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1 Fitzmaurice 2 (Above described 14 advertisements marked 3 Fitzmaurice Exhibits A-1 through 14 for identifi- 4 cation, as of this date.) 5 MR. BOAL: Off the record. (Discussion off the record.) Q Referring to Exhibit A-1, was that run na- -8 tionally by Philip Morris? 9 A That was a split run with -- as indicated on this 10 schedule, anyway, a Parliament ad. What is a split run? That would mean that the Parliament ad was run in 13 one portion of the country and the Marlboro Lights ad 14 was run in another portion. 15 How about A-2? 16 That is national. 17 A-3? 18 A National. ~ 19 Q A-4? 20 National. A-5? -21 22 MR. BOAL: What is the date on that? 23 MR. FLETCHER: March 24th. 2A A' That iss referred to here as three horse cowboy so 25 I assume that's it; national. 0 N ~ C m O O

1 Fitzmaurice 12 2 Q A-6? 3 Q A-9? MR. FLETCHER: June 16th. 4 MR. FLETCHER: March 31st. ~ 5 A That is indicated on our records as April 7th, 6 national. 8 A 14 15 16 1? r, National. That is indicated on our records as May 19th, Q A-7? Date? MR. FLETCHER: April 28th. National. Q A-8? MR. FLETCHER: May 12th. national. 18 v A-10? 19 - MR. FLETCHER: July 28th. ~ ~ . . ~ MR. BOAL: The date? ~ - ~ 20 ti That is indicated on our records as August 4th, 21 national. 22 23 -A-11? MR. FLETCHER: August 25th. 2tational. : A-12? _ 25 x u+ 0 N %O

1 Q MR. FLETCHER: September 15th. A National. 4 Q A-14? 6 10 11 MR. FLETCHER: September 29th. National. Q A-14? MR. FLETCHER: November. 3, ' 72. National. Q Do your records indicate whether advertise- ments were placed in Life Magazine for Marlboro Lights 12 in addition to those that we have identified as A-1 13 13. through 14? In other words, did A-1 through 14 represent in Life Magazine in 16 MR. FLETCHER: Can you tell from these re- 17 cords? 14 all the Marlboro Lights advertising 15 1972? 18 A should be able to. I have a total of 15 inser- 19 tions. 20 MR. BOAL: Of 21 22 23 24 25 Fitzmaurice f the record. (Discussion.off the record.) Can you tell which is the missing one? I think we could probably figure it out. MR. BOAL: Off the record. (Discussion off the record.)

Fitzmaurice Q You initially indicated, there were 15 ads run in 4 1972? 14 ; Correct. s there an explanation as to why there appears 6 to be only 14 run in the New York edition? There is one additional split'run insertion which: 8 was the July 14th issue of Life and again it was split run with Parliament. Q It is probable that Parliament was the adver- tising placed in the New York area? I think that is probably the answer. Q Do you recall having executed an affidavit for submission in support of an application to register Marlboro Lights for cigarettes? Yes,. I do. Have you recently had occasion to reread that? .Yes, I have.. In that affidavit it is"stated that Marlboro 20 2 22 23 24 25- Lightss advertisements appeared in 13 issues of Life-in 1972 and I was wondering if there was an explanation why you said 13 rather than 14? A I suspect that the reason was that in going through my records I was looking for advertising that was specifi- cally directed to tlarlbdro Lights and not to either pro- 5026a oe''

Fitzmaurice 15 3 motional advertising which was the country store or line advertising, which was the final ad that makes up the 15 E 4 we have just gone over. ~ . ~- ~. Q Is it likely that probably what you did was ~' - v 6 you excluded the ad that has been identified as A-12 and A-14 and you probably included the ad that was split, half appearing, perhaps, in the west coast area and the other 11 12 13 14 15 17 18 Q ' The question I have with respect to interroga- tory no. 7-- it may well be that you cannot answer this but the question is really directed to the corporation. That is whether or not the advertising figures for 1972 included or didn't include the country store? Secondly, the question is in 1973 the total is given of the proportionate share of the line advertising -- I believe one quarter of the line advertising figure was the .19. figure used -- whether in '72 there was any line advertis- 20 ing that was used to make up the total that is given for Z-1 print advertising? 22 I cannot-answer those questions. It would mean go- 23 . ing back and analyzing the numbers. 4 MR. FLETCHER:- It is my understanding there 25 was no line or promotional advertising included . y N

