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      1         IN THE HIGH COURT OF JUSTICE         Claim No. HC 08 C00441
                CHANCERY DIVISION
      2         INTELLECTUAL PROPERTY

      3                                           Royal Courts of Justice
                                                  Strand, London WC2A 3LL
      4
                                                 Tuesday, 24th November 2009
      5

      6                                    Before:

      7                               MR. JUSTICE ARNOLD

      8                                ---------------

      9         BETWEEN:

     10                        (1) i-CD PUBLISHING (UK) LIMITED
                                (2) CARLENE INVESTMENTS LIMITED
     11               (a company incorporated under the laws of Guernsey)
                                   (3) WASABI ONLINE LIMITED
     12                       (formerly known as PASSADO LIMITED)
                                                                   Claimants
     13                                     - and -

     14                               (1) ALBERT POPKOV
                                   (2) ODNOKLASSNIKI LIMITED
     15                              (3) OOO ODNOKLASSNIKI
                       (a company incorporated under the laws of Russia)
     16                                                            Defendants
                                            - and -
     17
                              ALASTAIR DUNCAN HADFIELD CRAWFORD
     18                                                            Third Party

     19

     20                                ---------------

     21             (Computer-aided Transcript of the Stenograph Notes of
                             Marten Walsh Cherer Ltd., 6th Floor,
     22                    12-14 New Fetter Lane, London EC4A 1AG.
                    Telephone No:  020 7936 6000.  Fax No:  020 7427 0093)
     23                       e-mail: info@martenwalshcherer.com)

     24                                 ---------------

     25










      1

      2
                MR. JAMES MELLOR QC, MR. SIMON DEVONSHIRE QC and
      3               MR. JAMES WHYTE (instructed by Messrs. Wedlake Bell)
                      appeared for the Claimants and the Third Party.
      4
                MR. CHARLES SAMEK QC, MR. BRIAN LACY and
      5               MS. ANNA EDWARDS-STUART (instructed by Messrs. Bird &
                      Bird LLP) appeared for the First Defendant.
      6
                MR. MICHAEL BLOCH QC, MR. TOM MITCHESON, and
      7               MR. JAMES WALMSLEY (instructed by Messrs. Nabarro LLP)
                      appeared for the Second and Third Defendants.
      8

      9
                                       ---------------
     10                                   PROCEEDINGS
                                            DAY ONE
     11                                 ---------------

     12

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     25









     1                               MR. MELLOR - OPENING

     2      MR. MELLOR:  May it please your Lordship.  I appear with

     3          Mr. Devonshire and Mr. Whyte for the claimants.  My learned

     4          friend Mr. Samek, Mr. Lacey and Ms. Edwards-Stuart appear for

     5          Mr. Popkov.  In the middle Mr. Bloch, Mr. Mitcheson and

     6          Mr. Walmsley appear for the corporate defendants.

     7                My Lord, we recognise that any judge reading into this

     8          case is faced with a fairly daunting task.  It may be sensible

     9          to start by enquiring how far your Lordship has got with your

    10          pre-reading.

    11      MR. JUSTICE ARNOLD:  I have read everything that was on the

    12          reading list.  I will confess straightaway that by the time

    13          I got to the end of the reading list I had the distinct

    14          feeling I had forgotten what I had read at the start of the

    15          reading list; but everything has been read.

    16      MR. MELLOR:  My Lord, we are very grateful for that.  From your

    17          Lordship's indication, we apprehend that you have not yet had

    18          an opportunity to get into any of the contemporaneous

    19          documents.

    20      MR. JUSTICE ARNOLD:  No, save that I have looked at the employment

    21          documents in bundle 12.

    22      MR. MELLOR:  Thank you very much.  My Lord, I think my plan in

    23          opening was to introduce your Lordship to at least some of the

    24          key documents in the case.  My Lord, perhaps I can indicate

    25          where I intend to go in my opening.  It will be apparent to


                                              1









     1                               MR. MELLOR - OPENING

     2          your Lordship that much in this case turns on whether

     3          Mr. Popkov owed fiduciary duties to one or more of the

     4          claimants and, indeed, the extent of those duties.  My Lord,

     5          we say we have a powerful case that he did owe fiduciary

     6          duties to the claimants in a number of respects and we set

     7          those out in our skeleton.  Your Lordship will already know

     8          that to examine our case and to examine the defendants'

     9          countervailing arguments a fact-intensive enquiry is required.

    10          It may well be, my Lord, that it is only after the facts have

    11          been reviewed that it may be profitable to start to debate

    12          some of the issues of law that arise in this case.  So my

    13          Lord, I was not going to take your Lordship through all of the

    14          law that is in our skeleton.  Indeed, I was not proposing to

    15          rehearse the contents of our skeleton in my opening.  I was

    16          proposing to add to it.

    17      MR. JUSTICE ARNOLD:  That is fine.

    18      MR. MELLOR:  My opening will devote quite some time to addressing

    19          your Lordship on the facts and after I have done that, I will

    20          turn to just a few of what we would say are the plainer issues

    21          of law to see if we can dispense with those at an early stage.

    22                My Lord, I propose to deal with the facts first.

    23      MR. JUSTICE ARNOLD:  Before you get too heavily into the facts,

    24          I would like to get what I might call housekeeping matters out

    25          of the way first if we can.  Where do we stand on your


                                              2









     1                               MR. MELLOR - OPENING

     2          application to re-re-amend particulars of claim and to adduce

     3          the new evidence?  Is that in issue?

     4      MR. MELLOR:  My Lord, I understand it is in issue.  I had a quick

     5          discussion with my learned friend Mr. Bloch but not with

     6          Mr. Samek about this.  As I indicated to Mr. Bloch, I was

     7          proposing to deal with those housekeeping issues towards the

     8          end of my opening because it will be easier for your Lordship

     9          to rule on those issues once we have a better grip on the

    10          facts.  So if that is convenient for your Lordship, I propose

    11          to deal with those towards the end of my opening.  Sorry,

    12          I should have mentioned that.

    13      MR. JUSTICE ARNOLD:  Could I make a few enquiries on other

    14          housekeeping points.  Notwithstanding the large number of

    15          bundles I do not seem to have had any authorities yet.  I hope

    16          that is on the way.

    17      MR. MELLOR:  Your Lordship should have, I am afraid, ten bundles

    18          of authorities.  I received mine yesterday.

    19      MR. JUSTICE ARNOLD:  That must be a record, at least as far as

    20          I am concerned.  My clerk is just pointing out to me that

    21          there are two boxes that have recently arrived but have not

    22          actually made their way to me.  I see them sitting there in

    23          the corner, now I know what they are.

    24      MR. MELLOR:  We may have cause to open maybe a couple of those

    25          files tomorrow morning.


                                              3









     1                               MR. MELLOR - OPENING

     2      MR. JUSTICE ARNOLD:  Very good.  Timetable?

     3      MR. MELLOR:  My Lord, my diligent junior, Mr. Whyte, has a

     4          detailed timetable.  I think so far as immediate planning is

     5          concerned, my Lord, I expect my opening to last a day, perhaps

     6          a little bit more.  I understand that each of my learned

     7          friends has an opening of about an hour.

     8      MR. SAMEK:  My Lord, no, not from me.

     9      MR. JUSTICE ARNOLD:  You do not propose to make an opening at all?

    10      MR. SAMEK:  No, my Lord, it is there in writing and we just want

    11          to get on with the evidence.

    12      MR. MELLOR:  Thank you for that clarification.  I understand my

    13          learned friend Mr. Bloch none the less has an hour in opening.

    14          Then, my first witness will Mr. Alastair Crawford and the

    15          cross-examination estimate for him is five days.

    16      MR. JUSTICE ARNOLD:  I saw that mentioned in your skeleton

    17          argument.  That I think is going to require some discussion

    18          because at the moment I do not quite see why that should be

    19          necessary.

    20      MR. MELLOR:  My Lord, we entirely understand your Lordship's

    21          point.  My Lord, whether it is five days or hopefully ----

    22      MR. JUSTICE ARNOLD:  More generally, leaving aside the specifics

    23          of that particular witness, have you all exchanged

    24          cross-examination estimates for all the witnesses and do you

    25          have an order of witnesses planned?


                                              4









     1                               MR. MELLOR - OPENING

     2      MR. MELLOR:  Yes, my Lord, my learned friends have had my order of

     3          witnesses I think at least a week ago.  We do have a trial

     4          timetable.  It almost certainly needs some revision, depending

     5          on where we get to with Mr. Crawford.  I think your Lordship

     6          may have seen certain letters from Bird & Bird in the lead up

     7          to trial, certainly they were writing to the Listing Officer.

     8          The estimate for trial was going up and up.  My Lord, those

     9          estimates were not agreed with us and we are concerned about

    10          the estimates.  They seem to be approaching six weeks now.

    11          Bird & Bird were predicting that we would not reach the expert

    12          evidence before Christmas.  My Lord, we may need to consider

    13          that towards the end of the opening to see if your Lordship

    14          wishes to undertake some case management.

    15      MR. JUSTICE ARNOLD:  I think we do need to consider how best to

    16          manage the trial so as to get through the material in the most

    17          efficient way.

    18      MR. MELLOR:  Indeed.

    19      MR. JUSTICE ARNOLD:  I appreciate it is an important case for all

    20          concerned and I appreciate that there are quite a number of

    21          witnesses and quite a lot of documents, but even so, I would

    22          hope that we could get through things in less than six weeks.

    23      MR. MELLOR:  Yes.

    24      MR. JUSTICE ARNOLD:  That does all rather depend on timetabling,

    25          so I think at some point we are going to have to look at the


                                              5









     1                               MR. MELLOR - OPENING

     2          timetable.

     3      MR. MELLOR:  My Lord, perhaps I can suggest that overnight we

     4          finalise or just dig out the timetable that we have and

     5          perhaps we can ----

     6      MR. JUSTICE ARNOLD:  All right, let's discuss that tomorrow.

     7          I have noticed that we have at least two witnesses whose

     8          witness statements were made in Russian.  I take it,

     9          therefore, we are going to have interpreters at least for

    10          those witnesses.  Any others?

    11      MR. MELLOR:  So I understand, my Lord, yes.

    12      MR. JUSTICE ARNOLD:  I also notice that we have some witnesses who

    13          are resident in other jurisdictions.  Is it intended that any

    14          of them should give evidence by videolink?  Because nobody has

    15          approached me for an order.

    16      MR. MELLOR:  No, my Lord, at the moment we are endeavouring to get

    17          the witnesses to travel here.  If the position changes then,

    18          of course, we will raise the question of videolink between

    19          ourselves but also with your Lordship.

    20      MR. JUSTICE ARNOLD:  Very good.  Then finally, I think on my list

    21          for the moment, I have not yet had electronic copies of the

    22          witness statements and experts' reports and I would like to

    23          have those, please.

