Declaration of Warren McShane in RTC vs. Panoussis


(My thanks to XX)

This declaration was given by Warren McShane, President of Religious Technology Center, on Sep 5 1997, in the copyright infringement case against Zenon Panoussis.

The most fascinating aspect of this declaration is the way it shows how Scientology top management believe that every Scientologist is a potential thief. Not only new, unproven members are suspected, but even the most highly trusted long-time Scientologists, who according to McShane must pass a rigorous examination of their qualifications before being allowed access to the "advanced levels of spiritual counselling" known as the OT levels, seem to be thought of as criminal minded villains who would seize every opportunity to run off with the "holy scriptures". Only the most extreme security measures, which are detailed in the declaration, keep this from occurring. (sections 19-33)

Unfortunately, that does not quite explain how Robin Scott and company in 1983 were able to get hold of those "holy scriptures" by simply dressing up in navy blue uniforms, walking into the Advanced Organization in Copenhagen and demanding a copy...

This document also gives some information about exactly how much of the actual OT 2, OT 3 and NOTs materials Zenon made public. It seems that sometimes the Church of Scientology has been telling members that the Xenu story revealed by media and on critical web pages is a fake. From this document, it's clear that what Zenon distributed is the real stuff. (sections 15-18)

Due to the ways of the Swedish justice system, this written statement is not given under oath. However, it was the basis of McShane's testimony at the trial, where he did speak under oath. The transcript of that testimony is sealed though. This declaration is a public document.

The first row of numbers seem to be from the fax machine of RTC's Swedish lawyers.


SEP 05 ' 97 05:02 FR        TO 9011 46 8 6797565 66 P.02

[stamp]
The Primary Court
of Stockholm
Divison 7
1997 - 09 - 05
Case no T - 7 - 866 - 96
File attachment no 189
[end of stamp]

DECLARATION OF WARREN MCSHANE

I, WARREN MCSHANE hereby declare:

1. I am a citizen of the United States of America. Since August of 1983, I have been employed by Religious Technology Center ("RTC"), a church of the Scientology religion. Since October 1983, I have been a Director and Officer of RTC, and I am currently its President. An important part of my functions is to ensure the protection of certain unpublished, confidential scriptures belonging to RTC which are often referred to as "Advanced "Technology" and are described throughout this declaration. I make this declaration in Case Number 7-866-96 of the Stockholm District Court, Section 7:5, in which RTC is the plaintiff and Zenon Panoussis is the defendant. I have personal knowledge of the facts set forth herein and I am willing and intend to appear as a witness in this case.

THE SCIENTOLOGY RELIGION AND WRITINGS OF L. RON HUBBARD

2. RTC is a Church of the Scientology religion. The Scientology religion is based on a vast body of religious writings by its founder, L. Ron Hubbard, which are protected by federal and international copyright law. All but a small percentage of Mr. Hubbard's original written and recorded works have been published and made generally available. Among the unpublished works is a body of special works written by Mr. Hubbard known as the "Advanced Technology" which contains confidential and proprietary information. The majority of those writings are published works which are sold in Church bookstores and a number of them in secular bookstores as well.

3. Scientology religious counseling, also referred to as "auditing", is delivered in a series of gradient steps, each of which must be completed before the next step is undertaken. The published religious works of Mr. Hubbard are used up to a certain level of auditing. Beyond that point, however, the auditing levels are confidential and Mr. Hubbard instructed that the confidential works (the Advanced Technology) used on these advanced levels were to remain unpublished and not made available to anyone who has not met the stringent qualifications for that level, as discussed below. The practice of maintaining confidentiality is a central tenet of the religion.

RTC'S RIGHTS IN THE ADVANCED TECHNOLOGY

4. Mr. Hubbard died on January 24, 1986. As part of his estate plan, Mr. Hubbard's will contained specific directions regarding the disposition of his Estate, which were implemented in part by the property transfers described below.

5. While plaintiff RTC had previously been granted the United States rights in the Advanced Technology, by agreement dated November 30, 1988, all of the non-United States rights in the copyrights to Mr. Hubbard's unpublished works comprising the Advanced Technology were granted by Mr. Hubbard's estate to RTC. RTC was granted authority, inter alia, to enforce all rights belonging to the holder of the copyrights in the Advanced Technology materials. At all relevant times that agreement has remained in full force and effect. A true and correct copy of that agreement was filed with the Court on September 2, 1996.

