Intel’s Views on IPR in Standards September 2005 Earl Nied Program Director SIGs and Standards Legal Department - Intel Corporation

Intel Participates in Many SIGs/Standards Currently in > 350 working committees in > 175 different organizations Including many RF environments ACPI, W3C, Serial ATA I, USB, UDDI, Bluetooth, DVI, Khronos, RosettaNet and many others And other unique offers to license UPnP, AVS, WiMax, C#/CLI, etc. ACPI AVS DMTF DLNA EOU GSMA IETF IPMI JEDEC Khronos NPF OASIS OIF OMA PICMG RosettaNet SNIA SSI … (many others)

Getting Key IP Stakeholder Cooperation Success in Standards necessitates balancing interests Between the innovators/technology leaders (IP stakeholders) and implementers Important to encourage IP Stakeholders to participate under the rules of the organization Patent risks for implementers can be lowered (although not eliminated) through reasonable disclosure policies and licensing obligations that do not deter broad participation of IP stakeholders Member Patents Requirements of the Standard Non- Member Patents Standards Development Organization IPR Policy

Intel’s Patent Strategy – Overview As a technology leader, manufacturer and supplier to a variety of markets, Intel maintains a significant patent portfolio generally for defensive purposes We use our patents to Drive innovation and technical reputation Protect our investments Negotiate for design ‘freedom of action’ while protecting against copying Support and defend ourselves, our customers and our channels of distribution Enable or expand markets for our products/investments Royalty income from essential claims in standards is not a primary objective Our strategy is consistent with many other companies that need to compete worldwide

Patent Value in Negotiations Having your own patents of value to negotiate with is a necessary consideration when your business model is to develop and sell leading edge products Any blanket commitment to restrict the use of patents (including RF-RAND or RAND in Standards Development) requires careful consideration May increase potential market for your investments But also can reduce the value of the patent in negotiations Any decision to restrict use of our patents typically includes consideration of Our business interests Scope of the commitment Potential to effect adoption

Intel’s View on IPRs in Standards Standards should be based on best technical solutions per market requirements Standards depend on innovation (typically involves IPR) Successful standards Balance the needs of innovators with the needs of implementers Respect valid IP and the rights of IPR holders IPR policies Must have a reasonable scope, be practical, fair and Not present an excessive burden on any member or class of members Overreaching or ill-conceived IPR policies thwart participation and may lead to technically inferior solutions and increased IPR uncertainty

For more information see: http://www.intel.com/standards/ Conclusions Intel has a long history of participating in many standards under a varietary of licensing models IPRs (especially patents) are a valuable and necessary asset Intel makes prudent decisions regarding licensing our patents based on our business interests, support of our customers and growth of our industry While we do seek value (especially defensive value) for our patents essential to implementing standards, royalty income is not a primary objective Our experience is that standards depend on innovation and need to balance interests of innovators and implementers Useful and novel approaches to IPR may advance adoption Overreaching or ill-conceived IPR rules can be harmful For more information see: http://www.intel.com/standards/