Langdale asked if he had telephoned Craig, who was in Baltimore, to confront him about the affair in September 2005, and if he told Craig he should tell his then fiancee Satsuki Mitchell about it.
He replied: "I did, yes ... we have known each other for many, many years so the conversation took on the sort of turns ..."
Law confirmed he had not left any voicemail messages for the James Bond star, and was asked if he was aware at the time that people around him were talking to the News of the World.
He said: "No ... although I suspected it because there was such a consistent flow of information about my life and the people round me."
He said he was made aware in 2011 that an immediate member of his family had spoken to the News of the World, but when Langdale asked him if he knew the family member was being paid, he said: "I've never been aware of that."
He was also handed a second piece of paper with the names of a publicist and an employee who it was alleged were also selling stories to the tabloid via its then-showbusiness reporter Rav Singh.
He confirmed the names.
Asked how he first became aware that his relative had spoken to the News of the World, he said: "It was from the relative - I'm sorry, initially it was from the investigation, and ... when a conversation was had with the relative they came up and admitted what had gone on. Admitted is too strong a word. As I said before I had never heard any money had exchanged until today."
Law said press interest in him had increased dramatically when he was nominated for an Oscar for The Talented Mr Ripley in 2001, which coincided with the breakdown of his relationship with his then wife Sadie Frost.
He said photographers would be outside his door "daily" and "there seemed to be an unhealthy amount of information that someone had that meant they had access to my whereabouts and what I was doing, who I was with".
"I was shocked to see the amount of information that had been accumulated (by Mulcaire). Sadly, it didn't surprise me because it seemed that someone, somewhere had this information because they were able to follow me not just in this country but abroad too."
Coulson denies charges relating to phone hacking and alleged corrupt payments.
Six other defendants who are also on trial deny all charges against them. Mulcaire has pleaded guilty to conspiracy to intercept voicemails.