    24      MR. MELLOR:  My Lord, certainly, we have, I hope, searchable PDFs.

    25      MR. JUSTICE ARNOLD:  I would rather have them in Word format if


                                              6









     1                               MR. MELLOR - OPENING

     2          that can be provided.  Failing that, then I will take

     3          searchable PDFs, but in my experience searchable PDFs tend to

     4          be temperamental.

     5      MR. MELLOR:  I think it depends whether you want the

     6          cross-references written on or not.

     7      MR. JUSTICE ARNOLD:  I am not bothered about the cross-references.

     8      MR. MELLOR:  My Lord, the Word documents will be provided.  I have

     9          just been handed our trial estimate, so I do not know if your

    10          Lordship would like to glance at it now?

    11      MR. JUSTICE ARNOLD:  Why not?  Let's have a quick look and we can

    12          at least get an initial impression.  (Same handed)

    13      MR. MELLOR:  In fact, my Lord, it reminds me of a point that has

    14          recently arisen about the availability of one of our

    15          witnesses, Mr. Salzbrunn, because he has indicated he is

    16          involved in a very big project and he can only come on

    17          14th December.  My Lord, that is very likely to be after the

    18          remainder of my witnesses have finished and so, my Lord, we

    19          will be seeking their permission to interpose him at a

    20          suitable point.

    21                My Lord, you can see the order of my witnesses there.

    22          What we have done, we have inserted the cross-examination

    23          estimates from my learned friends on the basis that 4.5 hours

    24          represents a useful day's time.  That may be a slight

    25          underestimate, my Lord, but it is the working rule in this


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     1                               MR. MELLOR - OPENING

     2          schedule.

     3      MR. JUSTICE ARNOLD:  Yes, that is fine.

     4      MR. MELLOR:  My Lord, at the moment, Mr. Crawford is down for four

     5          days with Mr. Samek and one day with Mr. Bloch.

     6          Mr. Proudnikov is next and your Lordship sees how the

     7          substantial witnesses are really Mr. Crawford and Mr. Marsden.

     8          So Mr. Marsden is down for a day plus.  My Lord, we have put

     9          Mr. Popkov down for three days cross-examination, which

    10          I think our estimate for Mr. Popkov will in some ways depend

    11          on the time spent with Mr. Crawford.

    12      MR. JUSTICE ARNOLD:  Yes, I can understand that.  Certainly, if we

    13          stick to this kind of timetable, then that is likely to lead

    14          to at least some of the experts going into next term.

    15      MR. MELLOR:  Yes.

    16      MR. JUSTICE ARNOLD:  I would have thought it is desirable, if we

    17          possibly can, to complete the evidence this term.  Now, if

    18          that is not possible, then it is not possible and we will

    19          proceed accordingly.  I would ask counsel to put their heads

    20          together to see whether it is not possible to achieve that.

    21          I appreciate at this stage of the trial everything is still a

    22          little bit fluid and that things will bed down as we go on and

    23          I appreciate that estimating cross-examination is not a

    24          science and that allowance must be made for those whose mother

    25          tongue is not English and the fact that witnesses are not


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     1                               MR. MELLOR - OPENING

     2          always direct in answering questions and, no doubt, injury

     3          time from the judge too.  Even allowing for all of those

     4          factors, I would hope that you could see your way to agreeing

     5          a timetable that would give us at least a chance of completing

     6          the evidence by the end of term and then we could resume for

     7          closing submissions next term.  That would seem to me to be a

     8          sensible aim to try and achieve.  Whether it is feasible, as

     9          I say, I do not know, but I would ask you to at least talk

    10          about it and see where you get to.

    11      MR. MELLOR:  Let's do that, my Lord, and, as you say, see where we

    12          get to.

    13                My Lord, so to the facts.  What I am attempting to do in

    14          my opening is to divide the timeline into significant distinct

    15          periods.  My Lord, rather than read out a long list of those

    16          periods, let me just dive in with the early years, which are

    17          effectively 1999, 2000 and most of 2001.  There is only a very

    18          little to say about these early years but it is none the less

    19          an important period because in February 1999 Mr. Popkov

    20          started working as a freelance computer programmer for i-CD

    21          and Quantum Art in Russia was newly incorporated in the year

    22          2000 and Mr. Popkov has always been very closely associated

    23          with Quantum Art in Russia.

    24                Your Lordship knows that at Mr. Crawford's instigation,

    25          Mr. Popkov was secured a work permit and he commenced his


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     1                               MR. MELLOR - OPENING

     2          employment with i-CD in the UK on 22nd May 2000.  In those

     3          early years, his duties were to transform i-CD's business from

     4          its previous CD-based business.  My Lord, i-CD in the early

     5          years built its business on a directory enquiries compact disc

     6          product and the purpose of Mr. Popkov being employed was to

     7          develop the 192.com directory enquiries website.  That took

     8          place and it is no exaggeration to say it transformed the

     9          business of i-CD from the CD product business to the 192.com

    10          directory enquiries website business, and the website business

    11          proved to be very successful.  The website was extremely

    12          successful.

    13                My Lord, at that stage i-CD was a relatively small

    14          company and Mr. Popkov was proving himself to be an essential

    15          part of that company.  It is in those early years that he

    16          gained the trust and the confidence of Mr. Crawford.  That is

    17          where their relationship was built up.

    18                So, my Lord, those early years are an important part of

    19          the story.  We next move to the start of the claimant's

    20          interest in social networking sites.  My Lord, this began in

    21          2001 and it may be best to start by showing your Lordship a

    22          business plan which your Lordship will find in Bundle 13A

    23          starting at page 9.

    24      MR. JUSTICE ARNOLD:  Yes.

    25      MR. MELLOR:  Your Lordship will see that this is an i-CD business


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     1                               MR. MELLOR - OPENING

     2          plan dated 29th October 2001 and at this stage the social

     3          networking business was referred to as the Alumni Project

     4          (AP).  My Lord, page 10 is a subsection:  "What is the Alumni

     5          Project? The concept is simple,.  AP is a database of all

     6          national Schools and Universities in a country."  Sorry, it is

     7          13A page 9.  I was also on page 10, section 2.1.  Your

     8          Lordship has no doubt read that.

     9                Your Lordship will note section 2.4, Huge Barrier to

    10          Entry on the next page:  "Once a site has achieved a certain

    11          threshold of users, giving it a real intrinsic value, it is

    12          very difficult for another start-up site to challenge their

    13          market position; unable to attract a user to sign up with

    14          their empty site over a site that is already valuable with

    15          data and traffic.  We believe this threshold is approximately

    16          1% of the internet population."  Your Lordship will recognise

    17          that as being an issue that is hotly in issue in this case and

    18          debated amongst the so-called SMM experts.

    19                My Lord, section 2.7 over the page.

    20      MR. JUSTICE ARNOLD:  I cannot resist.  I was trying to resist and

    21          I cannot.  You say "so-called."  Given that you have adduced

    22          evidence from such an expert, what precisely is the inwardness

    23          of that epithet?

    24      MR. MELLOR:  My Lord, no, it is nothing more than the title, the

    25          social media and marketing experts.  I was not intending to


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     1                               MR. MELLOR - OPENING

     2          denigrate their skills.  My Lord, over the page on page 12 the

     3          strategy of AP within i-CD:  "Existing Alumni projects all

     4          share the same two problems.  The Ramp up Period and then the

     5          value, at B.  Then i-CD's solution over the page, this was the

     6          proposal at that point, and your Lordship sees in the third

     7          line they proposed a simple pop-up to present to users.

     8                My Lord, this pop-up was actually coded over the

     9          Christmas period and launched in early January and it was

    10          really the precursor to the writing and launch of Passado v1.

    11          This is the pop-up that is discussed in some of the evidence.

    12          The purpose of the pop-up was to gather people's details,

    13          collect those in a database and as you see in the final part

    14          of that paragraph, it says:  "192.com servers are able to

    15          collect the database  allowing the AP site to launch with an

    16          initial 200,000 members - critical mass."  So the idea was to

    17          give the social networking site, the Alumni Project, a

    18          kick-start with this pop-up idea.

    19                My Lord, over the page on pages 14 and 15, you will see

    20          under section 2.8 the initial territory targets of AP and

    21          Germany is head of the queue, not least because it had a very

    22          high penetration of internet users at that time.  Italy,

    23          Spain, and France in the second group and then Russia, over

    24          the page, was identified as a specific target, not least

    25          because of a very large number of inhabitants and although the


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     1                               MR. MELLOR - OPENING

     2          number on line was far less than in Germany and Italy, it was

     3          expected to rise very swiftly.  My Lord, Russia was always a

     4          target for the i-CD social networking website.

     5          Notwithstanding Mr. Popkov's attempts to say that Russia fell

     6          out of the picture, it never did.  In fact, it does not make

     7          sense for Russia to fall off the radar for a project of this

     8          nature.

     9                My Lord, if your Lordship would just turn on a couple

    10          more pages to 17(1A) and 17(1B) your Lordship will see two

    11          pages which report on some investigations under the heading,

    12          "Russia of Odnoklassniki.com, mates.ru and classmates.ru.  My

    13          Lord, these two pages were the result of enquiries conducted

    14          by Mr. Popkov at the direction of Mr. Crawford as to the state

    15          of social networking sites in Russia and Eastern Europe.

    16                If your Lordship turns on one further page to 17(1C),

    17          your Lordship will see a full report which was from November

    18          2001 detailing Friends Reunited sites worldwide and the two

    19          pages we have just looked at on Russia are at pages 15 and 16

    20          of the report.

    21                My Lord, the point to note for the moment is the

    22          reference to Odnoklassniki.com because that becomes

    23          significant when we come, in early January, to Mr. Popkov's

    24          registration of what has been called the first domain name in

    25          this case, Odnoklassniki.ru.  He says he does not remember the


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     1                               MR. MELLOR - OPENING

     2          circumstances in which he registered that domain name.  We say

     3          it is clear from this report and other circumstances around

     4          that time that he registered it because of this research

     5          undertaken for the claimants into social networking sites in

     6          Russia and Eastern Europe; and indeed, he registered that

     7          first domain name for the claimant.

     8      MR. JUSTICE ARNOLD:  When you say "for", do you mean he was an

     9          agent stricto sensuo?

    10      MR. MELLOR:  Yes.  He did it because of the tasks that he had been

    11          assigned when researching the social networking sites in

    12          Russia.  My Lord, that will become more apparent when we touch

    13          on some of the details of what was happening around this time

    14          because your Lordship has seen the results of the research

    15          that Mr. Popkov carried out and, indeed, that resulted in

    16          contact being made between i-CD and mates.ru, so discussions

    17          took place, I think Mr. Larter and Mr. Popkov were in Russia

    18          in December 2001 and they met with mates.ru.  My Lord, I think

    19          we can put Bundle 13A away.

