Case3:14-cv-02323-WHA Document80 Filed01/14/15 Page1 of 8

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Judith B. Jennison, Bar No. 165929

JJennison@perkinscoie.com
PERKINS COIE LLP
1201 Third Avenue, Suite 4900
Seattle, WA 98101-3099
Telephone: 206.359.8000
Facsimile: 206.359.9000
Attorneys for Plaintiff
Facebook, Inc.

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

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SAN FRANCISCO DIVISION

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FACEBOOK, INC.,

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Case No. 3:14-cv-02323

Plaintiff,

DECLARATION OF JUDITH B.
JENNISON IN SUPPORT OF DAMAGES
FOR DEFAULT JUDGMENT

v.
MARTIN GRUNIN,

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Defendant.

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-1LEGAL124730353.5

DECLARATION OF JUDITH B. JENNISON

ISO DAMAGES FOR DEFAULT JUDGMENT
Case No. 14-cv-02323

Case3:14-cv-02323-WHA Document80 Filed01/14/15 Page2 of 8

I, Judith B. Jennison, declare as follows:

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I am an attorney admitted to practice before this Court and I am a partner with the

law firm of Perkins Coie LLP, counsel of record for Facebook, Inc. in this action. I have personal

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knowledge of the facts set forth in this declaration unless otherwise indicated and am competent
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to testify thereto.
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2015.

General Background

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Facebook submits this declaration pursuant to the Courts Order dated January 8,

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Perkins Coie has more than 1000 lawyers in 19 offices in the United States and

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I am the lead attorney in this litigation. Though I was not involved in the early

China.

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pre-litigation investigation of this matter, I have been supervising the matter since shortly before

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the case was filed, have worked extensively on the case, and have first-hand knowledge of the

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effort that has been required to litigate it. The following summary of litigation activities

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describes the types of activities that Perkins Coie timekeepers recorded to track the effort

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expended on this case.

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5.

I have reviewed the time entries recorded to the matters related to this litigation

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and have verified that the summaries provided in this declaration fairly and accurately reflect the
work actually performed by Perkins Coie timekeepers on this matter.

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Summary of Litigation Activities and Effort Expended

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Investigation

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6.

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Perkins Coie has represented Facebook in this action since before Facebook filed

its Complaint against Martin Grunin. Facebook referred the matter to Perkins Coie for

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DECLARATION OF JUDITH B. JENNISON

ISO DAMAGES FOR DEFAULT JUDGMENT
Case No. 14-cv-02323

Case3:14-cv-02323-WHA Document80 Filed01/14/15 Page3 of 8

investigation and with instructions to send a cease and desist letter to Grunin on or about March

1, 2011.

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From this time until January 22, 2014, Perkins Coie attorneys reviewed

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investigative reports from Facebook security staff, conducted forensic and other forms of
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investigation to document Grunins identity, whereabouts, and unlawful and unauthorized

activities, sent Grunin cease and desist letters and corresponded with him in an attempt to get him

to stop his unauthorized and unlawful activities, and reported back to Facebook.

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The total effort expended on these tasks is 25.9 hours, for a cost of $8,516.50.

Researching and Drafting the Complaint

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Between January 23, 2014 and May 20, 2014, Perkins Coie attorneys prepared the

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Complaint in this action. Prior to filing the Complaint, Perkins Coie attorneys and staff gathered
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and documented information and researched the legal theories underlying the Complaints claims.

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10.

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Case Management and Other Administrative Filings

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The total effort expended on these tasks is 139.1 hours, for a cost of $58,908.50

Efforts here included routine case management tasks, monitoring of Court filings,

Rule 26(f) requirements, preparation of Case Management Conference statements and settlement
discussions.

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The total effort expended on these tasks is 122.3 hours, for a cost of $60,149.

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Grunins Filings and Facebooks Motion to Strike, Entry of Default and

Motion to Set Aside Default

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13.

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Efforts here included reviewing and responding to the numerous filings by Grunin

and Brian Costello that were the subject of Facebooks motion to strike (filed June 19, 2014;
Order granting motion entered July 21, 2014). Facebook moved to enter default against Grunin

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on June 19, 2014, and the Court entered default on June 23, 2014. On August 18, 2014, Grunin
moved to set aside default, and Facebook opposed that motion. Facebook and Grunin filed
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DECLARATION OF JUDITH B. JENNISON

ISO DAMAGES FOR DEFAULT JUDGMENT
Case No. 14-cv-02323

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supplemental statements supporting their respective positions regarding entry of default on

October 27, 2014. Perkins Coie attorneys researched and prepared these filings for Facebook and

appeared at the hearing on October 30, 2014.

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The total effort expended on these tasks is 162.3 hours, for a cost of $80,751.50.