6. All of the assets of the Estate of L. Ron Hubbard, including the copyrights pertaining to the Advanced technology materials, were distributed in 1993. In an agreement dated November 29, 1993, the successor in the interest to the Estate affirmed RTC's November 30, 1988 license to all copyrights pertaining to the Advanced Technology materials with the right and obligation to enforce all the copyrights in those materials. A true and correct copy of that agreement was filed with the Court on September 1996.

7. As a result of these agreements, RTC has the exclusive right to control the use and dissemination of the Advanced Technology materials.

8. Because of the confidential nature of the Advanced Technology, RTC licenses only seven Churches of Scientology to use the Advanced Technology materials in conformity with strict guidelines. While many of the basic Scientology scriptures are publicly available, as dicussed in paragraph 2, the Advanced Technology materials are considered confidential and are available through these seven churches only to those approved parishioners, who have attained the proper level of spiritual enlightenment. The Advanced Technology is also a source of substantial revenue for RTC in the form of licensing fees paid by the Churches that are licensed to use the Advanced Technology. These Churches pay RTC six percent of the donations made by parishioners in exchange for any services ministered to their parsihioners in which any of the Advanced Technology works are used.

THE WORKS AT ISSUE

9. The Advanced Technology is divided into gradient counseling levels. Each level has to be fully completed before the next is started. The list of these counseling levels, which are delivered by the authorized Churches of Scientology to select parishioners and are involved in this case, have been referred to in this litigation, namely OT II, OTIII and NOTs.

10. The copyright registrations for the Materials have previously been provided to the Court on September 2, 1996.

11. No individual can legitimately gain access to the Advanced Technology without being invited to participate in these services after RTC has confirmed that individual's eligibility. An individual must be a Scientology parishioner in good standing who has demonstrated a high ethical character and who has passed stringent eligibility requirements. Even before a person ever reaches the point of seeking RTC approval, an evaluation of whether the person has met these requirements is done in several independent steps, by the individual staff memebers who are in charge of each are of qualification.

12. The parishioner must also sign an agreement to keep the contents of the Advanced Technology secret and not to disclose them to anyone without authorization, and then only to those who have attained the proper level of spiritual enlightenment needed to assure proper under standing of them. Confidentiality agreements have been in use since the creation of the Advanced Technology.

13. Even parishioners who have met the eligibility requirements do not have unlimited access to the Material. In addition, the level of access to particular confidential materials depends upon the confidential level in question.

14. OT II and OT III are delivered in two stages, always in a controlled, secure environment. The parishioner is never given copies of the materials to retain. First, the parishioner studies the confidential materials of the level and then he counsels himself on the level. He is supervised on each step to ensure that he ministers the Advanced Technology to himself correctly and that he obtains the exact expected results from each level.

15. OT II consists of 27 separate works written by Mr. Hubbard and ten confidential films in which he demonstrates the techniques and processes of this level. The Works found in Panoussis' posession and which he posted contain 10 of the 27 written OT II works. Sixteen of the works within this level describe OT processes that Scientologists believe free the individual from traumatic events that occurred aeons ago and which, because of their imprint on each individual, serve as barriers to one's spiritual well-being, and enlightenment. OT II auditing is designed to enable the individual to overcome the effects of these traumas, and thereby, achieve heightened spiritual awareness. The remaining three Works within this level describe "how to" audit various OT II processes, including those described in the OT II works encompassed in the other Works which Panoussis has. These 10 works are all crucial components of this level. A chart has been created that shows the percentage of each work copied:

WORKS WITHIN OT II
WORK PAGES PERCENT COPIED
Attachment No. 1 2 62
Attachment No. 2 3 84
Attachment No. 3 2 100
Attachment No. 4 2 100
Attachment No. 5 3 20
Attachment No. 10 1 94
Attachment No. 11
OT Course Part One B
1 100
Attachment No. 12 2 75
Attachment No. 22 2 100
Attachment No. 23 10 7

16. At the OT III level, the Scientology religion presents Mr. Hubbard's discoveries of the means to eradicate those mental factors arising from past spiritual trauma which stand in the way of peace and tolerance for mankind. This level is central to the Scientology religion. It consists of 37 works which contain a systematic methodology for countering effects of the spriritual trauma caused by events that Scientology posits occured 75 million yeras ago and earlier. The OT III materials found in Panoussis' possesion and which he posted constitute 15 of the 37 written OT III works. A chart has been created that gives specifics about the infringement:

WORKS WITHIN OT III
WORK PAGES PERCENT COPIED
HCOB 17 Aug 1983
Attachment No. 1 - Data
3 100
HCOB 4 May 1968
- Character of _________
1 100
HCOB 17 Aug 1983
Attachment No. 2 2nd Note
5 100
HCOB 17 Aug 1983
Attachment No. 3 1st Note
1 100
HCOB 5 Feb
The Basic ___________
1 100
HCOB 4 May 1968
- __________ Auditing
1 100
HCOB 17 Aug 1983
Attachment No. 4 - instructions
4 100
Section III OT
Notes on Running
2 100
HCOB 2 Oct 1968
- OT III
1 100
HCOB 4 May 1968
Overrun on OT III
1 100
HCOB 12 April 1970
Running OT III
1 100
HCOB 13 Oct 1969
OT III Errors
1 100
HCOB 25 Oct 1969R
Formation
2 100
HCOB 26 Aug 1969
OT III Case Supervision
3 29
HCOB 16 Aug 1983
Ruds Going Out
2 66

17. The next level at issue due to Panoussis' postings is New OT V. This is called "New Era Dianetics for OTs" ("NED for OTs" or "NOTs"). The NOTs level is ministered to the parishioner by a highly trained and trusted minister of the Church. The parishioner never actually sees or studies the materials covering the procedures and theories of this level, but simply receives the counseling. It is the individual ministers, referred to as auditors, who are trained to deliver the religious counseling, who study the actual NOTs materials.

18. In all, there are 55 NOTs works which comprise New OT V. Fiftythree of them are included among the Works at issue in this case. Although these NOTs works are part of an integrated methodology for dramatically increasing one's spiritual awareness, each of the issues is highly valuable in its own right. For example, NOTs Series 1 provides the theory on which NOTs auditing is based, defines terms and describes phenomena that will observe in auditing the level (although it does not describe the OT processes themselves). Other NOTs series Works set out methods and procedures used to correct difficulties a person may be having in auditing on any section of the NOTs level. A chart has been created that gives specifics about the infringements:

WORKS WITHIN NOTS
WORK PAGES PERCENT COPIED
NED for OTs Series 1 5 100
NED for OTs Series 2 1 100
NED for OTs Series 3 1 100
NED for OTs Series 4 1 100
NED for OTs Series 4
Attachment 1
3 99.8
NED for OTs Series 4
Attachment 2
2 100
NED for OTs Series 5 2 100
NED for OTs Series 6 3 99.5
NED for OTs Series 7 4 100
NED for OTs Series 8 1 99.8
NED for OTs Series 9R 1 100
NED for OTs Series 10 1 100
NED for OTs Series 11 3 100
NED for OTs Series 12 4 100
NED for OTs Series 13 2 100
NED for OTs Series 14 2 100
NED for OTs Series 15 2 100
NED for OTs Series 16 1 100
NED for OTs Series 17 2 100
NED for OTs Series 18 2 100
NED for OTs Series 19 2 100
NED for OTs Series 20 2 100
NED for OTs Series 21 2 100
NED for OTs Series 22 2 100
NED for OTs Series 24 3 100
NED for OTs Series 25 1 100
NED for OTs Series 26R 1 50
NED for OTs Series 27 11 91
NED for OTs Series 28 5 100
NED for OTs Series 29 1 100
NED for OTs Series 30 1 100
NED for OTs Series 31 1 100
NED for OTs Series 32 3 100
NED for OTs Series 33 2 100
NED for OTs Series 34 3 100
NED for OTs Series 35 1 100
NED for OTs Series 36 1 100
NED for OTs Series 37 2 100
NED for OTs Series 38 1 100
NED for OTs Series 39 1 100
NED for OTs Series 40 1 100
NED for OTs Series 41 2 100
NED for OTs Series 42 4 100
NED for OTs Series 43 2 100
NED for OTs Series 44 1 100
NED for OTs Series 45 1 100
NED for OTs Series 46 3 100
NED for OTs Series 47 6 80
NED for OTs Series 48 11 99.8
NED for OTs Series 49 7 85
NED for OTs Series 50 4 100
NED for OTs Series 51 1 100
NED for OTs Series 52 3 100
NED for OTs Series 54 2 100
NED for OTs Series 55 1 100
HCOB 10 Nov 1981 Confidential
OT III and OT III Attest
1 100
HCOB 22 Dec 1979 Confidential
Qual Corrective Action on OTs Series 2
3 100
HCOB 11 Jan 1979 Confidential
Qual Corrective Action on OTs Series 3
5 100
HCOB 10 Nov 1981 Confidential
Handling Correction List on OTs
1 100
HCOB 15 Nov 1978R-1
Addition of 15 Oct 1981
Confidential NED for OTs
Advanced Courses Specialist
Course Checksheet Part Two
12 90

