EXHIBIT B

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1 IN THE UNITED STATES DISTRICT COURT

 FOR THE EASTERN DISTRICT OF TEXAS

2 TYLER DIVISION

3

4 VirnetX Inc., No. 6:11-cv-563,

5 Plaintiffs,

 -vs6

 Apple Inc.,

7

 Defendant.

8 _________________________________/

9 VirnetX Inc. and Science No. 6:12-cv-855,

 Applications Corporation,

10

 Plaintiffs,

11 -vs12 Apple Inc.,

13 Defendant.

 _________________________________/

14

15

16 HIGHLY CONFIDENTIAL - ATTORNEYS' EYES ONLY

17 VIDEOTAPED DEPOSITION OF

18 JOHN PATRICK GATES

19 CONTAINS CONFIDENTIAL BUSINESS INFORMATION

 SUBJECT TO PROTECTIVE ORDER

20 OCTOBER 29, 2014

21

22

23 Reported by: JENNY L. GRIFFIN

 CSR No. 3969, RMR, CRR, CLR

24

25 JOB NO. 214672

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1 VIDEOTAPED DEPOSITION OF JOHN PATRICK GATES,

2 produced as a witness at the instance of the

3 Plaintiff, and administered an oath, was taken in

4 the above-styled and numbered cause on the 29th day

5 of October, 2014, from 9:20 a.m., to 2:58 p.m.,

6 before JENNY GRIFFIN, CSR, in and for the State of

7 California, reported by machine shorthand, at

8 KIRKLAND & ELLIS LLP, 3330 Hillview Avenue, Palo

9 Alto, California 94304, pursuant to the Federal

10 Rules of Civil Procedure

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1 October 29, 2014 9:20 a.m.

2 P R O C E E D I N G S

3 THE VIDEOGRAPHER: We are now going on

4 video record. Today is October 29th, 2014. The

5 time is approximately 9:20 a.m. The location is

6 Kirkland and Ellis LLP, Palo Alto, California.

7 My name is Eli Good. I'm the video

8 specialist representing HG Litigation Services.

9 The civil action number is 6:11-CV-563/,

10 6:12-CV-855, in the matter of VirnetX Inc., versus

11 Apple Inc., and the deponent is Patrick Gates.

12 This video deposition is requested by the

13 plaintiff's counsel, Caldwell Cassady & Curry.

14 Will counsel please identify themselves

15 for the record.

16 MR. CURRY: This is Austin Curry, at

17 Caldwell Cassady & Curry, on behalf of plaintiffs.

18 MR. APPLEBY: Robert Appleby from the law

19 firm of Kirkland & Ellis for defendant Apple. And

20 with me is Jeanne Heffernan, also of Kirkland and

21 Ellis, and Jenny Yokoyama, as counsel at Apple.

22 THE VIDEOGRAPHER: The deponent may now be

23 sworn in.

24 ///

25 ///

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1 JOHN PATRICK GATES,

2 having been first duly administered an oath to tell

3 the truth, the whole truth, and nothing but the

4 truth, testified as follows:

5 EXAMINATION:

6 BY MR. CURRY:

7 Q. Good morning.

8 A. Good morning.

9 Q. Would you please state your name and

10 address for the record.

11 A. 

12

13 Q. Thank you.

14 And you understand that your testimony

15 today is given under oath?

16 A. I do.

17 Q. Is there any reason, like lack of sleep or

18 any medications, that would prevent you or hurt you

19 from -- or keep you from answering my questions

20 honestly and truthfully today?

21 A. No.

22 Q. You have a pretty extensive history with

23 this litigation, would you say?

24 MR. APPLEBY: Objection. Form.

25 THE WITNESS: I don't know what you mean

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1 A. I've heard that that happened, but I

2 haven't been involved in the content of those.

3 Q. Do you have any awareness of what the

4 court ordered Apple to pay as an ongoing royalty?

5 A. No, I don't know what that number is.

6 Q. Did the court's order of an ongoing

7 royalty factor into any decision by Apple as to

8 whether to continue relaying all FaceTime calls as

9 opposed to paying the ongoing royalty?

10 MR. APPLEBY: Objection. Form.

11 THE WITNESS: Well, we made the decision

12 to relay all the FaceTime calls before the whole

13 royalty conversation happened. So I would say no,

14 it didn't.

15 BY MR. CURRY:

16 Q. How expensive has it been for Apple to

17 relay all the FaceTime calls?

18 A. Well, that's kind of an interesting

19 question.

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17 Q. Is there a word that describes the

18 difference between the level of capacity that you

19 reserve and the peak that you project? In other

20 words, some level of comfort or --

21 A. I see. One word that sometimes might get

22 used for that would be "headroom."

23 Q. Headroom.

24 A. Yeah.

25 

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10 Q. I see. How long has Apple had the

11 FaceTime feature?

12 A. I believe we launched FaceTime in iOS 4

13 in 2010. But I would have to double-check that.

14 It's been a while.

15 Q. Has the history of the bandwidth usage for

16 relayed FaceTime calls been pretty stable -- not,

17 you know, if you compared days like, you know, a

18 random day in the year versus Christmas, but

19 just --

20 A. Right.

21 Q. -- has it been as stable year by year?

22 MR. APPLEBY: Objection. Form.

23 THE WITNESS: You're saying has it been

24 like sort of relatively constant since 2010? Is

25 that the --

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