Defendants relied 
11   on it or did anything for it. 
12             They have a totally free mind, but they 
13   can also make the opposite conclusion.  They could 
14   say look, there was a debate.  These clients -- 
15   when these clients decided that they did their acts 
16   because they believed a certain thing was within 
17   fair use, the jury can say that seems reasonable to 
18   me or the jury can say no, it doesn't seem 
19   reasonable to me. 
20             But it seems to me that it goes to 
21   that -- that question and willfulness is an issue, 
22   but fair use is -- it's not a defense, but fair use 
23   is a counter, if you will, to willfulness and the 
24   reasonableness of that, of that belief seems to me 
25   to be at issue.

                                                                    19
 1             MR. FREWING:  I don't think it bears on 
 2   whether or not Defendants were even aware of it, 
 3   whether Defendants had in their mind and on top of 
 4   that I think it exceeds the scope of direct and we 
 5   haven't talked about fair use at all and we haven't 
 6   talked about his understanding of disputes in the 
 7   industry even on direct.
 8             THE COURT:  I agree with Mr. Frewing at 
 9   this point.  Maybe if your clients testify, if they 
10   do, maybe there will be some argument that the 
11   existence of a dispute out there would be relevant, 
12   but at this point I think Mr. Frewing is right.  I 
13   don't think that -- what this individual's  
14   knowledge of a dispute has to do with the 
15   Defendant's knowledge and I don't think we need to 
16   get into anything he thought.  It's a side issue.
17             MR. BURTON:  It's basically that it's 
18   arising again.  The reason I'd like to avoid it is 
19   the reason to call him back if we needed to do 
20   that.  That's why I'm trying to avoid it 
21   particularly since he's out of state.  He's from 
22   Massachusetts.
23             THE COURT:  He hasn't been designated as 
24   an expert, has he?
25             MR. BURTON:  But this is not an expert 

                                                                    20
 1   issue.  This is an issue of not legally whether or 
 2   not --
 3             THE COURT:  I understand your issue is 
 4   that there was out there some discussion about --
 5             MR. BURTON:  Absolutely.
 6             THE COURT:  -- fair use.
 7             MR. BURTON:  There's a huge discussion 
 8   about it.
 9             THE COURT:  I know.  I'm totally aware of 
10   that.
11             MR. FREWING:  I would suspect that 
12   dispute arose after July 15th, 2001 in prominence.
13             MR. BURTON:  Absolutely.
14             THE COURT:  At this point I'm going to 
15   sustain the objection and we can revisit it later.
16             MR. BURTON:  Very well. 
17             (Whereupon, the following proceedings 
18   were held in open court in the presence of the 
19   jury:) 
20             THE COURT:  All right.  You may continue.
21             MR. BURTON:  Yes, Your Honor.  Thank you.
22   BY MR. BURTON: 
23   Q    All right.  If I could at the risk of moving 
24   the chart out here so you can see it and we can 
25   make sure the jury can see it.  That's the 

                                                                    21
 1   important thing. 
 2             Can you see it?
 3             THE COURT:  Don't worry about me.  Worry 
 4   about the jury first.
 5   BY MR. BURTON: 
 6   Q    Can you see that reasonably well?  I'm not 
 7   going to do anything elaborate. 
 8   A    Yes.
 9   Q    When we were talking about the -- yesterday -- 
10   strike the question.  Let me do this first. 
11             Just for anybody that can't read my 
12   writing what I put on here on the top, if you can 
13   see it, "document encryption, security, 
14   permission." 
15             Do you see that?
16   A    Yes.
17   Q    Okay.  Now, in the Adobe PDF file system 
18   encryption is directly related to the security of a 
19   PDF file, a document; is that correct?
20   A    Yes.
21   Q    And encryption is directly related to the 
22   existence or non-existence of permissions on the 
23   document; is that right?
24   A    That's right.
25   Q    Okay.  And that's why I think it -- and when 

