EXHIBIT I

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IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF TEXAS

TYLER DIVISION

VIRNETX INC. AND SCIENCE * CIVIL ACTION NO.

APPLICATIONS INTERNATIONAL * 6:12-cv-855-RWS

CORPORATION, * (Lead Consolidated Case)

*

Plaintiffs, *

*

VS. *

*

*

APPLE INC., * Tyler, Texas

* January 28, 2016

Defendant. * 9:06 a.m.

---------------------------------------------------------

REPORTER'S TRANSCRIPT OF JURY TRIAL, VOLUME 4

BEFORE THE HONORABLE ROBERT W. SCHROEDER III

UNITED STATES DISTRICT JUDGE

---------------------------------------------------------

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instructions on that.

THE COURT: Yeah.

MR. JONES: Thank you, Your Honor.

THE COURT: That's fine.

Okay. Well, then the Defendant may call their

first witness.

MR. LOY: Your Honor, the Defendant calls

Frank Casanova to the stand.

THE COURT: All right.

MR. LOY: My understanding, Your Honor, is

Mr. Casanova has been sworn in. He was in the courtroom

during the swearing.

THE COURT: All right. Very well.

FRANK CASANOVA, DEFENDANT'S WITNESS, SWORN

DIRECT EXAMINATION

BY MR. LOY:

Q. Good afternoon, Mr. Casanova.

A. Good afternoon, Mr. Loy.

Q. Could you please introduce yourself for the jury?

A. Yes. My name is Frank Casanova, and I work at

Apple.

Q. When did you start working at Apple?

A. In 1988.

Q. Where do you live?

A. I live in a town called Saratoga. It's just

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Q. And you're not here to tell the jury that you're

aware of any technology that is an alternative to

VirnetX's technology for FaceTime and iMessage, are you,

sir?

A. No, sir, I wouldn't know one way or the other.

Q. And I don't know on behalf of Apple, right?

A. I don't know.

Q. You're going to have a technical expert to address

that?

A. We do have technical experts that will follow me,

that's correct, sir.

Q. I bet you get lots of questions at dinner parties

from folks when they find out that you work at Apple?

A. Lots of tech support questions, that's correct.

Q. All right. And I bet folks ask you about updating

their iPhones?

A. From time to time.

Q. And have you ever had anyone ask you, listen, I

updated my iPhone and it seems like it made it worse?

A. I have heard that from time to time.

Q. Now, Apple doesn't go around breaking its own

products for its customers, does it?

A. No, sir.

Q. That wouldn't be a good way to treat customers,

would it?

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A. No.

Q. Now, let's talk about FaceTime when Apple was

found to have infringed on FaceTime after the first

trial. Do you recall that?

A. I have that in mind.

Q. And Apple implemented what everyone agreed was a

non-infringing alternative, didn't they?

MR. LOY: Objection, Your Honor. Can we

approach?

THE COURT: Yes.

(Bench conference.)

MR. LOY: Mr. Ward asked the question, did

Apple -- everyone agrees is a non-infringing alternative.

This is walking right into the issue that was just

decided.

MR. WARD: Everyone agrees is a non-infringing

alternative. That's not a dispute. We agree; they

agree. He knows he testified on his deposition exactly

what it cost. He was asked that very question.

THE COURT: I know; but he didn't open the

door, Mr. Ward.

MR. WARD: No, we're -- we agree that it

doesn't infringe.

THE COURT: Okay.

MR. WARD: And that they've left it -- I want

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A. We do.

Q. All right.

A. It's not really a complaint department, though.

Q. You don't have a complaint department?

A. No. This particular one.

Q. Okay. Well, let's read this document.

Looks like this was received April 25th, 2014;

is that right?

A. Yes, I would agree.

Q. And, so, it was comment that was submitted via the

Apple Inc. Website by; and the name is blanked, right?

A. Correct.

Q. And this person writes: Dear Investor Relations,

I'm writing to express my extreme dissatisfactions with

Apple. A few weeks ago, I noticed that FaceTime was not

functioning on my iPhone 4. When I inquired at my local

carrier's store, they did not have any answers except

that I needed to upgrade my software to iOS 7. The

problem, iOS 7 does not function well on iPhone 4 and

iPhone 4S.

Let me stop right there.

Is that the first time you've heard that

complaint, that iOS 7 doesn't function well on an

iPhone 4?

