Exhibit 15

To Declaration of Jarad Brown in Support of 

Federal Trade Commission’s 

Motion for Summary Judgment

Case 3:17-cv-00039-JD Document 178-17 Filed 09/21/18 Page 1 of 9
Case 3:17-cv-00039-JD Document 50-2 Filed 04/03/17 Page 1 of 8

1 CAUSE OF ACTION INSTITUTE 

PA TRICK J. MASSARI [admitted pro hac vice] [Lead Counsel] 

2 patrick.massari@causeofaction.org 

MICHAEL PEPSON [admitted pro hac vice] 

3 michael. pepson@causeofaction.org 

Admitted only in Maryland. 

4 Practice limited to matters and proceedings before United States Courts and agencies. 

KARA E. MCKENNA [admitted pro hac vice] 

5 Admitted only in New York and New Jersey. 

Practice limited to matters and proceedings before United States Courts and agencies. 

6 kara.mckenna@causeofaction.org 

1875 Eye Street N.W., Suite 800 

7 Washington, D.C. 20006 

Telephone: (202) 422-4332 

8 Facsimile: (202) 330-5842 

9 PILLSBURY WINTHROP SHAW PITTMAN LLP 

LAURA C. HURTADO (CSB #267044) 

10 laura.hurtado@pillsburylaw.com 

Four Embarcadero Center, 22nd Floor 

11 San Francisco, California 94111 

Telephone: (415) 983-1000 

12 Facsimile: ( 415) 983-1200 

13 

Attorneys for Defendants D-Link Corporation 

14 and D-Link Systems, Inc. 

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

19 FEDERAL TRADE COMMISSION, No. 3:17-cv-00039-JD 

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Plaintiff, 

vs. 

D-LINK CORPORATION 

and 

D-LINK SYSTEMS, INC., 

Defendants. 

No. 3: l 7-cv-00039-JD 

DECLARATION OF WILLIAM BROWN 

IN SUPPORT OF DEFENDANT D-LINK 

CORPORATION'S MOTION TO 

DISMISS 

BROWN DECL. ISO D-LINK CORPORATION'S 

MOTION TO DISMISS 

4812-8887-200 I .v I 

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Case 3:17-cv-00039-JD Document 50-2 Filed 04/03/17 Page 2 of 8

DECLARATION OF WILLIAM BROWN 

2 The undersigned declarant, William Brown, states: 

3 1. I am Chief Information Security Officer at 0-Link Systems, Inc. ("D-Link 

4 Systems"). Unless stated otherwise, the following facts are based on my own personal 

5 knowledge and, if called as a witness, I could and would testify competently thereto. 

6 2. I have reviewed the Federal Trade Commission ("FTC" or "Commission") 

7 Complaint in the above-captioned action. I provide this Declaration to address certain 

8 allegations in the Complaint concerning the relationship between 0-Link Systems and D9 Link Corporation ("D-Link Corp."). 

10 3. 0-Link Systems was incorporated in 1986 in the State of California and is 

11 organized under the laws of the State of California. D-Link Systems' principal place of 

12 business is in Fountain Valley, California. Among other things, 0-Link Systems sells a 

13 variety of differentiated router and IP camera products in the United States. 

14 4. D-Link Systems is a subsidiary ofD-Link Corp. As further explained below, 0-

15 Link Systems is its own separate, distinct, and independent business entity, and makes its 

16 own business decisions. 

17 5. D-Link Systems sells products in the United States that use the D-Link brand 

18 name owned by D-Link Corp. D-Link Corp. has owned the "D-Link" brand name for 

19 more than thirty (30) years. 