                                                                    22
 1   we talk about, here about encryption we're talking 
 2   about the document being encrypted using what's 
 3   known as a key; correct?
 4   A    That's right.
 5   Q    An encryption key?
 6   A    That's right.
 7   Q    All right.  And again not to be -- not to get 
 8   too technical.  In order to decrypt the document 
 9   you need access to that key or actually its 
10   opposite?
11   A    Yes, that's right.
12   Q    Correct?
13   A    That's correct.
14   Q    It's the key.  If you have the key, if a 
15   document is encrypted and you have the key, then 
16   you can decrypt it; correct?
17   A    That's correct.
18   Q    And if it's decrypted, then it's, as we 
19   discussed yesterday, that document then is in a 
20   plain PDF format and you can do anything with that 
21   plain PDF format?
22   A    That's correct.
23   Q    All right.  So if I -- in order to enforce -- 
24   or not enforce, but to have the permissions on an 
25   eBook it has to be encrypted; yes?

                                                                    23
 1   A    I think it's more correct to say what you 
 2   first said which is that in order to enforce 
 3   them -- the permissions can still be in the file, 
 4   but if the file weren't encrypted they could be 
 5   changed by the user.
 6   Q    All right.  Well, let me understand this and 
 7   see if I'm right.  And I don't want to get too -- 
 8   am I correct in understanding that when you have an 
 9   encrypted document within the PDF file there's 
10   something that's called an encryption dictionary?
11   A    That's right.
12   Q    Correct? 
13             And when there is an encryption 
14   dictionary that means that that document is 
15   encrypted; correct?
16   A    Yes.
17   Q    Okay.  And it's within that encryption 
18   dictionary, within it which is a computer file that 
19   there are certain bits, computer bits that indicate 
20   the various permissions; correct?
21   A    That's true with the standard handler.
22   Q    All right.  Right now I just want to talk 
23   about the standard handler. 
24             So the permission bits, if you will, are 
25   within that encryption dictionary?
                                                                    24
 1   A    That's right.
 2   Q    So no encryption dictionary, no permissions; 
 3   correct?
 4   A    Yes.
 5   Q    Okay.  And no encryption dictionary, the 
 6   document is not encrypted?
 7   A    Yes.
 8   Q    All right.  So if someone wanted to change or 
 9   remove these permissions without the permission of 
10   the creator, the way -- one way they would have to 
11   do it or the way they would have to do it is to be 
12   able to decrypt the file; correct?
13   A    That's right.
14   Q    Okay.  And a principal way to decrypt a file 
15   is to determine what the encryption key is; 
16   correct?
17   A    Yes.
18   Q    And once you determine that -- once you have 
19   the encryption keys, then you can decrypt the file 
20   and remove the permissions and do whatever you want 
21   to?
22   A    That's right.
23   Q    Correct?
24   A    That's correct.
25   Q    And so, as you indicated once, the goal is to 

                                                                    25
 1   find that decryption or find that encryption key; 
 2   correct?
 3   A    Yes.  In your scenario, that's correct.
 4   Q    And, in fact, with the AEBPR program you 
 5   indicated from the review that you did of it that 
 6   the goal of the program was to find the encryption 
 7   key. 
 8             Now, I know we're not talking about 
 9   standard handler, but with the eBook Reader the 
10   goal was to find the encryption key; correct?
11   A    Yes, that's right.
12   Q    Okay.  Now, it's true that with the eBook 
13   Reader where that key is located is different than 
14   with the standard reader; correct?
15   A    And where the permissions are located is also 
16   different.
17   Q    And where the permissions are located?
18   A    But I don't think that's an important detail 
19   in this scenario.
20   Q    But it's different?
21   A    Yes.
22   Q    And in this case the AEBPR program, as you 
23   understood it, what it was trying to do was to find 
24   that encryption key to use that encryption key to 
25   decrypt the document?