19. Numerous measures have always been taken to ensure the physical security of any materials that contain Advanced Technology and to protect these materials from unauthorized disclosure. In general, security systems have been used all times which strictly limit physical access to the materials and, futher, limit access only to those who have met the requirements described in paragraph 11 above, and have agreed to be bound by agreements to maintain the confidentiality of the materials. The security systems employed have always limited access, and, as security technology has advanced over the years, the systems employed to protect the confidentiality of the Advanced Technology have become more sophisticated.

20. The courses utilizing the Advanced Technology are delivered in separate churches called Advanced Organizations. RTC issues each of these organizations a limited number of copies of the materials containing the Advanced Technology. Each copy is numbered and logged. Historically and currently, the materials have been maintained in locked filing cabinets in rooms with locked doors, which only authorized people may access. At each of the Advanced Churches, the building itself is equipped with security personnel trained to respond immediately to any alarm indicating a potential unauthrized access to the Advanced Technology, and the staff who work in the area where the Advanced Technology materials are kept are also trained to respond to any alarm related to materials. All of the buildings have video cameras and motion dectectors to protect each of the confidential courserooms which contain the Advanced Technology materials.

21. I have had photographs made of the current security facilities at one of the Advanced Churches which RTC licenses to use the Advanced Technology under strict conditions. The photographs fairly and accurately depict the procedures and personnel which currently protect the confidentiality of the Advanced Technology. While the pictures show a Scientology staff member posing as a parishioner who is commencing an advanced service, what is depicted and demonstrated in the photographs are exact same procedures anyone authorized to do so would go through to recieve and partake in services using the Advanced Technology. The exact steps that each eligible parishioner goes through are fairly and accurately re-enacted in these photos, and the procedures being demonstrated in these photos are the precise security procedures employed each day. These photographs are set forth in a binder filed herewith, and I incorporate these photographs and their captions as though set forth in full in this declaration, and I describe below what they depict. The photograph which corresponds to a particular piece of text will be noted by reference to a Tab number.

22. When a person comes to an Advanced Organization, he must go to the Advanced Courses receptionist to be directed to the service for which he is arriving. (Tab 1) The receptionist gives the person a routing form that sets forth each of the steps that he must do in order to be permitted onto the service he wishes to commence, including steps by which his eligibility for the service is verified. (Tab 2) The parishioner also recieves and signs a confidentiality agreement, as described in paragraph 12 above. (Tabs 3 and 4)

23. After he has done the eligibility verification steps of the routing form, the parishioner goes to the office of the Religious Technology Center representative located at the particular Advanced Church, in order to obtain an invitation to begin an Advanced Technology service. (Tabs 5 and 6)

24. Once a parishioner has received an invitation, he goes to Security and presents the invitation, thereby showing that he has met all eligibility requirements in order to receive a security card which will permit him to access to the area in which the particular Advanced Technology service is ministered. (Tab 7) Before being issued a security card, the parishioner must study the security rules and directives on confidentiality. (Tab 8) Once that is done, a security guard enters identification information about the parishioner into the security computer and prepares a security card. (Tabs 9 and 10) The security card and a confidential personal identification number (PIN) are then given to the parishioner. The card is on a chord, so the parishioner will wear it around his neck and not lose it. (Tab 11)

25. At the entrance to the area where the actual delivery of the services utilizing the Advanced Technology occurs, there is a locked door with admission monitored by video cameras and security card readers. These doors can only be opened by passing a duly issued security card through the card reader. (Tabs 12, 13) Only idividuals who have been issued a photo-identity card and a password by Security are able to open the door to enter this space. (Tab 14) When the parishioner has put his card through and entered his PIN, and it has been accepted by the computer, the magnetic lock on the door is released, permitting the outer door to the Advanced Courses area, which is otherwise locked, to be opened. (Tabs 15 and 16)

