IPotential Confidential © IPotential, LLC, 2007 Intellectual Property Assets: The Need for a Strategy Presented by Ron Epstein and Marc Kaufman.

IPotential Confidential © IPotential, LLC, 2007

Intellectual Property Assets:Intellectual Property Assets:The Need for a StrategyThe Need for a Strategy

Presented by Presented by Ron Epstein and Marc KaufmanRon Epstein and Marc Kaufman

UNLOCK THE POTENTIAL OF YOUR IPSM


Types of IP ProtectionTypes of IP Protection

Patent New and useful machines and processes

Copyright Creative works

Trademark Words, logos used in connection with sale of

goodsTrade Secret

Secret information that provides business advantage



Copyright, trademark, trade secret Analogous to old media New technology issues

Patents Relatively new to media industry Potential biggest threat

Addressing IPAddressing IP



Intellectual Intellectual Property – An Untapped AssetProperty – An Untapped Asset

IP is the Most Underutilized Asset in Business Unrecognized on most balance sheets Typically, an “afterthought” in business

IP is One of the Largest Opportunities to Increase Strategic Business Value Generate new business opportunities Create barrier to entry for competitors Influence and guide technology/market directions Provide a defense to allegations by competitors



Patents Patents – An Unrealized Threat– An Unrealized Threat

IP Represents a Significant Business Risk Patent filings increasing re media technologies Number of patent suits doubled from 1992 to Litigation cost at $3 - 5M/per patent

Patents Asserted in Media Industry Lucent (MPEG2) Acacia (digital file transmission) Gemstar (TV schedule listings) Intervideo (DVD) Burst.com (digital media transmission) Creative (media player UI) Overture v. Google (ad placement) USA Video Interactive (on-demand programming) Global Patent Holdings (web pages with compressed images) AT&T (MPEG video compression)



Top 20 Holders of Patents Related to Software Co’s*Top 20 Holders of Patents Related to Software Co’s*

IBM 10,206 Canon 7,821 Sony 3,135 Hitachi 2,643 Microsoft 2,633 Xerox 2,390 NEC 2,143 Sun 1,887 Fujitsu 1,780 Fuji 1,650

Kodak 1,633 Intel 1,624 Matsushita 1,381 Toshiba 1,333 Sharp 1,262 HP 1,217 Ricoh 1,003 Samsung 825 Mitsubishi 492 Motorola 475

* List calculated based on those holding patents in the same patent classes as SW Co, and does not count all software patents

Most S/W Patents Held By “Hardware Most S/W Patents Held By “Hardware Companies”Companies”



Patent Strategy – How to be a Patent Strategy – How to be a PlayerPlayer



Patents Are Strategic AssetsPatents Are Strategic Assets

Collect tolls for use of your property

Defend the homeland



Patent Value DriversPatent Value Drivers

Value Comes From Use, Not Technical Sophistication Patents, like land, get their value from location Patents only valuable if they read on (significant)

revenue Primary Drivers

Demonstrated Infringement• Actual use, applicability to standards• Likelihood of continued or future infringement, breadth of

claims Affected Revenue (Current) Encumbrances

Secondary Driver Potentially Affected Revenue (Future)

NET Attorney-Client Privileged & Confidential9



Protecting Inventions

Manage Competition

Hierarchy of IP ValueHierarchy of IP Value

Design Freedom

Build Markets and Relationships

Deliver Revenue

Pote

nti

al R

etu

rn

Biz Strategy Driver



Generating Value Generating Value

Protecting Inventions/Recognition

Manage Competition

Design Freedom

Markets Development

Deliver Revenue

Biz Strategy

Ingredient Technology Co.’s (e.g. Rambus, Qualcomm)

• Assertion Based Licensing

• “Carrot Licensing”

• Patent Sales

• Use Innovation To Develop And Enhance New Products And Markets

• Primary Driver of Most Businesses



Patent StrategyPatent Strategy

Establish an IP culture Expand interest beyond copyright Demonstrate value

Develop Patents with end in Mind What is the purpose for you Budget Quality control

• Unlike copyright, patents require attention



Contact InformationContact Information

Ron EpsteinCEO1440 Fashion Island Blvd.Suite 600San Mateo, CA 94404

[email protected]: www.IPotential.com

IPotential Confidential © IPotential, LLC, 2007 Intellectual Property Assets: The Need for a Strategy Presented by Ron Epstein and Marc Kaufman.

Documents

ip slide

business ip

ip culture

mper patent patents

patent strategy

player slide

unrealized threat ip

untapped asset ip