A. Yes, sir, it is.

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Q. You've never heard that complaint before, that the

release of iOS 7 was too much information for a slower

processor?

A. I'm going to have to think about that. This was

quite a while ago. I haven't thought about it in this

context for a number of years.

Q. All right. Well, let's keep going then.

According to news reports, FaceTime no longer

works with iOS 6, even though no notice to this effect

was given by the company. When I tried to contact Apple

support, I am informed that I had to pay $19 just to

speak to someone, who will no doubt tell me that all I

need to do to remedy the problem is to upgrade the

operating system on the phone.

This is extremely frustrating, as the only

reason I and other friends and family purchased an iPhone

in the first place is to take advantage of the FaceTime

application.

Let's stop right there.

At least someone says the only reason they

bought this phone was for FaceTime, right?

A. Yeah. That's what this individual says, that's

correct.

Q. She and her friends and family, right?

A. Yes, sir.

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Q. The irony of the whole situation is that Apple

markets its products as bringing greater connectivity to

the world when, in fact, all Apple has done is cut me off

from my primary way of connecting with friends and

family.

I would greatly like to resolve this

situation. Up until now, I had always been a big fan of

Apple's products and company mission. If there's a way

to remedy this problem without upgrading my software, I

would appreciate if someone would contact me as soon as

possible. I look forward to hearing from an Apple

representative soon.

Thank you.

Did I read that right?

A. Yes, sir, you did.

Q. All right. And I'm going to -- there's a

resolution. We're going to come back to the resolution

of this one. But you had another complaint --

MR. WARD: Let's look at Document 4.

No, that's not the right -- and just zoom in.

Q. (By Mr. Ward) All right. This looks like one that

got sent to Tim Cook, right? And that's the CEO, right?

A. Yeah. Lower down in the -- right. At the top,

it's from Tim to someone else.

Q. Right. And this is within eight days of the other

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Q. And then let's go to the top of the 1117-1.

And this is largely a reprint. I won't spend

our time doing that.

Let's go to the next page of it with the

update on April 28th, 2014.

MR. WARD: Zoom in right there at the top.

Q. (By Mr. Ward) Going back to our problem: Unable to

make or receive FaceTime calls after April 16, 2014.

She declined to update her software and

indicated she would upgrade her iPhone instead, right?

A. That's what it says, correct.

Q. And so you don't know sitting in that chair

whether or not Apple was intentionally -- intentionally

breaking iPhones to get folks to upgrade to iOS 7; you

just had no knowledge of that?

A. Well, it's not our style to intentionally break

iPhones. But I don't know what took place in this thread

of conversations and e-mails.

Q. But not just the e-mails, you don't know anything

that happened after the verdict up until the release of

iOS 7 with respect to what Apple was doing internally

with its software. You're just, I don't know?

A. I do not know.

Q. You would agree with me that it's an innovative

way to sell new phones, though, right?

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A. Yes. But not -- not really a fair way to sell new

phones.

Q. Not fair, is it?

A. It's not how we would do it.

Q. Not how you would do it?

A. That's not how Apple works.

Q. How do you know that, sir, if you don't know

anything about the documents between November, 2012, and

the release of iOS 7?

A. Because --

Q. How do you know that?

A. I'm sorry I interrupted you.

Q. Go ahead.

A. Because I've worked at Apple since 1988 and I have

a much longer purview on our history and culture than

that.

Q. But you don't know about the documents?

A. No, sir.

MR. WARD: Pass the witness.

THE COURT: Redirect?

MR. LOY: Just briefly, Your Honor.

REDIRECT EXAMINATION

BY MR. LOY:

Q. Mr. Casanova, at the beginning of your direct

examination, you gave a very short introduction to your

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MR. AROVAS: No, Your Honor.

THE COURT: All right.

MR. CASSADY: No, Your Honor.

THE COURT: Good jobs today. Thank you

everyone. See you in the morning.

(Court adjourned.)

CERTIFICATION

I HEREBY CERTIFY that the foregoing is a

correct transcript from the stenographic notes of the

proceedings in the above-entitled matter to the best of

my ability.

/s/ Brenda Hightower Smith

BRENDA HIGHTOWER SMITH, CSR-FCRR Date: 1/28/2016

Official Court Reporter

Eastern District of Texas

Texarkana Division

State of Texas No.: 3107

Expiration Date: 12/31/16

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