    20                What was happening around this time was that i-CD was in

    21          serious negotiations to purchase Friends Reunited.  My Lord,

    22          in fact what happened was Friends Reunited were undergoing the

    23          sort of viral growth that we see in the later Odnoklassniki

    24          website and that as a result of that viral growth the price of

    25          the Friends Reunited business was increasing all the time.


                                              14









     1                               MR. MELLOR - OPENING

     2          Although i-CD undertook due diligence into the Friends

     3          Reunited business and Mr. Popkov was involved in investigating

     4          the technical side of the Friends Reunited business,

     5          eventually i-CD got priced out of that deal by around December

     6          2001.

     7                As your Lordship has seen, i-CD were investigating the

     8          possible purchase of other social networking websites in

     9          Europe and Russia.  Hence, the meeting with mates.ru.  My

    10          Lord, eventually those efforts resulted in the purchase of, at

    11          that time, quite a small social networking website in Germany,

    12          Passado.de and that purchase went through in very early

    13          January 2002.

    14                My Lord, running side by side the investigations of

    15          purchase of other social networking websites was the pop-up

    16          that we saw in the business plan.  Mr. Popkov was delegated

    17          the task of programming that pop-up.  In his witness statement

    18          he is a little vague as to when that actually happened but we

    19          can pin it down to December and early January because when

    20          Mr. Popkov was in Russia, he was talking to a designer called

    21          Dmitry Utkin about the design of the pop-up for registration

    22          and there is an e-mail on 20th December 2001 concerning that.

    23                My Lord, on 24th December 2001, Mr. Popkov went to

    24          Russia and he says he was on his holidays until 8th January

    25          2001.  Over that time on 4th January he says that he was idly


                                              15









     1                               MR. MELLOR - OPENING

     2          browsing the internet, he noted that Odnoklassniki.ru was free

     3          and that as I have mentioned earlier, he cannot remember now

     4          what prompted him to register it.  That is paragraph 78 of his

     5          witness statement.

     6                It would appear that he did notice that it was free on

     7          4th January 2002.  That was clearly a working day for

     8          Mr. Popkov and for the i-CD business and there are a large

     9          numbers of e-mails in Bundle 11A where Mr. Popkov was

    10          exchanging e-mails with various i-CD personnel on work

    11          matters.  In one of those e-mails, and, my Lord, perhaps we

    12          should pick it up, Bundle 11A page 45 ----

    13      MR. JUSTICE ARNOLD:  Why does it matter whether it is a working

    14          day or not?

    15      MR. MELLOR:  My Lord, it may well not, but I think part of

    16          Mr. Popkov's case is that he seems to think it is important

    17          that he did this whilst on holiday in Russia.  We are simply

    18          pointing out he was not on holiday; he was certainly

    19          undertaking work for i-CD in Russia on 4th January.

    20      MR. JUSTICE ARNOLD:  He may have been both.  It might have been

    21          during his holiday period and yet he may have been spending

    22          part of his time working.

    23      MR. MELLOR:  To be clear, our case is that he was on i-CD business

    24          on 4th January.

    25      MR. JUSTICE ARNOLD:  Is it your case that he was not on holiday


                                              16









     1                               MR. MELLOR - OPENING

     2          during that period?

     3      MR. MELLOR:  He was on holiday over part of Christmas, but

     4          particularly when he travelled to Moscow on 7th January and

     5          actually completed the registration on 8th January, he was

     6          certainly there on i-CD business and his expenses were paid by

     7          i-CD.

     8                If your Lordship would take Bundle 11A and turn to

     9          page 45.

    10      MR. JUSTICE ARNOLD:  Yes.

    11      MR. MELLOR:  This is Mr. Popkov sending an e-mail on 4th January

    12          and it is one of a number of e-mails on that day.  He is

    13          sending it to Mr. Crawford:  "Subject:  Moscow plans" and your

    14          Lordship sees further down:  "I'm going back to Moscow on

    15          Monday, it will be Christmas here."  Christmas in Russia was

    16          on 7th January that year.  "Then I'm flying to London Tuesday

    17          evening (to change this I need to upgrade ticket what is not

    18          expensive either..about 130 pounds).  For now my plans for

    19          Tuesday" -- that is 8th January -- "are to meet Slava and

    20          Dmitry" -- that is Slava at Quantum Art, Dmitry is the

    21          designer of the pop-up -- "and another development team I

    22          found recently and visit .ru domains registration office in

    23          Moscow to open account there."

    24                Mr. Crawford cannot remember precisely what gave rise to

    25          this.  It is quite likely that he spoke to Mr. Popkov on the


                                              17









     1                               MR. MELLOR - OPENING

     2          phone that day but Mr. Popkov really had no reason to report

     3          to Mr. Crawford that he was visiting the .ru domain's

     4          registration office to open an account other than because he

     5          was doing it on behalf of i-CD.  So, my Lord, on 8th January,

     6          the application for odnoklassniki.ru was completed.

     7                My Lord, one thing we will have to explore in evidence

     8          is whether the cost of that domain name registration fell

     9          within the cash expenses that Mr. Popkov claimed for over that

    10          trip.  We say it is very likely that it did because

    11          Mr. Popkov, when we examine his expenses, he claimed for just

    12          about everything.  He had certainly withdrawn more than enough

    13          cash from cash machines on that trip, which appear on his

    14          expense forms, to cover the cost of that domain registration.

    15          My Lord whether the cost of that domain name registration was

    16          charged to i-CD or not does not really affect our case that

    17          Mr. Popkov registered that domain name on behalf of i-CD and

    18          since that date he has remained fiduciary in respect of that

    19          (I would put it in inverted commas) "property".

    20      MR. JUSTICE ARNOLD:  If you put it in inverted commas, that is

    21          quite an important question, is it not?  Let's nail down what

    22          your case is.  Is it your case that it is property?

    23      MR. MELLOR:  My Lord, no, it is a shows in action.  There is

    24          certainly no obstacle to a shows in action like a domain name

    25          being the subject of a fiduciary duty, a tracing claim, and a


                                              18









     1                               MR. MELLOR - OPENING

     2          claim for main receipt of trust property.

     3                My Lord, with the greatest of respect to Mr. Bloch and

     4          his team, their objections to the domain names, .ru domain

     5          names cannot be the subject of claims in this country is

     6          simply wrong and it does not require any consideration of

     7          Russian law for us to pursue a claim to Russian domain names

     8          in the hands of defendants that are subject to the

     9          jurisdiction of this court.

    10      MR. JUSTICE ARNOLD:  Why do you say Russian law is irrelevant?

    11      MR. MELLOR:  Because, my Lord, we are enforcing fiduciary and

    12          contractual duties under English law in this country.  The

    13          orders we seek in relation to the Russian domain names are

    14          nothing more than the consequences of those causes of action

    15          being established.

    16                My Lord, at the same time that Mr. Popkov was

    17          registering odnoklassniki.ru there were others in i-CD who

    18          were investigating suitable domain names for use in other

    19          countries, so that, of itself, points to a pattern of

    20          registration of suitable domain names, of which

    21          odnoklassniki.ru was obviously considered by Mr. Popkov to be

    22          suitable.

    23                My Lord, although in the early stages of these domain

    24          name registrations it would appear that Mr. Popkov paid cash,

    25          your Lordship will have seen the reference to him opening an


                                              19









     1                               MR. MELLOR - OPENING

     2          account and in due course we will see that that account was

     3          topped up via Quantum Art.  So Quantum Art paid sums to top up

     4          the account and then those sums were charged to i-CD, almost

     5          certainly wrapped up in the invoices that were rendered to

     6          i-CD.

     7                My Lord, one other point about the Odnoklassniki domain

     8          name.  It appears to be common ground that at some point

     9          Mr. Popkov told Mr. Crawford that Odnoklassniki was much

    10          better suited to this type of website in Russia than a Passado

    11          domain name.  Quite when he said this and the circumstances in

    12          which he did it will probably have to be explored in evidence

    13          but it is certainly common ground that at some point

    14          Mr. Popkov told Mr. Crawford that odnoklassniki.ru was a much

    15          better domain name for this type of website than Passado,

    16          simply because Passado would not mean anything to Russian

    17          internet users, whereas Odnoklassniki has the benefit of being

    18          instantly informative, it means effectively classmates/school

    19          friends in Russian.

    20                Your Lordship may have picked up also that Mr. Popkov

    21          has registered various other domain names in Russia, 09.ru,

    22          the significance of that is 09 is the equivalent in Russia of

    23          192 and your Lordship may see at various points that

    24          Mr. Crawford also asked Mr. Popkov to register (?)kanga.ru in

    25          Russia, unfortunately it had been taken.


                                              20









     1                               MR. MELLOR - OPENING

     2                My Lord, the registration of the domain names was part

     3          of the development of the Passado business and I think the

     4          purchase of that went through on 8th January 2002.  Passado v1

     5          was the development of the existing Passado business and it

     6          occurred relatively swiftly.  The design and the programming

     7          of Passado v1 took place in January and February 2002 and the

     8          Passado v1 was first launched in March 2002.  That was the

     9          site in Germany.  It was extended to Austria in June 2002 and

    10          then in September and October to Italy, Spain, and France.

    11                Your Lordship will understand that Mr. Popkov's duties

    12          and responsibilities in relation to Passado v1 form an

    13          important backdrop to the big debate in this case about what

    14          duties and responsibilities he had on Passado v2.  My Lord, so

    15          far as Passado v1 is concerned, there is a debate between us

    16          and the defendants about precisely what duties and

    17          responsibilities Mr. Popkov had, but at the very least there

    18          are some duties that we are in agreement on, one being that he

    19          had the duty to oversee Quantum Art's work from a quality

    20          perspective.  My Lord, that is nothing more than exactly what

    21          you would expect.  You have an outside developer (Quantum

    22          Art); you have your head developer (Mr. Popkov) inside the

    23          company.  He has a relationship with Quantum Art, in the sense

    24          that he has worked with them and knows the personnel,

    25          including Slava, well.  Most particularly, he is the only


                                              21









     1                               MR. MELLOR - OPENING

     2          person within i-CD who speaks Russian and who has the

     3          technical ability to oversee their software coding from a

     4          quality perspective.

     5                My Lord, bearing in mind the big issues that are going

     6          to arise on Passado v2, your Lordship may wish to note that

     7          the documentary trail which evidences Mr. Popkov's performance

     8          of many of his duties in relation to Passado v1 is either not

     9          to be found, or there is very little that remains.  For

    10          example, one would look in vain for documents which evidence

    11          Mr. Popkov overseeing Quantum Art's software from a quality

    12          perspective and yet, when it comes to Passado v2, the

    13          defendants make a very big play of the lack of documentation

    14          evidencing Mr. Popkov carrying out duties of that nature.

