1. 1 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. AIPLA Mid Winter Meeting Special Committee on Standards and Open Source Michele Herman Intellectual Ventures January 25, 2012

2. 2 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. What is a Standard? [a] prescribed set of rules, conditions, or requirements concerning definitions of terms; classification of components; specification of materials, performance, or operations; delineation of procedures; or measurement of quantity and quality in describing materials, products, systems, services, or practices Reference: National Institute of Standards and Technology, The Abc's of Standards-Related Activities in The United States, available at http://ts.nist.gov/Standards/Conformity/stdpmr.cfm.

3. 3 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. Types Of Standards Government Mandated - Regulatory and Legislative (e.g., Safety, National Security, Privacy, Quality) Voluntary Open Consensus Based Standards (e.g., Interoperability, Business forms) NTTAA OMB Circular A -119

4. 4 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. JTC1 IEC AFNOR DIN BSI SCC GOST JISC CESI Other DGN ANSI National Standards Bodies ITU R D T PASC ETSI CEN/ CENELEC ICAITI ECMA CANENA COPANT ISO Regional Standards Bodies Global Standards Bodies Global Standards Arena Other Consortia ANSI-Accredited Source: Based on diagram from Clyde Camp http://www.crcamp.com

5. 5 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. DISCLAIMER The information set forth in this presentation is accurate to the best of our knowledge. However, all such information is non-binding and subject to change. Accordingly, such information should not be relied on for the purpose of defining the terms of any particular engagement or transaction. Rather, such terms can only be defined pursuant to properly executed and definitive legal agreements that have been approved in advance by our Board.

6. 6 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved.

7. 7 Standards Development Process Final Approval by Oversight Body Initiate Project Develop Committee Draft Agree on Committee Draft Issue Committee Draft Ballot Resolve Ballot Comments Develop Consensus and Issue New Ballot Develop Consensus and Issue Final Ballot Publish

8. 8 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. SSO Standards Development Process Comparison ITUETSITIAWiMAX Project Initiation Min. 4 mo plus time for 4 submissions & approvals Min. 1 mo plus time for TB adoption Formulating Group (FG) submits Internal Proj Req At least 61% WG and Tech Steering Comm (TSC) must approve; WG mtg 7 day notice WG Approval Time for SG to create and approve standard 3 drafts: early, stable, & approval WG approval Time for FG to create standard, reach consensus, and vote Time for WG to create standard; Min. 14 day ballot (61% WG approval); resolve tech-critical issues Review Process Min. 3 mo for 70% of Member States to approve Min. 30 days for 71% TB approval Min. 30 days for 51% of quorum to approve Min. 30 day IPR review by all members Final Approval Unopposed w/i SG; Director notification w/i 4 wks W/i 60 days draft to members; 60 day vote; publish w/i 30 days Min. 2 wks notice prior to FG mtg where FG recommends publication of std At least 61% TSC approval; President approval; Board confirmation Total Time to Publication Minimum 7 mo plus 4 submissions & approvals, creation of standard, final SG approval, notification Approx 7 mo plus time for TB adoption, creation of standard, 3 WG drafts and WG approval Minimum 1.5 mo plus time for FG adoption, creation of standard, FG vote; Secretariat approval Minimum 1.75 mo plus time for creation of spec, 3 approvals, and 1 confirmation

9. 9 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. Primary Components of an SSO Patent Policy SSO PATENT POLICY* Covered Patent Claims DISCLOSURE OBLIGATION LICENSING COMMITMENT Common Frameworks Disclosure Based with License Statement (RAND, RAND-RF, no license Membership Based (RAND or RAND-RF) Membership Based with Opt Out (RAND, RAND-RF) Membership Based with Patent Disclosure (RAND)

10. 10 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. Possible IPR Trigger Points Joining SSO Contributing Ballot Reviews Draft Approved by Technical Committee Final Version Approved by Oversight Body Publication

11. 11 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. SSO Patent Policy Comparison Formal SSOs ISO/IEC/ITUANSIETSICESI Mandatory DisclosureNo Yes (no search required) Limited to Essential Claims Yes Parties Subject to Policy ParticipantsNoneMembersMembers (but disclosure is limited to knowledge of members’ representatives) License StatementRAND, RAND-RF, or unwilling to license RAND or RAND- RF but Patent Holder is not required to submit statement FRAND or unwilling to license RAND-RF, POOL, RAND, or no license (not available for own contributions) NegotiationsPrivately between licensor and licensee Does not address

12. 12 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. SSO Patent Policy Comparison CONSORTIA Bluetooth SIGWI-FI Alliance MIPI Alliance Mobile Industry Processor Interface *CCSA China Communications Standards Association Mandatory DisclosureNoNo ( Disclosure is encouraged and based on personal knowledge, no search is required) NoYes (no search required) Limited to Necessary (e.g. Essential) Claims Yes No Parties Subject to Policy Members Members, Non- members (e.g. Participants), Observers License Commitment (is required as a condition of membership) RFRAND, RF, or unwilling to license ( Licensing of Necessary Claims requires the submission of a Free Form Patent Statement) Hybrid RF/RANDRAND, RF, or unwilling to license ( Licensing of related patents requires submission of the CCSA Patent Licensing Declaration Form and/or a Free Form Patent Statement) NegotiationsN/APrivately between licensor and licensee * CCSA is technically considered a National Body of China

13. 13 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. How is the Ecosystem Doing? Criticism of the Standards Ecosystem Market confusion: Too complicated to navigate Inefficient: Too many SSOs with too much redundancy High Cost: Too many policies and procedures to track Praise for the Standards Ecosystem Very responsive to market needs Inclusive of all interests and stakeholders Drives innovation Values IP creation

14. 14 Copyright © 2012 Intellectual Ventures Management, LLC (IV). All rights reserved. Global Reaction US-based SSOs and companies create and own majority of standards-based IP Other countries are pursuing policies to promote their own indigenous innovation and to generate domestic IP Draft EU Horizontal Guidelines BSI PAS to Standardize Standards SAC/CNIS proposals for single IPR policy and implementation rules in China India’s eGovernment standards patent policy