I .Fitzmaurice in the '72 figures. If there had been, we would 4 5 6 10 11 12 13 14 .15 16 have designated it that way. Whether it happened with the people who compiled the numbers and gave them to us, I cannot say. MR. BOAL: I will accept your representation that they are not included. MR. FLETCHER: It is my understanding, and it 16 was my understanding at the timG that they were not. I think for present purposes.we can figure that they weren't.. Q At this point I would reask the question that you referred to earlier that you were working on and that is how much of the expenditures in '72 were for the first and second.phase advertising and conversely, how much was for the advertising that is of the type such as Exhibit .17. A-13, Marlboro Lights, "The spirit of Marlboro in a low 18 tar cigarette." 0 19 - 20 21 MR. FLETCHER: We are trying to get an an- swer. Off.the record. (Discussion off the record.) MR. BOAL: At this point I would like to mark as Exhibit B a file wrapper history of.the Marlboro Lights applica_tion, serial no. 401870. MR.'FLETCHER: Mr. Boal, I can't comment on

I 4 5 Fitzmaurice 17 the handwritten notations throughout the file, but otherwise it appears to be a file of the papers sub- mitted with the application. MR. BOAL: I will represent for the record that the copy that I will ask the reporter to mark as Fitzmaurice Exhibit B is a photocopy of what exists in the patent office. In any event there are not any notations placed by anybody -- - MR. FLETCHER: What you are trying to say is 13 14 15 16 17 18 that Reynolds didn't put them in there and I will stipulate that Philip Morris didn't put them in there and we really don't know who did. (File wrapper history of the Marlboro Lights application, serial no. 401870, marked Fitzmaurice Exhibit B for identification, as of this date.) Q Attached to a copy of a response to an office action, which response is dated January 30, 1973, there is 19 an affidavit of Robert A. Fitzmaurice and I would ask you 20 if that is the affidavit you executed or a copy of the 21 affidavit? 22 23 A It is. Did you read the affidavit before you signed

1 2 Q Fitzmaurice 18 Was the first commercial roll-out of the brand in the New England market area? 4 A 6 It was introduced in New England, correct. Q Rolled out into the other areas of the country; is that correct? the figures come out before they are incorporated into Referring to attachments A-1, A-2, and A-3 to 9 the affidavit, when was that point of sale material first I can't give you an exact date without going back 12 into the records, sometime after August of 1972 based on It refers to an FTC report of August, 1972? That's correct. Did it normally take a period of time after 17 20 21 advertising? That's correct. Yes. Is there any rule of thumb as to how long it .u$ually takes? There.is a required time limit and what that is off- 23 25. point of sale piece such as.that shown there, such as the

Fitzmaurice 2 one I have just handed to you? (Indicating.) 3 A The same basic design but there is a more recently 4 Q The structure of it is essentially the same? Yes. MR. BOAL: I would ask the reporter to mark (Above described document marked Fitzmaurice Exhibit C for identification, as of this date.) 11 Q I would ask you if you are familiar with the 12* point of sale piece that I have just handed to you? 13 A I recognize it but I am not familiar with when or 14 where it was used. . 15 16 17 (Discussion off the record.) Do you know whether or not that was the intro- 18 _ductory point of purchase piece that was distributed by 19 Philip Morris? 20 21' MR. BOAL: Off the record. MR. BOAL: I would ask the.reporter to mark. that as Exhibit D for identification.- It looks like it would have been one of the intro- 22 . 23' ductory pieces. Whether or not it was, I can't remember 24; that. 25 (Above described Socument marked Fitzmaurice Ex- produced piece of point of sale material.

..Fitzmaurice million were distributed; is that correct? I believe that is the figure, yes. hibit D for identification, as of this.date.) Q I have here a document that has previously 5 been identified as Morgan Exhibit 25A, B, and C and ask if you recognize that document? 6 A I do. Q What was that? 8 A That was a sampling card. In Paragraph 4. you state some figures with 18 respect to advertising expenditures on behalf of Marlboro 19 Lights. I ask.you whether or not those figures did or 20 didn't include the cost of the sampling program? 22 no. 7 help you in that respect? . 23 24 was identified as Morgan Exhibit 25A, B, and C? I assume that that reference is to the sampling pack that Q This is the sample packs of which about 12 Q In Paragraph 2 there is reference to 12 million sample packages of Marlboro Lights. Just for the record, That' s correct. I would assume that based on the answer to.interrog- s the 'two .figures mentioned in question. no. 4