    15                My Lord, although Passado v2 was a bigger project and

    16          there were more people involved, and some of those people may

    17          have effectively removed from Mr. Popkov some of his

    18          non-technical duties, the real point is that there is no

    19          reason why Mr. Popkov's duties should have changed between

    20          Passado versions 1 and 2.  There was greater project

    21          management capability on Passado v2 so that Mr. Popkov was

    22          relieved of any project management role, but my Lord that is

    23          just keeping tabs on what is going on, making sure that tasks

    24          were assigned and ticked off.  But from a technical viewpoint,

    25          there was no reason why his duties should have changed.  Nor,


                                              22









     1                               MR. MELLOR - OPENING

     2          indeed, any reason why anybody at i-CD, especially

     3          Mr. Crawford, would think that his duties had changed.  We

     4          will come to this in more detail a little later, my Lord, but

     5          Mr. Popkov's arguments on Passado v2 seem to vary.  In

     6          essence, we believe he argues that there was a radical change

     7          in the scope of his duties and responsibilities as between

     8          Passado versions 1 and 2 and we say that is wishful thinking

     9          on his part.

    10                My Lord, I am not going to trouble you with much of the

    11          detail of other developments in 2002 and 2003, but I do wish

    12          to concentrate on one or two points.  Your Lordship will have

    13          read about the bribes arrangement.  My Lord, as far as our

    14          investigations reveal, the earliest indication of this comes

    15          in October 2002.  Your Lordship will see, if your Lordship

    16          would be kind enough to take Bundle 14A, page 11 an e-mail

    17          from Slava to Mr. Popkov on 24th October 2002.  My Lord, I

    18          apologise at the Russian headings to these columns have not

    19          been translated, but if memory serves me right, the first

    20          heading is project and then the fourth heading is the price of

    21          the work done.  The next column is commission expressed as a

    22          percentage, and then the next column is the amount of that

    23          commission and then there are two further columns which

    24          actually have the same numbers as the earlier two columns, and

    25          those are, I think, to record when payments are made.


                                              23









     1                               MR. MELLOR - OPENING

     2          Although this is dated October 2002, your Lordship will see

     3          that it goes back to Passado design, Passado phase 1 and also

     4          Passado Italy, Passado France, Passado Spain and Passado

     5          Autriche.  My Lord it would appear that the arrangement that

     6          is recorded in this e-mail went back to the very beginning of

     7          Quantum Art's work for i-CD.  And we can see that Mr. Popkov

     8          was going to be paid, or was paid, a commission which was

     9          initially 10%, sometimes 15%, sometimes 100%, sometimes 20%,

    10          sometimes 85%.

    11                My Lord, we have managed to find a large number of

    12          e-mails where Slava throughout was telling Mr. Popkov the

    13          payments that would be made to him under the bribes

    14          arrangement.  Your Lordship knows that Mr. Popkov has admitted

    15          taking bribes in the sum of over 50 thousand dollars (all

    16          these figures are in US dollars).  Your Lordship will have

    17          seen from our skeleton that the precise sum that Mr. Popkov

    18          took in bribes has yet to be ascertained.  At various points

    19          in his evidence, he tries to suggest that this bribes

    20          arrangement may have ended before Quantum Art 's work for i-CD

    21          finished at the time that he tendered his resignation in

    22          November 2005.  But my Lord, it is pretty clear that he was

    23          taking bribes from Quantum Art throughout; in other words,

    24          from the start of Quantum Art's work, probably in January

    25          2002, right through to the conclusion in about November 2005.


                                              24









     1                               MR. MELLOR - OPENING

     2                Your Lordship will have seen how Mr. Popkov deals with

     3          this in his witness statement.  He says he now understands it

     4          to be wrong but, my Lord, what he does not deal with in his

     5          witness statement, and what the first defendant's case does

     6          not deal with, are the ramifications of this bribes

     7          arrangement on other aspects of Mr. Popkov's behaviour

     8          because this bribes arrangement affects just about everything

     9          else that Mr. Popkov did.  It led to him disclosing to Quantum

    10          Art confidential e-mails from within i-CD, giving them

    11          advanced notice.  When competitive bidding was undertaken for

    12          the Passado v2 project, Mr. Popkov fed to Quantum Art the

    13          rival bid so that they could ensure they beat it, and when

    14          Quantum Art were filling out the questionnaire relating to the

    15          Passado v2 bid, Slava sent the draft to Mr. Popkov so that he

    16          could comment on it and no doubt improve it so that Quantum

    17          Art could be sure of getting the business.  My Lord, indeed

    18          whole competitive bid situation on Passado v2 was instigated

    19          by Mr. Popkov.  We infer that he instigated this to ensure

    20          that Slava would continue to pay his bribes and so he was

    21          threatening Slava with losing i-CD's business to keep him on

    22          side.  Of course, Slava did stay on side and, therefore,

    23          Mr. Popkov ensured that Quantum Art got the business.

    24                My Lord, one other point relating to events in 2002 and

    25          2003.  The reason for raising this is because at one point


                                              25









     1                               MR. MELLOR - OPENING

     2          Mr. Popkov himself came up with the idea that there should be

     3          a single point of contact on the Passado project between i-CD

     4          and Quantum Art.  My Lord, the need for a single point of

     5          contact on a software project between those who are specifying

     6          the business needs and the programmers is evident.  It is so

     7          that you do not get crossed lines of communication.

     8          Everything is fed through one person and that person can keep

     9          control of the needs and requirements on the business side.

    10                My Lord, when it comes to Passado v2, it would appear

    11          that Mr. Popkov's case places a lot of emphasis on the role of

    12          Mr. Salzbrunn.  He was project manager for Passado v2 and he

    13          appointed himself as the single point of contact between i-CD

    14          and the programming team.  But as we will see in due course,

    15          that did not in any way exclude Mr. Popkov's very important

    16          role in Passado v2.  It simply meant that in project

    17          management terms, Mr. Salzbrunn was the project manager and

    18          was keeping control of the business requirements for the

    19          project.

    20                My Lord, the Passado v1 business continued to expand

    21          through 2003 and one of the territories that remained on the

    22          radar was Russia.  This brings to us the registration by

    23          Mr. Popkov of the second domain name.  This was "Odnoklasniki"

    24          (with a single "s") which is useful for two reasons, one is

    25          because that is the Ukrainian spelling of the word.  It is


                                              26









     1                               MR. MELLOR - OPENING

     2          also extremely valuable for a business of this nature because

     3          it would catch people misspelling Odnoklassniki as they type

     4          it into their web browser.

     5                My Lord, Mr. Popkov registered his second domain name

     6          and it was picked up when what is called the "May schedule"

     7          was being circulated.  My Lord, we can pick up the May

     8          schedule at Bundle 11B, please, starting at page 438.  If your

     9          Lordship has page 438 it is an e-mail from Laurence Crawford

    10          to Laurence Fromme, Mr. Popkov, another employee of i-CD,

    11          Claire Anstee.  The subject is "Alexey needs your help", that

    12          is a reference to Alexey Bushnev who was project manager of

    13          Passado v1 at this time.

    14                Over the pages, my Lord at 439 and 440, this is the

    15          version at that point of the so-called "May schedule."  My

    16          Lord, in row 7 you will see Passado.ru.  The situation at this

    17          point is that Mr. Fromme had registered already a number of

    18          Passado domain names including Passado.ru so that was already

    19          registered.  The jobs that needed doing were "register domain

    20          names (Albert?)" and then in the third column "looks like no

    21          progress in two weeks" and various other tasks for Albert are

    22          in that second column.  There is a comment "Albert, what is

    23          happening here?"

    24                My Lord, we will find out what happened, or what was

    25          happening, at page 448.  Page 448 is an e-mail from Mr. Popkov


                                              27









     1                               MR. MELLOR - OPENING

     2          on 20th May to Alexey Bushnev, Laurence Fromme, Alastair

     3          Crawford, Igor Grinev and Slava:  "Please update the schedule

     4          based on the following.  1. passado.com - registered and

     5          pointed to passado servers (on the 2nd of may).   2.russian

     6          domain name - registered (on 15 jan 2002)".  My Lord that is a

     7          reference to the first domain name, that is odnoklassniki.ru.

     8          -- "alternative name [that is Odnoklasniki.ru] registered on

     9          5th May" 2003.

    10                So, my Lord, further confirmation, we say, that

    11          Mr. Popkov registered both these domain names for i-CD and

    12          although they were registered in his name, he held these

    13          domain names as a fiduciary for the company.  Indeed, later

    14          on, your Lordship may have read that Mr. Crawford was writing

    15          a report for the purposes of various investors in the Passado

    16          business and he asked -- in fact I may have got my dates a bit

    17          mixed up, he may have done this before this date.  My

    18          suspicion was right, my Lord.  This report was in August '02,

    19          29th August '02 and perhaps you can just pick that up in

    20          Bundle 11A, at page 208.

    21                My Lord, 208 is just an e-mail from Mr. Crawford to

    22          himself.  It just puts a date on the document which follows.

    23          It is a report on the current state of Passado.  If your

    24          Lordship turns on to page 212, there is a list by the second

    25          hole punch:  "URL intellectual property we now own" and here


                                              28









     1                               MR. MELLOR - OPENING

     2          Mr. Crawford recorded as odmoklassmiki, classmates in Russian,

     3          and Mr. Crawford said it is very likely he misspelled it

     4          because he was just typing what Mr. Popkov had told him as the

     5          name, hence the misspelling.  But again, very clear evidence

     6          that the domain name was clearly registered and understood by

     7          Mr. Popkov to be the property in so far as there was ownership

     8          of this shows in action the property of i-CD.

     9                My Lord, the last significant event in 2003 was 16th

    10          December 2003, which was when Mr. Popkov signed his service

    11          agreement.  Your Lordship may know that that is the one

    12          contract of employment Mr. Popkov accepts he signed.  My Lord,

    13          I will not take you to that document because your Lordship has

    14          kindly glanced at it already, but one thing I would take you

    15          to is what he said about the significance of that document

    16          when he was explaining to the corporate defendants -- sorry,

    17          explaining to investors in the corporate defendants what had

    18          happened.  If your Lordship would kindly take Bundle 13C and

    19          turn to page 841.

    20      MR. JUSTICE ARNOLD:  Can you enlighten me on what the distinction

    21          is between the 13 bundles and the 11 bundles?  13 describes

    22          dated documents, whereas most of those in 11 seem to have

    23          dates on.

    24      MR. MELLOR:  Your Lordship is absolutely right.  My Lord, I think

    25          it was thought convenient to extract out of the general


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     1                               MR. MELLOR - OPENING

     2          chronological bundle, which is 11, particular documents which

     3          are in 13.  My Lord, you will also see bundle 14, it is

     4          entitled "group documents" but they are groups of documents,

     5          which are conveniently grouped together.

     6      MR. JUSTICE ARNOLD:  So the net result is that there is not a

     7          chronological bundle of any of the documents?

