CONFIDENTIAL - FILED UNDER SEAL

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

BROKER GENIUS, INC,

Plaintiff,

v.
Civil Action No.1:17-cv-08627-SHS

SEAT SCOUTS LLC,

DREW GAINOR

Defendants.

DECLARATION OF JAMES MCGOWAN IN SUPPORT OF PLAINTIFF’S MOTION

FOR AN ORDER OF CONTEMPT AND SANCTIONS PURSUANT TO LOCAL CIVIL
RULE 83.6.

James McGowan, having first been duly sworn, states and affirms as follows:

1. My name is James William McGowan and I am over 18 years of age.

2. I am the Chief Technology Officer (“CTO”) of Broker Genius, Inc. (“Broker

Genius” or “BG”).

3. I am familiar with and have personal knowledge of Broker Genius’ activities and

operations. As to the matters stated below, I have either personal knowledge or the facts have

been derived from my investigation of the issues, and, if called as a witness, I could and would

testify competently to the facts stated herein.

4. Broker Genius’ AutoPricerV3 (“APV3”) is a web-based application that acts as

an intermediary between brokers’ point of sale (POS) ticket inventory management systems

(e.g., Skybox) and ticket exchange systems (e.g., StubHub).

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5. In order to integrate Broker Genius’ APV3 product with a ticket broker’s POS for

purposes of retrieving and updating pricing data for any ticket within their inventory, the ticket

broker must provide BG with a unique API (Application Program Interface) key that allows for

rapid machine-to-machine communications.

6. While I have not used Seat Scouts’ Command Center product, my understanding

is that, just like APV3, a ticket broker who wishes to integrate Command Center with his point

of sale ticket inventory management system for purposes of retrieving and updating pricing data

must provide Seat Scouts with a different unique API key (i.e., different than the API key

assigned to BG).

7. After May 14, 2018, I began observing the POS activity of nine Seat Scout clients

who are also Broker Genius clients, using their respective unique BG-assigned API keys to

retrieve a list of all the inventory currently owned by each of the brokers and listed in their

respective POS systems.

8. For each listing of the BG/Seat Scouts customers’ inventory, I then used the

unique BG-assigned API key to retrieve a “price history” record that shows every price update in

the POS for that listing, regardless of how that update is made.

9. The “price history” record includes a date/time stamp in Universal Time (UT)

(“dateOfAction”), an e-mail field, which identifies who caused the price update, and a price. See

Exh. 1.

10. Upon analyzing the retrieved price history records for these nine brokers, I

realized that they were still auto-pricing their inventory using the unique Seat Scouts-assigned

API keys.

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11. Exhibit 1, attached hereto, shows sample price history records, for each day from

May 10th through May 22nd, for one of these brokers (“Broker11”) whose inventory I analyzed.

Each of these price history records reflects an update to the POS using the unique Seat Scouts-

assigned API key, specifically “Seat Scouts (fff4026)”.

12. For Broker1, and one other BG/ Seat Scouts customer (“Broker 2”), I totaled the

number of price updates in their POS for the following three periods: from May 1 to May 13;

from May 14 (the day the preliminary injunction went into effect) to May 22 at 1:19:15PM UT

and; from May 22 at 1:29:11PM UT to May 29, by API key or user account and compiled the

same into two tables. See Exh. 2.

13. All nine BG/ Seat Scouts customers (including Broker1 and Broker2) that I

investigated, began using a “SeatScouts” username on or after May 22nd.

14. Attached hereto as Exhibit 3 are price history records of the first price updates

executed by the respective “SeatScouts” username for each of the nine BG/ Seat Scouts

customers (including Broker1 and Broker2) on May 22nd/ May 23rd.

15. Exhibit 4 attached hereto shows sample price updates, executed by the

“SeatScouts” username, for Broker1, for each day from May 22nd through June 4th.

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The names of the broker customers and their respective users (i.e., the individual brokers
working for the customer) have been anonymized.

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