Strategy & Mechanism for IP Managements & Operations 阮啟殷 James C. Yuan 法學博士 神達電腦集團 副總經理暨法務長 MiTAC International Group, Vice President / General Counsel 東吳大學法研所 兼任副教授 Soochow Law School, Associate Professor 台灣科技產業法務經理人協會 理事長 Taiwan Technology Industry Legal Officers Association “TILO”, Chairman　

IP Challenges-1 A. Numerous Patent Claims Patent Trolls Buzz & Attack Licensing Cost vs. Low Profit Margin Attorney Fee v. Royalty / Damages Compensation OEM Manufacturer’s Sandwich Dilemma Powerful Buyers and Vendors for IP Indemnity 5. Lack of Powerful & Essential Patents 6. Shortage of (Qualified) IP IH Engineers B. Industrial Standards Issues Logos? Patents? Licensing Cost? Lawsuit History? C. Open Source Issues Obligations Resulting from Open Source Software No Cost as Using Open Source Codes? Free of Use ≠Free of Cost

IP Challenges-2 D. Enormous Patent Filling & Maintenance Cost Routine Patent Review Try to Make Profit E. Various Legal Systems Judicial System in U. S. Right to Sue 2. Border Protection Measures in EU Smoking Gun 3. Legal Fees

Legal Consequences from IP Infringements Administrative Actions (ITC – in US/ Border Protection Measures in EU) Judicial Action (Court) 1. Injunctive Relief 2. Damages Monetary Compensation Litigation Costs & Expenses Criminal Sanction Loss of Market Loss of Good Will 1. Exclusion Orders 2. Cease & Desist Orders No Importations No Sales Litigation Costs & Expenses Shipment detention / Postpone/Confiscation 3. Customs Block 4. Place of -Trade show -Customs

Protecting Innovation Avoiding IP Risk Protecting Innovation Activating IP Asset Corporate IP Strategy

Mechanism to Avoid IP Risks Mechanism against IP Risks Potential IP Risks Mechanism against IP Risks Project Review IP-Related Database IP-Related Research Real-time IP Risk Alert

IP Risks Prevention Mechanism A. Project Review / Free to Operate Risky Patent Search Industrial Standards & Open Source To Design Around, to License or Reserve IP Cost? Patentability Review B. IP-Related Database License Status in Market Dangerous Patents Potential Litigations C. IP-Related Research ex: Android Issue/ Standard Issue/ Open Source/ … D. Real-Time IP Risks Alert ex: IP e-News/ IP-related litigation & Patent Monitor Report / IP Research Report

B. IP Indemnity from Buyers / Vendors: IP Affairs Management A. IP Cost Reservation: Industrial standards (2G/ 3G/ MPEG-2/ DVB-T/…) Visible Risk from On-going Litigations (Android-Related…) Ongoing License Negotiation From Trolls Issues & Others… B. IP Indemnity from Buyers / Vendors: IP Negotiation in OEM / ODM Agreement Components / Chipsets concerning Industrial Standards Contribution of Vendors C. IP License Agreement Management: Renewal & Termination Product Score / Definition Routine Audit

Strategy to Activate IP Assets Patent Portfolio 1. Monthly Review Patent Portfolios Patent Inventory Maintain or Give Up 2. Classify Patents in Patent Maps 3. Organize Portfolios by Field of Use By Product By Technology Strategy to Activate Granted Patents To License? To Sell? Cross License Tax Purposes