     8      MR. MELLOR:  No, my Lord, I regret to say that even bundle 11 is

     9          not chronological.

    10      MR. JUSTICE ARNOLD:  All right, so 841?

    11      MR. MELLOR:  841, my Lord.  This is jumping ahead somewhat to

    12          1st March 2007, and this is where Mr. Popkov is explaining to

    13          those interested in investing in the second defendant the

    14          state of play because by this time the claimant's solicitors

    15          had written letters before action to Mr. Popkov and indeed you

    16          will see one of the letters before action, 5th February 2007,

    17          starting at page 838.  In the e-mail on page 841, just drawing

    18          your Lordship's attention to the third bullet point, here he

    19          is talking about his i-CD contract, which is this

    20          16th December 2003 one:  "By the time of signing my i-CD

    21          contract I was not employed by Passado, and in fact I had

    22          agreed to sign it only on the basis what I will have nothing

    23          to do with Passado whatsoever, concentrating on i-CD (192.com)

    24          business only."  My Lord, that is a bare faced lie and that

    25          does not even represent the case that he is running before


                                              30









     1                               MR. MELLOR - OPENING

     2          your Lordship.  As we will see when we look at the documents

     3          surrounding Passado v2, in fact he had the sort of involvement

     4          with Passado v2 that one would expect of the software director

     5          of a company engaged in such a project.

     6                The reason for drawing your Lordship's attention to that

     7          is because it may be at least part of the genesis of the

     8          argument that Mr. Popkov now seeks to make, and it has been

     9          put in various ways.  He says he had almost nothing to do with

    10          Passado v2.  Sometimes he suggests that he was involved on a

    11          few technical issues, apparently the implication being that he

    12          was just being helpful.

    13                My Lord, now we are going to turn to the Passado v2

    14          project with a view to showing your Lordship just how heavily

    15          he was involved in the project.  Your Lordship will have read

    16          in the witness statements, particularly of Mr. Crawford, about

    17          the gestation of the Passado v2 project.  The gestation was

    18          really -- well, it began in 2003.  My Lord, at this point,

    19          I will deal with one of the arguments made by the defendants,

    20          and that is that Passado v2 was, so they allege, very

    21          different from the website that Mr. Popkov launched,

    22          odnoklassniki.ru.  This is simply not true.  The position is

    23          essentially as follows.  Passado v1 was a simple school

    24          reunited website and Odnoklassniki was essentially the same

    25          when it launched.  It was a simple schools reunite website.


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     1                               MR. MELLOR - OPENING

     2                Mr. Crawford and the claimants understood and pursued

     3          the concept of launch simple, then elaborate later.  So my

     4          Lord, the theory is that you build up with your simple website

     5          a substantial body of users.  Then, once you have that

     6          substantial body of users, you provide more sophisticated

     7          networking for them at a later stage.  My Lord, this launch

     8          simple, elaborate later is an idea that is recorded in some of

     9          the Passado presentations that Mr. Crawford gave.  I have no

    10          doubt, because the first defendants have ensured that there

    11          are a very large number of these Passado presentations in the

    12          bundles, that they intend to cross-examine at length on these

    13          documents.  My Lord, I am going to take you to one on

    14          30th June 2003, which is in Bundle 13A at page 307A.  Just to

    15          explain what is being talked about in at least the first few

    16          pages of this presentation, my Lord, Open BC was another

    17          existing website.  What is happening in this presentation is

    18          that Mr. Crawford is drawing a distinction between the way

    19          that Open BC do it and you will see that in the second slide,

    20          they, "...grow a sophisticated network by creating clusters.

    21          The network grows organically within communities", and the

    22          disadvantages, "it needs to start again in each new sector".

    23          Those are expanded in the third slide over the page.  The

    24          Passado model is explained in the first two slides:  "First,

    25          to grow a simple network; a School Network.  The network is


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     1                               MR. MELLOR - OPENING

     2          simple to understand and join", and so on.  You grow your

     3          simple network and by this date Passado is described as having

     4          4.3 million registered users, that is through to April 2005.

     5                Then, my Lord, the second slide on page 307C:  "Then to

     6          overlay the sophisticated network on top of the simple

     7          network.  Member profiles are already half completed.  They

     8          have seen the magic of the simple network.  The new network

     9          spreads more easily across the existing network".  There is

    10          further explanation of how that allows networks to spread

    11          between countries.  My Lord, we accept entirely, subject to

    12          finding another document where it is relevant of the Passado

    13          presentations where this is recorded, this appears to be the

    14          first actual presentation where this business model is spelt

    15          out.  None the less, it is the way that Passado was done.

    16          Your Lordship will see that from the e-mail that accompanied

    17          that presentation, so if your Lordship would put Bundle 13A

    18          away and take out Bundle 11H and turn to page 2892.  This is

    19          an e-mail which was sent just really to get the presentation

    20          that you have just seen prepared, Alastair Crawford is

    21          e-mailing Laurence Fromme and Claudia Helming.  It is all

    22          about getting the presentation finalised for tomorrow, by the

    23          first hole punch:  "I will get a couple of slides put together

    24          by design here to show the different approaches that Open BC

    25          and Passado have taken, namely showing how Open BC network


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     1                               MR. MELLOR - OPENING

     2          spreads and has to start again in every country, versus how we

     3          do it".  So, my Lord, there may be a lot of debate about this,

     4          but we say the start simple, elaborate later idea was i-CD's

     5          approach throughout; it is how they did it and it was how they

     6          did it long before it was recorded in that presentation on

     7          30th June.

     8                My Lord, it is certainly true that Passado v2 was going

     9          to offer quite a lot more functionality to users but, none the

    10          less, the idea was if you were launching Passado in a new

    11          country, you would launch with the simple model, build up the

    12          database of users and then introduce the more sophisticated

    13          product later.

    14                So when Passado v2 was being developed, there were

    15          obviously two different applications for it.  First of all,

    16          you had the existing markets where Passado had already

    17          established itself, principally Germany, France, Spain (where

    18          it was called Mipasado, Italy where it was called

    19          Amiciriuniti.  For new territories the aim would be start

    20          simple and add the more elaborate functionality at a suitable

    21          point once the user base had been established.

    22                My Lord, I am sure that that will be the subject of

    23          furious debate by the first defendant in particular, because

    24          it is an important plank of their case to try and persuade

    25          your Lordship that Odnoklassniki and Passado v2 are different.


                                              34









     1                               MR. MELLOR - OPENING

     2          They are not different.  Passado v2 had more functionality in

     3          it but the base of it was the same thing.

     4                My Lord, so far as the Passado v2 project was concerned,

     5          Mr. Popkov was involved throughout.  The first stage was

     6          deciding, or rather Mr. Popkov recommending, which language

     7          the project should be written in.  My Lord, this decision was

     8          not peculiar to Passado.  It also impacted on the work that

     9          Mr. Popkov was in charge of for 192 and the debate was whether

    10          to rewrite the i-CD software in Java or .NET and, of course,

    11          as I said, Mr. Popkov was investigating this issue both for

    12          192 software and also for Passado software.  Although he tries

    13          to paint the picture in his witness statement that he was not

    14          sufficiently qualified in .NET even to oversee the Passado

    15          project in late summer of 2004, my Lord, in fact he took the

    16          decision early in 2004 to go the .NET route.  It appears that

    17          he diligently researched .NET as a programming language from

    18          about, from at least March 2004 onwards.  My Lord, in his

    19          expense accounts, we can see many Amazon invoices being

    20          charged to i-CD for a large number of books relating to

    21          software, .NET training manuals and so on.

    22                My Lord, I should have said, and I am sure you picked

    23          this up, Passado v1 was written in a language called

    24          ColdFusion.  Perhaps just taking a few steps back, Mr. Popkov

    25          was responsible for recommending to i-CD that their software


                                              35









     1                               MR. MELLOR - OPENING

     2          was initially written in ColdFusion, so in the early stages

     3          Mr. Popkov recommended ColdFusion and the i-CD and Passado v1

     4          were written in ColdFusion.  What Mr. Popkov was considering

     5          in early 2002 was whether to effectively move on from

     6          ColdFusion to either Java or .NET and as I have explained, he

     7          recommended moving to .NET and, of course, Mr. Crawford

     8          accepted his recommendation.

     9                My Lord, the Passado v2 project was being initiated from

    10          around April 2004 and, my Lord, in April 2004 Slava sent

    11          through to Mr. Popkov an early business proposal which he

    12          wanted to submit to i-CD.  My Lord, we can pick that up in

    13          Bundle 11C, page 861.  My Lord, this is an example where Slava

    14          sent a document through to Mr. Popkov for his approval before

    15          he submitted it to Mr. Crawford.  So this one is entitled

    16          "Any.Info Proposal", and your Lordship may just want to flick

    17          through it.  It was a part, or at least a precursor to the

    18          Passado v2 project.  My Lord, later the same day -- so Slava

    19          sends it through to Mr. Popkov at 8.06 in the evening and

    20          turning on to page 871, there is a further version sent

    21          through from Slava to Mr. Popkov at 11.26 that night.  Then

    22          the following day, this is 882, at 11.30 in the morning, Slava

    23          sends the improved business proposal through to Mr. Crawford,

    24          to Mr. Popkov and to Mr. Stefan Salzbrunn.  There are many

    25          examples in the papers of Mr. Popkov doing that -- sorry,


                                              36









     1                               MR. MELLOR - OPENING

     2          Slava doing that with Mr. Popkov, getting his input and

     3          approval, sometimes of costs, etc., before submitting his

     4          proposal to i-CD.

     5                My Lord, at this time, this was the start of the

     6          competitive bid process and Mr. Popkov recommended another

     7          software house in St. Petersburg called Reksoft and we can

     8          see, if your Lordship will turn back to page 821 in the same

     9          bundle, this was an e-mail from Mr. Crawford to Mr. Popkov

    10          actually signed by Mr. Blackburn, Dominic Blackburn:  "Albert,

    11          we need Reksoft to sign this document before we send them any

    12          specs."  That was a nondisclosure agreement.  In due course,

    13          your Lordship may see that Reksoft sent their proposal

    14          through.  Mr. Popkov was involved in assessing their proposal.

    15          He engaged in a conference call with them on 16th June 2004.

    16          My Lord, generally, Mr. Popkov was at this time not only

    17          recommending which software house to go with, but also whether

    18          to stick with ColdFusion or go .NET.

    19                So one of the choices was possibly going with Reksoft

    20          and programming in ColdFusion.  Mr. Popkov also sought to

    21          involve another software house called Xanadu and your Lordship

    22          will see this in the same bundle at page 1007A.  This is an

    23          e-mail from Mr. Popkov on Friday, 11th June 2004.  Your

    24          Lordship may wish to note his e-mail signature by this date

    25          because, of course, in May 2004, he had been appointed


                                              37









     1                               MR. MELLOR - OPENING

     2          software director and he signs himself, "Software Director

     3          i-CD publishing (UK) Limited", and then the three websites are

     4          given, 192.com, mipasado.com and passado.de and, my Lord, he

     5          regularly updated his e-mail signature to accurately reflect

     6          the Passado websites that were in use.  So in due course,

     7          passado.com came on stream and he fairly promptly changed his

     8          e-mail signature to include that.  So throughout he was

     9          representing himself as software director not only of 192.com

    10          but also Passado.