                                                                    26
 1   A    Yes.  It does two things.  First, it -- it 
 2   appears to contain a stored copy of a key that -- 
 3   of a secondary key that was removed from our 
 4   program and then it uses that key to find the key 
 5   on your diagram for any particular book.
 6   Q    Okay.  And let me, if I can.  I'll just do it 
 7   a little bit and see if we can understand it.  I 
 8   want to try and make it as reasonably simple as I 
 9   can.
10             As I understand the way the eBook Reader 
11   works is that an eBook really consists of two 
12   parts?
13   A    That's right.
14   Q    It consists of the text which is encrypted; 
15   correct?
16   A    Right.
17   Q    And it also consists of something that's 
18   called a voucher?
19   A    That's right.
20   Q    Which contains within that voucher the 
21   encryption key for that encrypted text; correct?
22   A    That's correct.
23   Q    Okay. 
24   A    That key is also encrypted.
25   Q    Well, I'm going to get to that, but at least 

                                                                    27
 1   those two parts are correct; right?  We've got the 
 2   text which is encrypted?
 3   A    So that's a PDF file.
 4   Q    This is for -- this is for eBook Reader?
 5   A    Yeah.
 6   Q    All right.  Which uses the PDF file.  We've 
 7   got the text encrypted and then we have a voucher 
 8   which has in it the encryption key and it's got 
 9   permissions in it?
10   A    It does.
11   Q    Is that what I heard?
12   A    And it has what are called meta data.  That's 
13   just a word that comprises things like the title of 
14   the book.
15   Q    Okay. 
16   A    So...
17   Q    And as I understood your earlier testimony, 
18   what the program did -- well, now let's do this:  
19   This encryption key within the voucher, all of this 
20   data information is itself encrypted?
21   A    Actually, just the encryption key is.
22   Q    Just the encryption key?  So let's just do 
23   that.  The encryption key is itself encrypted.  I'm 
24   sure I spelled it wrong, but that's okay. 
25             All right.  It's encrypted.  And the key 

                                                                    28
 1   for this encryption, okay, is on the computer; 
 2   correct?
 3   A    Yes.
 4   Q    It's on the person who buys the eBook on 
 5   that -- on their computer is the key for this 
 6   encrypted encryption key; yes?
 7   A    Yes.  Each -- each computer -- each individual 
 8   computer has a different key.
 9   Q    Okay.  But let's just say me, I buy --
10   A    So there isn't just one.
11   Q    All right.  That's fine.  That's fair. 
12             I buy a book.  The book in front of you, 
13   I buy it in digital format.  On my computer is a 
14   key and I think that's called a private key?
15   A    It is.
16   Q    Okay.  Is a private key which would allow me 
17   to decrypt the encryption key which once I get this 
18   encryption key I can use that to decrypt the text.  
19   That's the way -- essentially that's the way it 
20   works; correct?
21   A    Yes, absolutely.
22   Q    And so again it's important that I get this 
23   encryption key; correct?
24   A    Yeah.
25   Q    Because if I don't get this encryption key I 

                                                                    29
 1   can't change the text -- I can't get access to the 
 2   text and I take it also that I can't change the 
 3   permissions?
 4   A    Right.
 5   Q    Right?  I have to have this encryption key.  
 6   That's the key, as it were?
 7   A    Yes.
 8   Q    Yes.  All right. 
 9             Now, you were -- you had, I believe, some 
10   familiarity with the Elcomsoft program called the 
11   Advanced PDF Password Recovery program?
12   A    As I said yesterday, I'd heard of a program in 
13   an e-mail conversation I had in January of 2001.
14   Q    Okay.  And -- but you don't have any knowledge 
15   of how it works?
16   A    Nothing precise.
17   Q    Okay.  Do you know if one of the things it 
18   does in order to work is to find the encryption key 
19   for documents in the standard format?
20   A    Well, in the standard handler there's more 
21   than one possible encryption key, but if it's a 
22   recovery program it would -- by just the name it 
23   would be finding a key.
24   Q    One of its functions is to find one of, if 
25   there are more than one, the encryption keys to 

                                                                    30
 1   decrypt the document; correct?
 2   A    One of the passwords.  Passwords and 
 3   encryption keys in that system are one and the 
 4   same.
 5   Q    All right.  Well, let's use mine.  You said 
 6   they are saying.  I want to use the term 
 7   "encryption key."
 8   A    Fine.
 9   Q    One of the things it does is to find the 
10   encryption key; correct?
11   A    Well, presumably because that's what it's 
12   named and that's what it's sold to do.
13             MR. BURTON:  Okay.  I think that's all I 
14   have, Your Honor.
15                        ---oOo---
16   
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