20 6. D-Link Systems communicates with D-Link Corp. personnel on various issues 

21 and keeps D-Link Corp. informed of matters that maybe relevant to D-Link Corp., or 

22 other businesses that sell D-Link brand products in other parts of the world. Examples 

23 include: (1) technology D-Link Corp. and other wholly or partially owned subsidiaries 

24 have developed for products that are not sold in the United States, which D-Link Systems 

25 could potentially borrow from and work with its own third-party vendor-manufacturers to 

26 adapt and customize to develop products for sale in the United States; (2) what feature 

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No. 3: l 7-cv-00039-JD 

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BROWN DECL. ISO D-LfNK CORPORATION'S 

MOTION TO DISMISS 

48 12-8887-200 1.vl 

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Case 3:17-cv-00039-JD Document 50-2 Filed 04/03/17 Page 3 of 8

1 sets of various products D-Link Systems may wish to decide to conduct testing for; and 

2 (3) ideas for new products to be sold under the D-Link brand. 

3 7. However, D-Link Corp. does not direct, control or influence D-Link Systems' 

4 daily operations or internal affairs. 

5 8. D-Link Systems has its own corporate management team with corporate officers 

6 and executives, including President, Controller, Vice Presidents, legal team (separate in7 house legal counsel), and Marketing team who are employees of D-Link Systems 

8 working in the United States and are completely independent from D-Link Corp. 

9 9. D-Link Systems maintains management and accounting systems that are separate 

10 from those ofD-Link Corp. D-Link Systems does not comingle funds or assets with D11 Link Corp. 

12 10. D-Link Systems maintains its own records regarding payroll for its own 

13 employees and for other financial matters. D-Link Systems pays its own employees. 

14 11. D-Link Systems files its own federal, state, and local taxes in the United States. 

15 D-Link Systems pays its own taxes. 

16 12. D-Link Systems executes leases for property under its own name (for example, 

17 for the warehouse it uses) and pays its own utility and other bills in its own name. 

18 13. D-Link Systems does not share any offices or team of employees with D-Link 

19 Corp.; D-Link Systems uses completely different offices and team of employees than D20 Link Corp. 

21 14. D-Link Systems is responsible for its debts and accounts receivable. D-Link 

22 Systems does not hold itself out as responsible for the debts of D-Link Corp.; D-Link 

23 Systems does not hold D-Link Corp. out as responsible for D-Link Systems' debts. D24 Link Systems is not a general agent of D-Link Corp. and does not have the authority to 

25 enter into contracts for or otherwise conduct business on behalf of D-Link Corp. 

26 15. D-Link Systems does not purchase goods from D-Link Corp.; D-Link Systems 

27 has not purchased any goods from D-Link Corp. since May, 2006. 

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No. 3: l 7-cv-00039-JD 

BROWN DECL. ISO D-LINK CORPORATION'S 

MOTION TO DISMISS 

48 12-8887-2001.vl 

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16. D-Link Corp. does not manufacture the products (including routers and IP 

2 cameras) D-Link Systems sells in the United States; since at least 2005, D-Link Corp. has 

3 not manufactured any products sold by D-Link Systems 

4 17. D-Link Systems has not received routers or IP cameras from D-Link Corp. since 

5 May, 2006. Instead, D-Link Systems receives the products it sells (including IP cameras 

6 and routers) directly from the independent third party vendors that manufacture and 

7 create and provide firmware updates for those products. 

8 18. D-Link Systems has a different team of employees in management, in-house 

9 legal, operations, marketing, sales, product department, technical support, accounting, 

10 finance, etc. than those employed by D-Link Corp. D-Link Systems does not share the 

11 same team of employees with D-Link Corp. 

12 19. All materials attached as exhibits to the FTC's Complaint (PXl-PXl 1) were 

13 created by D-Link Systems, Inc. To the best of my knowledge, D-Link Systems would, 

14 however, share with or allow D-Link Corp. and other wholly or partially owned 

15 subsidiaries, if they so desire, to use the information in said advertisements. 

16 20. D-Link Systems, not D-Link Corp., owns, hosts, and manages the "dlink.com" 

17 domain name, as well as the "us.dlink.com" domain name. Likewise, D-Link Systems 

18 owns, hosts, and manages "support.dlink.com" and other specific marketing cites ending 

19 in "dlink.com." The content of those websites is controlled by D-Link Systems' 

20 marketing department, with input, as appropriate, from D-Link Systems' internal legal 

21 team and outside counsel. D-Link Systems also controls the English-language content of 

22 the "mydlink.com" website; D-Link Systems is responsible for and owns the copyright 

23 for the content of the "mydlink.com" website in the English language. 