    11                My Lord, this is an e-mail in June.  He is writing to

    12          somebody he obviously knows at Xanadu.ru:  "Alexey hi" -- he

    13          writes in Russian but your Lordship has a translation above

    14          the Russian -- "we are thinking of launching a new project

    15          (not ColdFusion) Stefan Salzbrunn should contact you, he will

    16          be supervising this project.  If you are interested (we are

    17          currently taking bids from various companies), let me know

    18          when it would be best to have a chat about this."  So just a

    19          further indication, my Lord, of Mr. Popkov's role in

    20          recommending/assessing software houses for this project.  My

    21          Lord, I will not go through all the detail of what took place

    22          in the assessment, although there are one or two documents

    23          which are rather revealing, bearing in mind Mr. Popkov's

    24          protestations that he had virtually nothing to do with this.

    25                If your Lordship would kindly turn on to page 1009, this


                                              38









     1                               MR. MELLOR - OPENING

     2          is where Mr. Salzbrunn, who was the project manager, was

     3          sending out apparently rough drafts of documents, various

     4          Passado specifications, Passado terms and differences, etc.,

     5          and of course Mr. Popkov is an addressee of these

     6          specifications.  My Lord, if we turn on to page 1040, we can

     7          see an e-mail some five days later where Mr. Popkov is

     8          commenting on these documents, perhaps later versions of them,

     9          and he is making some pertinent points:  "The requirements

    10          document does not cover backend/reporting/mailing integration

    11          and other components currently implemented, working and used

    12          on passado.  Neither any requirements for third party

    13          (partners and affiliates) integration.  Are these components

    14          going to be part of a new project?"  And Mr. Salzbrunn

    15          responds and in due course that led to another specification

    16          being written for those back end requirements.  So again,

    17          another example of Mr. Popkov being centrally involved, giving

    18          his input to the requirements for this project.

    19                My Lord, as I said, I was not going to grind through all

    20          of the documents which evidence the assessment of the three

    21          software houses.  I am going to jump to one where it is

    22          evident that Mr. Popkov is advising Mr. Crawford as to which

    23          one to go with.  My Lord, for that we need the next bundle

    24          please, 11D, if your Lordship will turn on to 1107.  My Lord,

    25          1107 is some chat, as it is called, which took place on


                                              39









     1                               MR. MELLOR - OPENING

     2          24th June 2004 between Mr. Popkov and Mr. Crawford.  We can

     3          see from the first line that Quantum Art and Reksoft had

     4          submitted their bids by this point and Mr. Popkov reports to

     5          Mr. Crawford:  "Slava in .NET, Reksoft in ColdFusion".

     6          Mr. Crawford says:  "Reksoft are supposed to make a proposal

     7          in .NET as an alternative, but they are saying they cannot set

     8          a bid at the moment because they need more detailed

     9          requirements".  Mr. Popkov says:  "With .NET they cannot

    10          guarantee people availability".  It then continues:  "Can only

    11          start with two developers and add more as the project goes but

    12          not earlier than mid-July".  Mr. Crawford:  "OK, so we forget

    13          Reksoft+.NET."  So, my Lord, just an indication of

    14          Mr. Crawford's reliance on Mr. Popkov's recommendations as to

    15          which house to go with and which language.  Your Lordship will

    16          have read that Mr. Crawford himself is not a programmer and

    17          has never been a programmer, so he is highly reliant on

    18          Mr. Popkov's recommendations.

    19                My Lord, just a few pages further on, page 1181, please.

    20          Again, another indication of just what I was talking about.

    21          Mr. Crawford on 24th June e-mails Mr. Salzbrunn and

    22          Mr. Popkov:  "Hi Stefan, Albert, we now have proposals

    23          from Slava and Reksoft.  Can we get these evaluated overnight

    24          so we can come back to them tomorrow with

    25          questions/counter-offer."


                                              40









     1                               MR. MELLOR - OPENING

     2                My Lord, then we move on just a few days to 2nd July,

     3          page 1235 in this bundle, please.  This is Slava sending to

     4          Mr. Popkov at 10.27 his draft technical proposal on behalf of

     5          Quantum Art, we infer for his final approval because about

     6          half an hour later, we see this at page 1268, we see Slava

     7          sending the final version through to Mr. Crawford,

     8          Mr. Salzbrunn, copied to Mr. Popkov.

     9                My Lord, things moved relatively rapidly at this point

    10          because effectively by this stage, the decision had been taken

    11          to go with Quantum Art on Mr. Popkov's recommendation and if

    12          your Lordship would turn on to page 1316, this is later on

    13          2nd July.  My Lord, what Mr. Crawford has done is put together

    14          an e-mail of heads of terms to send to Slava, but before

    15          sending it to Slava, he passes it by Mr. Salzbrunn and

    16          Mr. Popkov, with a comment "any comments?"  And Mr. Popkov, in

    17          something of a Freudian slip, no doubt, says:  "Looks good for

    18          me", which indeed it would, because he was going to get 10%,

    19          roughly, of the contract price.  Your Lordship sees that

    20          e-mail going off to Slava a little bit later at 1318.

    21                My Lord, there was a commission agreement for this

    22          Passado v2 contract between i-CD and Quantum Art, not between

    23          Passado and Quantum Art, it was between i-CD and Quantum Art,

    24          and if your Lordship would take Bundle 11E, first of all at

    25          page 1656, this is an unsigned copy of the agreement, I think


                                              41









     1                               MR. MELLOR - OPENING

     2          in its first draft.  The reason for taking you to it, my Lord,

     3          is because it just simply shows the approximate time that they

     4          were envisaging at the date of the agreement, it is dated

     5          Monday 9th August, and this copy was actually e-mailed on

     6          25th August.  If your Lordship turns on to 1659, my Lord, your

     7          Lordship sees the stages then envisaged -- alpha by

     8          August 8th, beta by August 31st, final September 20th, 2004.

     9          So at least at this stage, the Passado v2 project was set to

    10          be only about two and a half months, maybe three months in

    11          duration.  Your Lordship may not be massively surprised to

    12          notice that these dates slipped back, so that, as we

    13          understand it, in the final version of the contract, and your

    14          Lordship will find that at 1698 this version was e-mailed on

    15          2nd September.  My Lord, it shows the amendments over the

    16          previous version but in clause 6 at page 1701, although the

    17          alpha date has not moved, beta his slipped back to

    18          8th September and the final version to October 18th.

    19                My Lord, none the less, the Passado v2 project, if it

    20          had run according to plan, would have been three, three and a

    21          half months in duration.  Indeed, my Lord, all the copies of

    22          this agreement record in clause 2.3 that the commission shall

    23          begin on July 5th, 2004.  Your Lordship sees that in any

    24          version of the agreement, for example at page 1700.

    25          Certainly, my Lord, it appears that Quantum Art did get


                                              42









     1                               MR. MELLOR - OPENING

     2          started on 5th July because we have a weekly project plan for

     3          that date.

     4                My Lord, Mr. Popkov was also involved in other aspects

     5          of the Passado v2 project.  One, in particular, was recruiting

     6          a project manager to work, a technical project manager, to

     7          work with the Quantum Art team in Moscow.  My Lord, at this

     8          point, I will hand up a diagram of what we say was the

     9          organisation of the Passado v2 project, although I think this

    10          was sent to my learned friends yesterday.  (Same handed)  My

    11          Lord, this is something that Mr. Crawford explained to me in

    12          the last few days and I found it invaluable to understand what

    13          is going on.  My Lord, I think we have an X bundle and maybe

    14          just so that we do not lose it, this should become X1.  It may

    15          be helpful just to explain to your Lordship what if structure

    16          was.  Your Lordship sees it was something of an international

    17          project.  The two participants of i-CD in London were

    18          Mr. Crawford and Mr. Popkov and we divide their roles as

    19          non-technical for Mr. Crawford and technical for Mr. Popkov.

    20          Mr. Salzbrunn, he came into the Passado project as originally,

    21          he ran a web hosting business called Interlake in Germany.

    22          Interlake hosted the Passado v1 websites and eventually that

    23          led to Mr. Salzbrunn being the technical project manager for

    24          Passado v2.  Although he has technical abilities, in the sense

    25          that he knows how to host a website, he is not a programmer


                                              43









     1                               MR. MELLOR - OPENING

     2          and for this project he was a part-time consultant, split

     3          between Germany and later Florida.

     4                My Lord, then we move to Moscow.  In Moscow there were a

     5          group of people who styled themselves "the Passado team."

     6          They were led by Mr. Fromme, who was a linguist but he did not

     7          speak Russian; so he was, as we have described, a

     8          non-technical project manager.  Other personnel, Claudia

     9          Helming, she was the country manager for Germany and also

    10          consultant.  Mr. Fromme was the only employee of Passado

    11          Limited in this Passado team.  Michael Puetz, he with

    12          Ms. Helming were the original owners of the -- sorry, only

    13          Puetz was an owner of the Passado.de business and so he had a

    14          role in technical support with some project management

    15          focusing on bug identification and testing; again, he was a

    16          consultant.  My Lord, at various times, other people were part

    17          of this Passado team, including other country managers who

    18          were not in Moscow, like Ernesto Bernado.  None of the Passado

    19          team, although they were gathered together in Russia and they

    20          had an office inside Quantum Art's offices, none of them spoke

    21          Russian.

    22                On the technical side you had the various people working

    23          at Quantum Art, specifically the developers were led by Igor

    24          Grinev and there were three other slightly more junior

    25          developers and one float developer, depending on various


                                              44









     1                               MR. MELLOR - OPENING

     2          tasks.  So far as the administration on the Quantum Art side

     3          is concerned, Slava was obviously the boss, he was involved in

     4          negotiating the contract and invoicing and generally running

     5          the team.  Mikhail Chekanov was the technical project manager

     6          for the Quantum Art developers and he was the man who

     7          Mr. Popkov was involved in recruiting and interviewing

     8          candidates for that role.

     9                My Lord, the significance of the colours are set out at

    10          the bottom.  Those, the red boxes indicate people who had

    11          contracts with i-CD only.  It is certainly true to say that

    12          Quantum Art before this time had a maintenance contract with

    13          Passado to run the Passado v1 website and to fix bugs

    14          concerned with that.  Mr. Crawford and Mr. Salzbrunn had

    15          contracts with both i-CD and Passado or Carlene, because in

    16          2002, the Passado business, your Lordship will recall, had

    17          been spun out from i-CD to Carlene.  My Lord, that is

    18          reflected in the notes on the second page, where we have

    19          attempted to draw out some of what one might call

    20          complications as to the relationship between i-CD and Passado.

