1. Treasurer’s Report John Paul LESI Treasurer
Advancing the Business of Intellectual Property Globally
LESI International Management and Delegates Meeting San Diego, California April 29, 2018
Treasurer’s Report
John Paul
LESI Treasurer

2. Advancing the Business of Intellectual Property Globally
Financial summary
Revenue
Revenue is generally projected to be stable
Membership – Forecast decline of 500 members this year and associated revenue
Enhanced revenue – EPO education collaboration project / les Nouvelles contribution
Endowment fund – Exhausted
Dues amount – Propose no dues increase for the 11th year in a row
Expenses
Expenses are generally projected to be stable
Core initiatives – Maintain quality and quantity of publications, meetings, education
Enhancements – Add funding for three Young Member Congress meetings
New initiatives – Add funding for new projects: SIPO education, ISO IP standards, surveys, etc.
Budget
Balanced – Present a balanced budget for 2018 at the San Diego IMDM
Advancing the Business of Intellectual Property Globally

3. Income Sources & Projections for 2018
Advancing the Business of Intellectual Property Globally
Income Sources & Projections for 2018
Gross Income Total
$732,800
Advancing the Business of Intellectual Property Globally

4. Financial Highlights Year 2017 Budget Actual % Income $705,000
Advancing the Business of Intellectual Property Globally
Financial Highlights
Year 2017
Budget
Actual %
Income
$705,000
$640,319
90.7%
Expenses
$704,850
$594,062
84.3%
Net Income
$150
$46,257
Year 2018
$732,800
$731,350
$1,450
2017 Income issues: membership decreases and payment delays
2017 Expense issues: kept under careful control
2017 Timing issue: some 2017 revenue was received in early 2018
Advancing the Business of Intellectual Property Globally

5. 2018 Budget Breakdown Income 2018 Budget Membership Dues (unified)
Advancing the Business of Intellectual Property Globally
2018 Budget Breakdown
Income
2018 Budget
Membership Dues (unified)
$524,000
Publications (including Sales, Advertising, and Royalties)
$23,000
Meetings (including registration and sponsorship)
$105,000
Special Projects (GTIF, YMC, RR, ISO, SIPO, etc.)
Financial and Other
$81,800
Total Income
$732,800
Advancing the Business of Intellectual Property Globally

6. 2018 Budget Breakdown Expenses 2018 Budget LESI Committees $16,500
Advancing the Business of Intellectual Property Globally
2018 Budget Breakdown
Expenses
2018 Budget
LESI Committees
$16,500
Communications (Website)
$25,000
Publications
$209,750
General and Administrative
$231,000
LESI Directors
$85,000
Meetings
$105,000
Endowment Projects
Special Projects (GTIF, YMC, RR, ISO, SIPO, etc.)
$17,500
Total Expenses
$731,350
Advancing the Business of Intellectual Property Globally

7. 2018 Financial Notes Income Valuable new projects require funding
Advancing the Business of Intellectual Property Globally
2018 Financial Notes
Income
Valuable new projects require funding
Membership and dues have not increased
Goal: How to fund new projects
Expenses
Expenses declined by 40% in the past 5 years
Meetings expenses significantly reduced
Closely work together with host society
Better management of meetings.
Advancing the Business of Intellectual Property Globally

8. Advancing the Business of Intellectual Property Globally
2018 Financial Notes
Dues
Same dues rate per member since 2007
Based on December 31st membership
Confirm membership number before January invoice
Investment Income
Cash in investment accounts
Conservative, risk adverse, preserve capital
Audit Process
LESI follows NGO best practices
Annual financial review, and full audit every 3 years
Advancing the Business of Intellectual Property Globally

9. National membership profile
22 smaller societies total 1200 members
11 medium societies total 4500 members
Largest society (USA&C) totals 2700 members
Smaller <100 members
Medium (between 100 and 300) members
Advancing the Business of Intellectual Property Globally

10. Advancing the Business of Intellectual Property Globally
Membership Trends
Membership increase:
LES Germany
LES France
LES Korea
LES Japan
LES Italy
LES Scandinavia
LES Turkey
LES Benelux
LES Mexico
Membership decrease:
LES USA & Canada
LES Britain & Ireland
LES Arab Countries
LES ANZ
LES China
LES South Africa
Based on average growth/decline rate for the past 10 years, which shows a stable trend. Year-to-year results will vary.
Advancing the Business of Intellectual Property Globally

11. Advancing the Business of Intellectual Property Globally
Global Membership
2014 – 9,041 members
2015 – 9,037 members
2016 – 8,745 members
2017 – 9,169 members
2018 – 8,600 members
Advancing the Business of Intellectual Property Globally

12. LESI 2018 financial strategy
Goal – support the most important needs of the national and regional societies and their members
The reality – many great opportunities, but limited money
General financial philosophy
careful and conservative
balanced budget
avoid dues increase
Specific financial philosophy
targeted
discrete spending with global impact
Advancing the Business of Intellectual Property Globally

13. Examples of implementation of LESI financial strategy
Support key initiatives of national societies
US/C royalty rate survey
China patent office international IP education program
Support collaborate with important IP institutions
EPO – education collaboration
ISO – IP standards initiative
Invest in the future
YMC event sponsorships for growing young membership
Advancing the Business of Intellectual Property Globally

14. Questions? Comments? What can LESI do for you?
Advancing the Business of Intellectual Property Globally
Questions? Comments? What can LESI do for you?