26. The outer door opens onto a foyer that leads to a passageway. Off this passageway are several doors which go into the various course rooms, as there is a different course room for each level studied, and parishioners must separately qualify for and be invited to begin each one. (Tabs 17 and 18) Whenever the outer door is opened, all of the inner doors automatically lock. (Tab 19) The inner doors are also secured with magnetic card readers, and access is only possible with valid security number and PIN. (Tab 20)

27. When the parishioner arrives at the course room (Tabs 21 and 22), he takes his eligibility certificate to the advanced Courses Course Administrator, who confirms that he is eligible to be in the area. (Tab 23)

28. The confidential materials historically were, and are currently, stored within the actual course room and controlled by someone whose responsibility it is to administer them. (Tab 23) Currently, the confidential materials are stored in the Course Administrator's office. The Course Administrator's office must be accessed via a card reader, and parishioners' security cards do not work on that card reader. (Tab 24)

29. The materials are bound in individual packs and are locked in secured and protected rooms. Each pack is monitored by the security computer which automatically alerts security personnel if the packs are tampered with. When an approved parishioner goes inte the course room to study the confidential materials on a particular advanced level, he presents the course administrator with his eligibility certificate, and the course administrator then logs the numbered pack out to the parishioner, unplugs the pack from the security cabinet or safe and hands the pack to the parishioner. (Tabs 25 and 26) The moment the pack is unplugged the door to the course room is magnetically locked and stays locked until the pack is plugged into a corresponding connection point on the table where the parishioner assigned to that pack to study. (Tabs 27 - 30) Additionally, an alarm sounds the doors lock if the confidential pack is not plugged into its connection point in the table within seconds. Even the pages of the packs which contain the confidential materials are manufactured and bound together in such a way that if they leave the designated security area, alarms sound and the doors automatically lock. As a result, there is no physical way any of the confidential packs can be removed from the room where they are kept.

30. The parishioner studies the course pack (Tab 31), and at the end of the study period, the security procedure is reversed. The pack is unplugged from the table which automatically locks the door. The parishioner unplugs the pack and hands is to the course administrator who has seconds to plug the pack back inte the cabinet or safe. (Tab 40)

31. Confidential cassette tapes are also used as part of the Advanced Courses. These are kept in filing cabinets secured by barlocks. (Tab 32) The Course Adminstrator takes the confidential tapes out of the filing cabinets and places them into a tape player that is in the Course Administartor's office that parishioners cannot access. (Tabs 33 - 36) In the course room there are sets of foot pedals that correspond to each tape player, and the parishioner sits at the appropriate space to operate that foot pedal in order to hear the tape. (Tab 38) The course Administrator also unplugs the transcripts of the tape from its slot on the shelf, and the student must take the transcript to his space in the course room and plug it back in within 30 - 45 seconds, as described above. (Tabs 37 - 38) After listening to the tape and following along with the transcript, she student returns the tape transcript to the Course Administrator. (Tabs 39 - 40)

32. All Advanced Course areas are monitored by Security at all times on video screens, through remote cameras situated throughout the building. (Tabs 41 - 44)

33. If a parishioner needs to take with him the specific small segment of the materials of an OT level that is needed for the perticular auditing he is doing at a given time, which is different from the course materials studied on the course, he must carry those materials to the auditing space located within a secure location in a locked briefcase, and must either keep it with him at all times or have the materials, in the locked briefcase, in a locked closet. Those materials are signed back in, all within the secure location. A student who has done an advanced course does not retain possession of the advanced course materials studied. No one is allowed to leave Church premises with the packs of confidential course materials, either before, during or after taking these services.

34. To Scientologists, the OT II, OT II and NOTs scriptures are highly sacred and confidential. Pursuant to RTC's policies for protection of the Advanced Technology, no authorization has ever been given to defendant Panoussis to copy, aquire, use, disclose, reproduce or display any of these works or any other Advanced Technology work. Neither RTC nor any of its licensees has ever given or sold Advanced Technology materials to anyone. The only way that any confidential materials could be removed is by outright theft.

35. The Advanced Technology works which Panoussis has posted and otherwise unlawfully distributed, have never left the custody of RTC, its predecessors or authorized licensees except through theft or misappropriation. The NOTs works were stolen from one of RTC's licensees in Denmark in 1983, for which one of the co-conspirators was arrested, tried and convicted in Denmark.

I am willing to testify under oath to verify the truth of the statements made in this declaration.

Signed this 5th day of September 1997 in the state of California in the United State of America.

[signed]

Warren McShane


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