    21      MR. JUSTICE ARNOLD:  Before we get on to that, I notice that there

    22          is no line from the Popkov box to the Passado team box.

    23          I take it that is deliberate?

    24      MR. MELLOR:  Yes, my Lord, I think it is fair to say that

    25          anything, any comments, any communications between Mr. Popkov


                                              45









     1                               MR. MELLOR - OPENING

     2          and the Passado team would have gone through Mr. Salzbrunn.

     3          At least that, I think, was the intention, but probably also

     4          the reality as well.  My Lord, the point about the Passado

     5          team is that they were on the non-technical side dealing with

     6          the user interface, the look of the website.  None of them had

     7          the ability to review code which was written by Quantum Art.

     8          Indeed, my Lord, the only person who had the ability to review

     9          code written by Quantum Art was Mr. Popkov.  So, my Lord, in

    10          the notes, we have drawn attention to various documents.

    11          I will not take you to all of those now, but it gives you

    12          hopefully a convenient group of references which relate or

    13          stand behind the organisation chart that we show on page 1.

    14                My Lord, in July 2004, as programming was just getting

    15          going, or at least the initial stages, Mr. Popkov made two

    16          visits to Moscow.  The first one was the 10th to 13th July of

    17          2004.  My Lord, just before he went, on 9th July (and I am

    18          afraid for this we need to go back to bundle 11D, page 1326),

    19          these are a series of e-mails on 9th July between people at

    20          Quantum Art and Mr. Popkov and the one at the bottom is

    21          translated over the page.  In fact, Mr. Popkov's e-mail and

    22          the one below it is translated over the page.  Your Lordship

    23          sees that what was being sent to Mr. Popkov on 9th July was

    24          effectively a schedule of interviewees that he was due to

    25          interview.  Your Lordship will note, at 1 o'clock, Guzev Vadim


                                              46









     1                               MR. MELLOR - OPENING

     2          was recruited as one of the programmers working for Quantum

     3          Art ----

     4      MR. JUSTICE ARNOLD:  What is the subject?  It does not appear to

     5          have been translated.

     6      MR. MELLOR:  My Lord, no.  We will see if we can remedy that, my

     7          Lord.  We will see Mr. Popkov responds:  "If you can you ask

     8          them to send their CVs in both Russian and English otherwise

     9          I am going to be worn out in translating them".

    10      MR. SAMEK:  My Lord, I can assist, it means resumé.  One can just

    11          about read that.

    12      MR. MELLOR:  Thank you very much.  So, my Lord, what Mr. Popkov

    13          was involved in, the purpose of this trip was supposed to be

    14          interviewing both programmers and project manager.  In fact,

    15          not all the planned interviews took place, which is why, if

    16          your Lordship -- we still need 11D, I am afraid.  Your

    17          Lordship will see in due course that the day after Mr. Popkov

    18          got back from Russia on this trip, the 14th, he received

    19          another 20 CVs and eventually Mr. Chekanov was recruited after

    20          Mr. Popkov interviewed him on the second trip.  In addition to

    21          interviewing programmers on that trip between the 10th and

    22          13th July, Mr. Popkov was involved in the detailed design of

    23          the Passado v2 software.  It started with the database schema.

    24          Your Lordship will see in due course, and it makes perfect

    25          sense, that when you are designing the core of a software


                                              47









     1                               MR. MELLOR - OPENING

     2          system, you design your database schema and, at the same time,

     3          you are designing the core architecture of the system.  My

     4          Lord, we are fortunate that we have some surviving internet

     5          chat that records this.  It is in bundle 11D at page 1336.  My

     6          Lord, this was some chat between Paul Broome at 192.com --

     7          Paul Broome, just to explain, had been brought in as IT

     8          director alongside Mr. Popkov as software director at i-CD,

     9          and of course Mr. Broome was in London, Mr. Popkov was in

    10          Moscow and Paul opens the chat:  "Hope Moscow is good, I need

    11          a short tech overview of Passado - can you oblige -- five to

    12          ten lines."  So Mr. Broome was asking Mr. Popkov to write a

    13          tech overview of Passado and it was actually for use in

    14          I think a presentation.  Mr. Popkov replies:  "Stefan will do

    15          this."  Mr. Popkov responds:  "How is everything in the

    16          office?"  Response: "All OK amazing."  Albert says:  "I have

    17          not finished the database schema part with Stefan" -- and that

    18          is a symbol for a glum face -- "need three four hours more --

    19          hopefully will send out before tomorrow morning."  There are

    20          various other points, but this piece of chat is important

    21          because it records Mr. Popkov working on the database schema

    22          in Moscow.  It can only be a reference to the Passado v2

    23          database schema because it is "for Stefan" and Stefan had no

    24          role other than in relation to Passado v2.

    25      MR. SAMEK:  My Lord, I am sorry to interrupt, just for your


                                              48









     1                               MR. MELLOR - OPENING

     2          Lordship's note, I am told that it is not Stefan Salzbrunn, it

     3          is Stefan the programmer at i-CD.  I am told it is Stefan

     4          Endlich(?), not Salzbrunn; but maybe Mr. Mellor will explain

     5          why he thinks it is Stefan Salzbrunn.

     6      MR. MELLOR:  My Lord, that is the first time we have had that

     7          explanation.  We will investigate it.  It is curious that

     8          Stefan has been already referred to two/three lines up in

     9          relation to short tech overview of Passado but no doubt we

    10          will explore this in cross-examination.  At least we know

    11          something of Mr. Popkov's explanation.  Be that at it may, at

    12          this period, this is precisely when the database schema and

    13          core architecture for Passado v2 was being designed.  My Lord,

    14          our case is that Mr. Popkov, on his visit to Russia, was

    15          sitting down, either by himself, most likely with Igor Grinev

    16          the lead developer, they were together working out the

    17          database schema and the core architecture for the Passado v2

    18          project.

    19                My Lord, just as an aside, I mentioned Mr. Popkov made

    20          two visits to Russia in July.  The second one was on 21st to

    21          26th July.  I will take you to a few details in relation to

    22          that in a moment but, my Lord, the aside that I wanted to

    23          refer to was the topic of the recharges from i-CD to Passado

    24          for Mr. Popkov's time because your Lordship will recollect

    25          from the start of Mr. Popkov's statement that he places great


                                              49









     1                               MR. MELLOR - OPENING

     2          store by these recharges, and indeed places great emphasis on

     3          the fact that there were no recharges for his time in 2005.

     4          Now, of course, that rather misses the point because the key

     5          development of Passado v2 was taking place over these months

     6          July/August/September 2004 and I think even Mr. Popkov accepts

     7          that around 10% of his time was charged to Passado over those

     8          months.  In fact, in July 2004, 10% was Mr. Popkov's initial

     9          feel for how much time should be recharged and, my Lord,

    10          recently we have dug out another e-mail where Mr. Popkov

    11          immediately changes his mind and says, "No, 15%" and he

    12          explains the change because he has taken two trips to Moscow

    13          in July.  So my Lord, the indication is those two trips were

    14          involved with Passado.

    15      MR. JUSTICE ARNOLD:  Can you give me the reference to that e-mail?

    16      MR. MELLOR:  My Lord, let me see if I can find it.  11OA 70(A)(i).

    17      MR. JUSTICE ARNOLD:  This does not sound like the best numbering

    18          system.

    19      MR. MELLOR:  My learned friend, this is one of the bundles that

    20          has grown like Topsy in the last 24 hours, I am afraid.  I

    21          hope your Lordship has an 11OA?

    22      MR. JUSTICE ARNOLD:  Yes.  I have the e-mail.

    23      MR. MELLOR:  I hope you have 70(A).

    24      MR. JUSTICE ARNOLD:  I have read that.

    25      MR. MELLOR:  Not more than 10%, mostly from overtime anyway, then


                                              50









     1                               MR. MELLOR - OPENING

     2          one minute later he changes his mind, "Sorry, more than that,

     3          I went to Moscow twice so 15%."  So, my Lord, the estimation

     4          was not very scientific, it was a sort of gut feel sort of

     5          stuff, but the indications are that he went to Moscow twice

     6          for Passado.  We will investigate what i-CD projects were

     7          being undertaken at the time.  Your Lordship will note from

     8          Mr. Crawford's and Mr. Marsden's witness statements that

     9          generally the amount of work done by Quantum Art for i-CD was

    10          very small compared with the work done by Quantum Art on

    11          Passado projects.

    12                My Lord, the wider point is this.  We ask rhetorically,

    13          why would not your software director, when in Moscow at the

    14          start of a new project, why would he not be involved in

    15          designing the database schema and the core architecture of a

    16          new project?

    17      MR. JUSTICE ARNOLD:  That leads on to an interesting question,

    18          does it not, because it leads on to the question of who was

    19          designing Passado v2.  No doubt the defendants' case will be

    20          to say that essentially it was Quantum Art.  I may be wrong

    21          about that, but I think that is what they are saying.  That

    22          leads on to another question, which is what is the best

    23          evidence as to who was doing the work of first, designing and,

    24          secondly, coding Passado v2?  Who on your side do you say

    25          gives the best evidence about that?


                                              51









     1                               MR. MELLOR - OPENING

     2      MR. MELLOR:  My Lord, it is probably Mr. Crawford.

     3      MR. JUSTICE ARNOLD:  He cannot, for the reason you gave me earlier

     4          this afternoon.

     5      MR. MELLOR:  My Lord, except -- your Lordship is adverting to the

     6          fact that Mr. Crawford himself is not a programmer.  None the

     7          less, he was there at the time.  By this stage he has quite a

     8          long relationship with Mr. Popkov.  Their offices are very

     9          close to each other.  They do not need -- you know, when they

    10          are both in the office, they do not need to send e-mails to

    11          each other.  You have seen an example of chat where they are

    12          in different places but, my Lord, generally, they can put

    13          their head round the other's door and say, "What's going on?"

    14          etc.  My Lord, that is a key point in this case.  The

    15          defendants seem to be running a case that if it is not

    16          recorded in a document, it did not happen, and that is unreal;

    17          because the sort of communication that you would have between

    18          Mr. Crawford and Mr. Popkov day-to-day is unlikely to have

    19          taken place in e-mails and documents.  They were chatting

    20          every day about what was going on, what needed doing.

    21      MR. JUSTICE ARNOLD:  Can we go back to X1?

    22      MR. MELLOR:  Sure.

    23      MR. JUSTICE ARNOLD:  I want to see if I have this straight.  You

    24          are leading evidence from Mr. Crawford and Mr. Salzbrunn.