24 21. With respect to the "Security Event Response Policy" referenced in Paragraph 20 

25 of the Complaint (PXl), D-Link Systems developed it without feedback from or any 

26 other involvement by D-Link Corp. or other entities that sell D-Link brand products in 

27 other parts of the world. To assist D-Link Corp., D-Link Europe, and other entities that 

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No. 3: I 7-cv-00039-JD 

BROWN DECL. ISO D-LfNK CORPORA TTON' S 

MOTION TO DISMISS 

481 2-8887-2001.vl 

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Case 3:17-cv-00039-JD Document 50-2 Filed 04/03/17 Page 5 of 8

1 sell 0-Link brand products exclusively outside of the United States, the Security Event 

2 Response Policy additionally allowed users of D-Link products in Europe, Canada, and 

3 elsewhere to have an additional forum to report issues they might have with those 

4 products, even though such products are not sold in the United States. Consistent with 

5 this, 0-Link Systems has received reports regarding 0-Link brand products it does not 

6 sell, and which are not sold in the United States, from users in various other nations, 

7 which D-Link Systems subsequently relayed and communicated about with 0-Link Corp. 

8 D-Link Systems does, at times, communicate with D-Link Corp. and other sellers of0-

9 Link brand products about issues affecting products only outside of the United States. 

10 22. D-Link Systems develops its own marketing and advertising materials for the 

11 products it sells; D-Link Corp. has no control over the development of those materials. 

12 23. D-Link Systems develops and controls the warranty cards and user manuals that 

13 are packaged with all D-Link Systems products sold in the United States, as well as 

14 related brochures and sales information, which are developed by D-Link Systems' 

15 marketing department in California. 

16 24. D-Link Systems oversees what tests are going to be conducted to validate 

17 firmware in products like routers that D-Link Systems sells in the United States. For 

18 certain products, D-Link Corp. will provide suggestion or guidance on recommended 

19 tests to potentially have performed; however, D-Link Systems has authority to make the 

20 final decisions and is free to reject such guidance, if it chooses to do so. 

21 25. D-Link Systems is responsible for addressing any potential security 

22 vulnerabilities for any products that are sold by D-Link Systems in the United States. 0-

23 Link Corp. will sometimes inform D-Link Systems of potential vulnerabilities to be 

24 aware of; for example, if a product sold in other parts of the world might potentially have 

25 an issue, analogous products we sell in the United States may also potentially need to be 

26 evaluated to determine whether similar issues may be present. But D-Link Systems is 

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No. 3: l 7-cv-00039-ID 

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BROWN DECL. ISO D-LINK CORPORATION'S 

MOTION TO DISMISS 

48 12-8887-2001.v l 

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Case 3:17-cv-00039-JD Document 50-2 Filed 04/03/17 Page 6 of 8

1 responsible for addressing any potential security vulnerabilities for any products that are 

2 sold by D-Link Systems. 

3 26. D-Link Systems products (including IP cameras and routers) are from third-party 

4 vendors (not D-Link Corp.) that manufacture those products and then ship those products 

5 to D-Link Systems. D-Link Systems has authority to specify what the security 

6 requirements should be for such products. 

7 27. All of the third-party vendors that manufacture, ship, and create finnware updates 

8 for the routers and IP cameras that D-Link Systems sells in the United States are located 

9 in China, Hong Kong, or Taiwan. 

10 28. Most of the vendors that manufacture products for D-Link Systems conduct 

11 business in the Chinese language. For that reason, business negotiations and product12 related communications are commonly in Chinese. Contracts and other written 

13 communications may also be in the Chinese language. Many of the comments in the 

14 source code for D-Link Systems products are also written in Chinese. 

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29. 

30. 

I do not speak Chinese. I also cannot read or write in Chinese. 

