June 6, 2005Copyright Business Metamorphosis LLC 1 Growing Revenues from your Intellectual Property With BML’s Strategic Opportunity Cube Finding Opportunities in Information 1- Anthony Trippe, Identifying Haystacks from Space... a Patinformatics 1 tool

June 6, 2005 Copyright Business Metamorphosis LLC 2 The Value of Intellectual Property n “In a strictly legal sense intellectual property is a nebulous subject, hard even for the lawyers to master and puzzling for anyone else-- including the people who come up with good ideas. n One things is for certain however: The market for intellectual property generates and enormous amount of money. n And this money comes from all fronts, from those who own valuable intangible assets to those who make a living out of lawyering, maintaining and managing the intangible assets of others” The Value of a Good Idea, Silver Lake Press

June 6, 2005 Copyright Business Metamorphosis LLC 3 Where’s the Value? n Selling the IP n Licensing the IP –Limited Licenses n Selling the Company n Investing in IP – Making the right choices

June 6, 2005 Copyright Business Metamorphosis LLC 4 Extracting the Value The Real Estate Analogy n Real Estate Broker –Makes Deals n Real Estate Appraiser –Appraises Real Estate n Real Estate Surveyor –Measures Real Estate n Intellectual Property Broker –Makes Deals involving IP n IP Valuer –Values Intellectual Property n Intellectual Property Cartographer –Measures and organizes Intellectual Property Intellectual Asset Management

June 6, 2005 Copyright Business Metamorphosis LLC 5 Measuring the Value Location, Location, Location Measuring the value of patents is like measuring that of real estate. A patent’s value depends on where it is located in a landscape formed by patents held by a company and patents held by its competitors

June 6, 2005 Copyright Business Metamorphosis LLC 6 Valuation Methods n Income Method n *CAV n **Black Shoals-- Option Method n Asset Method * Ted Haglein " A new method to value Intellectual Property" AIPLA Quarterly Journal (30 AIPLA Q.J. 353) ** Nir Kossovsky, " Is the Average Patent Worthless?" Intellectual Asset Management, Aug/Sept 2004 pp 7-10

June 6, 2005 Copyright Business Metamorphosis LLC 7 The Strategic Opportunity Cube Technology Applications Markets Similar Content Choice of Perspectives

June 6, 2005 Copyright Business Metamorphosis LLC 8 Example from an analysis using the Strategic Opportunity Cube n Two companies who hold patents are contemplating a merger or acquisition-- n One has about twice the number of patents as the other. But what is the value of the patents of one company to the other? Do we simply count them?

June 6, 2005 Copyright Business Metamorphosis LLC 9 Technology Most in Common Key Cell- Most Patents in Common Technology/Product Cross Section Company A Company B Both Products Technologies

June 6, 2005 Copyright Business Metamorphosis LLC 10 Snapshot of Key Cell

June 6, 2005 Copyright Business Metamorphosis LLC 11 Learning's from Analysis n Both Companies patent most heavily in fundamental areas of semiconductor manufacture –Optical Lithography –Silicon Refining –Defect Identification n The area with the most similar patents is fundamental uses of Optical Lithography - –By purchasing Motorola,Texas Instruments more than doubles its portfolio in this area However the snapshot shows that almost all of those patents are by Honsinger applied to Analog Conversion- The markets for TI and Motorola are totally separate n Motorola’s Unique patents are in Optical Switching and ASICS