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Motion for Default Judgment and Documentation of Damages

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Perkins Coie attorneys also dedicated substantial time to preparing Facebooks

Motion for Default Judgment and related filings. We researched the legal standards applicable to

and prepared detailed briefing on the Motion for Default Judgment. We researched and evaluated

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the damages Facebook suffered and could recover. We spent significant time drafting and editing

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the moving papers and preparing and filing the motion.

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16.

On December 19, 2014, the Court requested supplemental briefing on certain legal

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questions. We incurred time researching the Courts questions and preparing our submission in
response to the Courts Order.
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We also incurred time and expenses preparing for and attending the January 8,

2015 hearing on the Motion for Default Judgment.

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The total effort expended on these tasks is 232.4 hours, for a cost of $118,032.50.

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Attorney Experience and Hourly Rates
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The hourly rate of each timekeeper billing for Facebook services is determined

based on the position and experience of the timekeeper.

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Perkins Coie has represented Facebook for many years and provides legal services

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to Facebook in a number of substantive areas. As such, Perkins Coie is able to efficiently and

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effectively represent Facebook, as it has a deep understanding of Facebooks business and legal

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issues.

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DECLARATION OF JUDITH B. JENNISON

ISO DAMAGES FOR DEFAULT JUDGMENT
Case No. 14-cv-02323

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Perkins Coie reviews its billing rates annually and adjusts them based on

experience levels, market factors, and inflation to ensure that they are within the range of the
prevailing rates of attorneys with similar experience in law firms of similar size.

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22.

The attorneys and paralegals who have worked on this case consistently with me

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beginning with the preparation of the Complaint are Joseph P. Cutler, Hayley L. Berlin, Steven D.

Merriman, and Joel Y. Higa. Our professional experience and description of our work on this

case are briefly summarized in the following paragraphs:

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Judith B. Jennison: I have been a practicing attorney since 1991 and am a

partner with Perkins Coie. I received my juris doctorate from Rutgers School of Law. I am
admitted to practice in California, the District of Columbia, New Jersey, Washington, and the

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federal courts in these states. In addition to my many years in private practice, I spent eight years
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as an in-house lawyer with Microsoft Corporation, where I led the companys Copyright and

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Trade Secret Group, served as associate general counsel for the Microsoft Office business, and

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was responsible for significant aspects of the companys worldwide antitrust compliance efforts.

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My area of practice is intellectual property and commercial litigation for technology companies

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with a focus on issues relating to software and the Internet. I worked extensively on this case,
supervising the other attorneys and paralegals. My billing rate for this case is $655 per hour.

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Joseph P. Cutler: Joseph P. Cutler is a counsel at the firm in his tenth year of

practice. He received his juris doctorate, cum laude, from the Georgetown University Law

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Center. He is admitted to practice in Washington. Mr. Cutlers litigation practice currently

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focuses on combating cybercrime and enforcing website terms of use, primarily for Facebook.

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He also routinely handles actions to prosecute individuals whose behavior interferes with client

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Web sites or Internet activity; these matters often require extensive Internet forensic work, cease-

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and-desist actions, and formal litigation. Mr. Cutler worked on all aspects of this case, including
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DECLARATION OF JUDITH B. JENNISON

ISO DAMAGES FOR DEFAULT JUDGMENT
Case No. 14-cv-02323

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investigating Grunin, researching and preparing the Complaint, preparing motions, researching

legal issues, supervising other attorneys and paralegals, and managing other day-to-day litigation

tasks. Mr. Cutlers billing rate for this case is $545 per hour.

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Hayley L. Berlin: Hayley L. Berlin is a fifth year associate in the firms litigation

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practice with a focus on privacy and security. She is admitted to practice in the District of

Columbia, Michigan, Washington, and various federal courts. She received her juris doctorate,

cum laude, from the University of Michigan. Ms. Berlins litigation practice focuses on

electronic privacy law, including the federal Wiretap Act, Stored Communications Act, the

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Computer Fraud and Abuse Act, and similar state statutes, and combating cybercrime and

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enforcing websites terms of use, primarily for Facebook. Ms. Berlin worked extensively on this

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case and her responsibilities included researching legal issues, drafting documents, and managing
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other day-to-day litigation tasks. Ms. Berlins billing rate is $410 per hour.
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Steven D. Merriman: Steven D. Merriman is a fourth year associate admitted to

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practice in Washington. He received his juris doctorate, magna cum laude, from Gonzaga

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University School of Law. Mr. Merriman is a member of the firms litigation practice with a

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focus on privacy and security issues. He defends Internet and technology clients against
malicious Internet behavior, such as illegal spamming and phishing, and is experienced in Internet