    25      MR. MELLOR:  Yes.


                                              52









     1                               MR. MELLOR - OPENING

     2      MR. JUSTICE ARNOLD:  You are not leading evidence from Mr. Fromme,

     3          Ms. Helming or Mr. Puetz?

     4      MR. MELLOR:  No.

     5      MR. JUSTICE ARNOLD:  Mr. Popkov is giving evidence, likewise

     6          Mr. Evtuhovich, if I have pronounced his name correctly, which

     7          I doubt, and Mr. Guzev, we do not have evidence from

     8          Tretyakov, Slava or Chekanov, or Grinev.

     9      MR. MELLOR:  Or Grinev.

    10      MR. JUSTICE ARNOLD:  Even though Grinev and Slava are sure, maybe

    11          Chekanov I am not sure about that, but Grinev and Slava are on

    12          the defendant's allocation questionnaire as being witnesses.

    13      MR. MELLOR:  Indeed, and your Lordship may know that Mr. Grinev in

    14          the last few days supplied a selection of e-mails to

    15          Mr. Popkov.  It is a selection which appears to involve

    16          e-mails involving Mr. Salzbrunn, so it is by no means a

    17          complete set.  So Mr. Grinev has very recently supplied a

    18          selection of e-mails to Mr. Popkov, even though Mr. Grinev

    19          told Mr. Crawford some, perhaps a year ago that the archive

    20          had been lost.  Slava is still very much, we say, in

    21          Mr. Popkov's camp, but is not coming to give evidence, that is

    22          true.

    23      MR. JUSTICE ARNOLD:  But, coming back to the question I asked

    24          earlier, one would have thought, looking at the diagram,

    25          Mr. Salzbrunn would be in a position to know who designed the


                                              53









     1                               MR. MELLOR - OPENING

     2          software.

     3      MR. MELLOR:  My Lord, well, I do not have every detail of his

     4          witness statement fully in mind.  He may be in a position to

     5          shed some light on it.  I cannot remember now.  But he may not

     6          because, after all, as I understand it, Mr. Salzbrunn did not

     7          speak Russian either and so, if Mr. Popkov was holed up in a

     8          room with Mr. Grinev, doing the database schema and core

     9          architecture for Passado v2, Mr. Salzbrunn might or might not

    10          know what they were doing.

    11      MR. JUSTICE ARNOLD:  All right.  Has anybody actually looked at

    12          the source code for Passado v2?

    13      MR. SAMEK:  Yes.  My Lord, yes, the experts have, or at least

    14          Mr. Chiu has.

    15      MR. MELLOR:  My Lord, what I will do -----

    16      MR. JUSTICE ARNOLD:  Sometimes, not always, you can tell quite a

    17          lot about authorship of source code by looking at it.

    18      MR. MELLOR:  Yes, my Lord, although .NET is one of those quite

    19          powerful languages that does an awful lot of the work for you;

    20          which is why, actually, the database schema and core

    21          architecture need very careful thought before you go into the

    22          coding stage.  My Lord, our case is that Mr. Popkov did not

    23          actually do any of the coding, the actual coding of

    24          Passado v2, but that he was intimately involved in designing,

    25          either himself or with Igor Grinev, the database schema and


                                              54









     1                               MR. MELLOR - OPENING

     2          the core architecture.

     3                My Lord, perhaps early tomorrow morning I will show you

     4          the other database schemas that were being designed by

     5          Mr. Popkov in 2004, because here we are in July 2004 and

     6          Mr. Popkov has already made a database schema for

     7          Odnoklassniki.  He made that in January 2004.  The other

     8          highlight which comes out of the various database schemas that

     9          he created in 2004, he was working again on the Odnoklassniki

    10          database schema in October 2004.  My Lord, it is around that

    11          time, in October 2004, that Mr. Popkov effectively turned his

    12          back on the Passado project.

    13      MR. JUSTICE ARNOLD:  What do you mean by that?

    14      MR. MELLOR:  My Lord, with the benefit of hindsight, up to about

    15          5th October, we can see regular reporting by Slava to

    16          Mr. Popkov of progress on Passado v2.  Mr. Popkov is copied in

    17          on e-mails when particular versions of the software were

    18          uploaded to the development server and so, for example, he is

    19          copied in on e-mails saying, "latest version has been

    20          uploaded, please have a look at it."  I will pick up those

    21          e-mails in the morning.

    22                So, my Lord, up to about October, all the appearances

    23          are that Mr. Popkov was undertaking exactly the role that you

    24          would expect of the software director.  He was, as he admits

    25          for Passado v1, we say, reviewing the Quantum Art code from a


                                              55









     1                               MR. MELLOR - OPENING

     2          quality perspective.  That is what he should have been doing.

     3          It appears that at some point he, as I said, turned his back

     4          on the code, decided not to bother, perhaps, with it, and that

     5          point coincides with him doing further work on his

     6          Odnoklassniki database schema and the initial Odnoklassniki

     7          code.

     8                My Lord, is that a convenient moment?

     9      MR. SAMEK:  My Lord, can I just rise in relation to your

    10          Lordship's last question about has anybody looked at the

    11          Passado software source code.

    12      MR. JUSTICE ARNOLD:  That question was directed to Mr. Mellor, not

    13          to you.  I appreciate that Dr. Chiu has looked at it.

    14      MR. SAMEK:  Your Lordship sees that.

    15      MR. JUSTICE ARNOLD:  But he answered my question in a different

    16          way, so do not worry.  Very good.  Not before 10.30 tomorrow

    17          as I have another matter listed at 10.  Now, last housekeeping

    18          point for today.  As you are aware, we were planning to be in

    19          court 73 on the belief that it was going to be available today

    20          but in fact it turned out not to be available today and

    21          therefore it seemed to me it was better to at least try and

    22          make a start in this court.  Now we are all in here, do you

    23          all have a view as to whether this is workable or do you

    24          consider that we should move to court 73 if and when it

    25          becomes available?


                                              56









     1                               MR. MELLOR - OPENING

     2      MR. MELLOR:  My Lord, certainly from my point of view, it is

     3          certainly not brilliant, because I do not have access to all

     4          my bundles.  So unless I squeeze my learned friends quite a

     5          bit, this is quite difficult for me, so I would support a move

     6          to a bigger court.

     7      MR. JUSTICE ARNOLD:  Mr. Samek?

     8      MR. SAMEK:  My Lord, I think now that we are here, we are happy

     9          here but I would not want my learned friends to be

    10          inconvenienced so, ultimately, it is a matter for your

    11          Lordship and where your Lordship wants to sit in judgment.

    12      MR. BLOCH:  I have the casting vote at least between counsel.  It

    13          would be to move.

    14      MR. JUSTICE ARNOLD:  You think it would be better to move?

    15      MR. BLOCH:  Indeed.

    16      MR. JUSTICE ARNOLD:  If we are going to move, the obvious point at

    17          which to do so is after the end of opening submissions and

    18          before we get into the evidence.  Would everybody agree with

    19          that?

    20      MR. BLOCH:  Yes.

    21      MR. JUSTICE ARNOLD:  We will review that question tomorrow when we

    22          know a little more clearly what the status of court 73 is.

    23          10.30 tomorrow.

    24                     (Adjourned till 10.30 tomorrow morning)

    25


                                              57

Комментарии

Текст закрыт для комментирования
Что-то мне подсказывает, что тот, кто это запостил, или не был в числе тех, кто договаривались, или очень хочет меня (или кого-то еще) спровоцировать эти договоренности нарушить...
Уважаемый, а вы уверены, что все о чем там говорится - правда, и, более того, что документы на которые ссыллаются с самого начала (и даты на них) - достоверны? ;)
Как _Вы_ думаете, что на самом деле в итоге произошло? Или от Вас что-то скрыли? )))
Alter Ego
Ишь, как засуетился... просрал дело...
То заявлял что чистый и белый, борьба до полной победы и всех порву в клочья, а теперь на мировую... Всплыло что-то, Алик? Такое, за что любых денег не жалко, лишь бы утаили?
Вот значит кому не спится в 3 ночи... Alter Ego, я тебя знаю (с)
Но, так - нечестно, я даже не могу сказать, кто настоял на "утаили", как и на чем-то из остального. Прошу только, не каверкай что-то и не выхватывай из контекста, если уж так неймется цитировать.
Alter Ego
Если ты меня знаешь, значит - Синодова под суд за раскрытие инфы.
У кого три ночи, а у кого VPN и разгар дня.
А чего выхватывать. Суть соглашения не известна, к сожалению. Но если есть в показаниях какое-то вранье, то сгенерировано оно вами, г-н Попков. С маленькой буквы, так как без уважения.
Соглашаются на мировую или до суда вообще, чтобы на адвокатах экономить. А это уже черт знает какая итерация. Значит - рыльце в пушку. Все остальное - лирика. Год платить адвокатам, чтобы потом согласится на мировую (на все или частично- узнаем позже, попкорна у нас полно), можно только в том случае, если всплыли неопровержимые доказательства.
Но вы пойте, пойте, альберт.
Даже если по мировой вы им рубль заплатили.
Без вас будет ощущение переплаты за билеты.
Alter Ego, Вам ту самую долю о которой Вы так искренне рассказывали не дали или что, я не пойму? Что Вас так лишает сна?
Какую долю? мне с ваших судов одни убытки. Так бы мог бы сказать: "По решению суда города Лондона тов. Попков мастер говорить неправду". Это как минимум. а может и чего большее присудили бы. А теперь этого не дождешься. Обида, она дороже денег.... Вобщем - сравни сам, что оно там более стоящее...
Alter Ego
Alexgriffin, "разгар дня" сейчас - это Австралия или Чукотка?
Вообще, жалко конечно, что так все неинтересно завершилось... раз и все...
Такие сюжеты могли бы быть...... Жаль
Alter Ego
you only do it 'cause you can
you only say it 'cause you can
i'm supposed to take it like a man
what if i can?
i can't give more
you can't take more
you only do it 'cause you can
you only say it 'cause you can
i'm supposed to take it like a man
what if i can?
кстати, не корысти ради, просто из любопытства, в Таиланде есть специальная рассылка "стенограммы британского суда"?
Акститетсь, кроме роема, кто снабдит такой информацией??? РИА новости - жалкие крохи, никто ничего не знает...
Кстати, слушания открытые были или закрытые?
Alter Ego
คุณ จะ ไม่ ทำให้ 'คุณ สามารถ
คุณ จะ กล่าว ทำให้ 'คุณ สามารถ
ฉัน ควร จะ เอา มัน เหมือน มนุษย์
หาก ฉัน สามารถ?
ฉัน ไม่ สามารถ ให้ มาก ขึ้น
คุณ ไม่ สามารถ ใช้ เวลา มาก ขึ้น
คุณ จะ ไม่ ทำให้ 'คุณ สามารถ
คุณ จะ กล่าว ทำให้ 'คุณ สามารถ
ฉัน ควร จะ เอา มัน เหมือน มนุษย์
หาก ฉัน สามารถ?
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