For this reason, there is a language barrier that exists between the third-party 

17 vendors that manufacture and provide product support for D-Link Systems products and 

18 D-Link Systems. D-Link Corp. will be requested by D-Link Systems, from time to time, 

19 to facilitate the communications and provide a bilingual bridge of that barrier- a conduit 

20 to facilitate (and, as necessary, translate) communications between D-Link Systems and 

21 its overseas vendors. 

22 31. However, with respect to the products that these vendors manufacture for D-Link 

23 Systems, specifically, for sale in the United States, D-Link Systems makes independent 

24 decisions as to what products D-Link Systems will sell, what functions those products 

25 will perform, and what features those products will have. D-Link Corp. 's role, at least 

26 with respect to D-Link Systems products intended for sale in the United States, is limited 

27 to conveying information, at times, between D-Link Systems and the third party vendor. 

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No. 3: l 7-cv-00039-JD 

BROWN DECL. ISO D-LINK CORPORA TlON'S 

MOTION TO DISMISS 

4812-8887-200 I. v i 

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Case 3:17-cv-00039-JD Document 50-2 Filed 04/03/17 Page 7 of 8

1 32. If D-Link Systems believes a variant of a product using the D-Link brand that D2 Link Corp. and/or its non-U.S. subsidiaries sell in other parts of the world may also be 

3 suitable for sale in the United States, subject to appropriate customization and tailoring, 

4 D-Link Systems makes the corporate decision to instruct the third-party vendor5 manufacturer of the product to tailor and change the product design and features for the 

6 United States market. D-Link Systems decides what specific features and functions D7 Link brand products sold in the United States by D-Link Systems use or contain. 

8 33. If D-Link Systems does not want to sell a D-Link branded product in the United 

9 States, it cannot be forced to do so. D-Link Systems has the authority to stop or refuse a 

10 D-Link brand product from being sold in the United States if D-Link Systems determines 

11 that the security features are not appropriate for the market or for any other reason. 

12 34. D-Link Corp. personnel also, at times, help translate the reports for the testing of 

13 D-Link Systems products by an independent third party security testing company located 

14 in Taiwan (formerly known as the Institute for Information Industry, or "III," and 

15 renamed Onward Security Corporation, or "OWS," in late 2014). OWS conducts tests on 

16 D-Link Systems products overseas in Taiwan; OWS does not perform tests on D-Link 

17 Systems products in the United States. Because OWS is located in Taiwan, it can 

18 promptly communicate with the manufacturers in Taiwan, China and Hong Kong to 

19 identify the vulnerabilities, propose recommendation to address the issues and conduct 

20 further testing on the update fix firmware to ensure the proper function of firmware. 

21 When the testing reports are issued by OWS, they are mostly reported in the Chinese 

22 language for the manufacture's engineers to review and evaluate. At D-Link Systems' 

23 request, D-Link Corp. personnel will sometimes translate the results of such testing into 

24 the English language and relay the results. 

25 35. The FTC issued a civil investigative demand ("CID") to D-Link Systems dated 

26 June 13, 2013, propounding interrogatories and requiring production of documents and 

27 obtained records from D-Link Systems traced back at least to January 1, 20 11. The FTC 

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BROWN DECL. ISO D-LINK CORPORATION'S 

MOTION TO DISMISS 

48 12-8887-2001.vl 

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Case 3:17-cv-00039-JD Document 50-2 Filed 04/03/17 Page 8 of 8

issued a CID for oral testimony to D-Link Systems dated June 5, 2014 and a separate 

2 CID for oral testimony to me also dated June 5, 2014, and D-Link Systems fully 

3 complied with all such CIDs issued by FTC in this case. 

4 

5 I declare under penalty of perjury under the laws of the United States that the foregoing is 

6 true and correct. 

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Executed this 3rd day of April, 201 7 at Fountain Valley, California. :/ "/ 

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No. 3: I 7-cv-00039-JD 

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,/~__£-JJJ/11 7 WILLIAi\i BROWN 

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BROWN DECL. ISO D-LINK CORPORATION'S 

MOTION TO DISMISS 

4812-8887-200 I.vi 

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