ContentGuard An Intellectual Property Company IPED Conference November 1, 2007 Presented By Eddie Chen CONTENTGUARD

2 DRM?

3 DRM: Manage content uses following the guideposts Source Trust Model Destination Content License Examples: - Ad free for premier members - Copy off DVD for $5 - Earn points for referring to a friend Content ProviderContent Consumer License prescribes Choices to Consumers

4 Distribution Model Usage Model Owner/Distributor Centric (linear) Consumer/User Centric (dynamic) Significant inertia behind the Usage Model Content Distribution Evolution

5 Unprotected Analog Content Unprotected Analog Content Unprotected Digital Content Unprotected Digital Content Copy Protection Copy Protection Conditional Access Conditional Access Flexible DRM Flexible DRM Evolution of Technology Evolution of Rights Expression Legal Contracts (words) Flags / bits Rights Expressions Usage Usage and Protection Natural Evolution That Matches Business And Consumer Needs Protection Rights Expressions are digital implementations of written legal contracts Evolution of Digital Rights Market requires Flexibility and Protection

6 Characteristics of Good DRM Designs Transparency, examples Most consumers dont know DVD is encrypted iTunes Plus confuses consumers Ubiquity, approaches Vertical – All devices support the same DRM Horizontal – Share common elements, e.g. REL, scrambling mechanisms Plug-in – Acquire tools to access content Translation – Intermediate agent Flexibility, accommodating market dynamics Variable pricing E-copy along with physical copy Available for 24 hours …..

7 DRM Patents – Coverage of an Example Portfolio Security and Trust Content Protection Rights Usage Terms and Conditions DRM System Architecture Removable media Application and environment integrity and certification Secure key transfer Content composed of multiple parts Watermarking on output Encryption techniques Self contained, controlled, and protected content Dynamic watermarking Usage rules in a rights grammar Digital content structure Offering and granting Meta-rights Contract expression Language Future content Payment of a fee Usage tracking & reporting User interface to select content and functions Tethered to other systems for content exchange Transaction Creating, managing, and bridging trust zones Executables according to usage rules Digital tickets Access list DRM-enabled portable devices Domains DRM System Elements ContentGuard Patents The premier DRM IP portfolio in breadth, depth, and reach.

8 Estimated Portfolio Size in 2014 = 403 Patents DRM Patents – ContentGuard Portfolio

9 CG Mobile Licensing Program Licensee: Device Manufacturers Grant: Entire DRM portfolio Licensed Solutions: All DRM solutions loaded onto the device at the factory Flexibility and Design Freedom for device manufactures and operators. CG Emerging Licensing Programs Internet Services / PCs Set-Top Boxes / PVRs Consumer Electronics Enterprise Systems Healthcare Licensees DRM Patents – ContentGuard Mobile Licensing Program

10 DRM provides three principal benefits Enabling flexible usage of digital content An environment for new business models Providing guideposts for content uses DRM is relevant to a wide a variety of industries including Entertainment, Enterprise, Healthcare, Financial, Defense DRMs Future Is Bright All digital content will not be free Music industry is struggling to understand the business of digital delivery High value content Video, movies, games, software applications Financial data, schematics, designs, health records, etc… DRM Hype and Reality Intellectual Property is the Key Asset for Leading Enterprises