1. Indemnification: A Drama in 3 Acts
David Simon -- Sr. VP, Intellectual Property, Salesforce
Isabella Fu – Assoc. General Counsel, Microsoft

2. Cast and Setting
David: In-house counsel for CarChips, the proud maker of CarFix, a system on a chip for automobile diagnostics
Isabella: In-house counsel for FastCar, who purchases and uses CarFix in its entire fleet
TIER 3
TIER 2
TIER 1

3. Act 1: CarChips and FastCar agree to this Indemnification Clause
If a third party asserts a claim against Customer, that a
CarChip product infringes a patent, CarChips will
defend Client against the claim and pay amounts
finally awarded by a court or included in a settlement approved by CarChips
CarChips has no responsibility for claims based in whole or in part by non-CarChip Products, items not provided by CarChips or any violation of third party rights caused by Client’s content, materials, designs or specifications.
TIER 3
TIER 2
TIER 1

4. Act 2 (1 year later): FastCar gets letter from InventionCo:
“InventionCo is the owner of hundreds of high quality patents that may be of interest to FastCar, as it is likely that you implement or will implement several technologies claimed in the portfolio. Examples include patents covering fuel injection, intelligent braking, traction sensing, and diagnostics. See, for example, U.S. Patent Nos. 7,111,111; 7,222,222; 7,333,333, 7,444,444, and 7,555,555. A license is available for a reasonable fee if you act now.”
TIER 3
TIER 2
TIER 1

5. Act 3, Scene 1 (6 months later):
FastCar gets sued by InventionCo on U.S. Patent Nos. 7,111,111; 7,222,222; 7,333,333, and 7,444,444
‘111 relates to fuel injection, and ‘222 relates to braking
‘333 relates to a method of checking various components to aid in diagnostics
‘444 relates to a chip performing diagnostics
TIER 3
TIER 2
TIER 1

6. Act 3, Scene 2 (3 months later):
InventionCo serves infringement contentions
‘333 relates to a method of checking various components to aid in diagnostics
Claim chart points to CarFix chip for some elements, wireless communications chips for others, and various sensors in the cars for other elements
‘444 relates to a chip performing diagnostics
Claim chart points to CarFix chip for all elements
Claim charts for ‘111 and ‘222 have nothing to do with CarFix chip
TIER 3
TIER 2
TIER 1