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forensic work and managing cease and desist actions. Mr. Merrimans responsibilities included
researching legal issues, drafting documents, and managing other day-to-day litigation tasks. Mr.
Merrimans billing rate is $395 per hour.
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Joel Y. Higa: Joel Y. Higa has been a paralegal since 2011 and is currently a

paralegal and internal Internet investigator in the commercial litigation department at Perkins
Coie. Mr. Higa has 4 years of experience investigating violations of Facebooks platforms and

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terms. Mr. Higa has worked extensively on this case, and his responsibilities have included
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DECLARATION OF JUDITH B. JENNISON

ISO DAMAGES FOR DEFAULT JUDGMENT
Case No. 14-cv-02323

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investigating Mr. Grunin and his whereabouts, managing documents, and handling day-to-day

litigation tasks. Mr. Higas billing rate is $200 per hour.

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A true and correct copy of a breakdown of time spent by each timekeeper on each

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of the general categories mentioned is attached as Exhibit A.
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The total litigation fees (excluding pre-litigation investigation and demand letters)

for the attorneys and paralegals mentioned above are $317,841.50.

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The litigation costs include professional services fees for private investigation of

Mr. Grunins activities and whereabouts, messenger fees, service costs, filing fees, travel costs

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and other miscellaneous costs for a total of $8,287.61. A true and correct breakdown of these

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costs by category is attached as Exhibit B.

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31.

Based upon my experience and knowledge of the hourly rates charged by attorneys

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with comparable experience who are practicing in firms of comparable size and stature to Perkins

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Coie, the hourly fees we have charged to Facebook are in the same range as those that would

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routinely be charged by similarly situated attorneys for the same work. This case focused on the

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ever-changing technologies and security measures employed on the Internet. It also involved

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developing areas of the law. Litigating these novel issues successfully requires unusual effort and
skill.

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In sum, it is my opinion that the time and labor incurred, though higher than would

be expected in the typical default case, is reasonable under the circumstances of this case. In

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addition, it is my opinion that the related hourly rates charged by my firm for these timekeepers

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are reasonable in this context. It is also my opinion that this fee request satisfies the criteria set

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forth in Rule 1.5 of the Rules of Professional Conduct.

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DECLARATION OF JUDITH B. JENNISON

ISO DAMAGES FOR DEFAULT JUDGMENT
Case No. 14-cv-02323

Case3:14-cv-02323-WHA Document80 Filed01/14/15 Page8 of 8

I declare under penalty of perjury under the laws of the United States that

the foregoing is true and correct.

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DATED this 14th day of January, 2015, at Seattle, Washington.

By:

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/s/ Judith B. Jennison

Judith B. Jennison, Bar No. 165929
JJennison@perkinscoie.com

Attorneys for Plaintiff

Facebook, Inc.

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DECLARATION OF JUDITH B. JENNISON

ISO DAMAGES FOR DEFAULT JUDGMENT
Case No. 14-cv-02323

Case3:14-cv-02323-WHA Document80-1 Filed01/14/15 Page1 of 1

ExhibitAFEES

TimekeeperBreakdown
Jennison,
Judith
$655/hr

Cutler,Joseph
$545/hr

Berlin,
Hayley
$410/hr

Merriman,
Steven
$395/hr

Higa,Joel
$200/hr

Total

TaskCategory

Total
Hours

TotalBilled

ResearchandDraftComplaint
CaseManagement
Grunin'sFilings,Default,SetAside

139.1
122.3
162.3

$58,908.50
$60,149.00
$80,751.50

7.1
20.3
32.2

26.1
50.6
48.6

8.9
40.7
77.1

87.1
2.3
3.5

9.9
8.4
0.9

139.1
122.3
162.3

MotionforDefaultJudgmentandDamages

232.4

$118,032.50

47.6

83.8

96.3

3.9

0.8

232.4

Totals

656.1

$ 317,841.50

107.2

209.1

223

96.8

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656.1

Case3:14-cv-02323-WHA Document80-2 Filed01/14/15 Page1 of 1

EXHIBITBCOSTS

PerkinsCoieCosts
Facebookv.Grunin

CostCategory
Airexpresscharge
Airfare
Certificateofgoodstanding
ComputerResearch
Conferencemeals
Courtexpensemisc
Localtravelexpense
Messengercharges
Messengerservice
Other
ProHacVice
Professionalservicesother(investigators)
Specialpostage
Travelexpense
Travelexpensemeals
GrandTotal

Amount
$ 118.06
$ 866.13
$ 10.00
$ 11.00
$ 15.23
$ 400.00
$ 157.40
$ 113.50
$ 100.00
$ 47.00
$ 305.00
$5,150.56
$ 37.13
$ 790.31
$ 166.29
$ 8,287.61