1. Fostering Innovation & Competitiveness Via Strong IP Protection Greg Slater Director, Global Trade and Competition Policy Intel Corporation

2. 2 Must Have: Innovation, IP and a Market 1968 – Founded on $10,000 and $2.5M in debentures 1969 – 3101bipolar Schottkey RAM 1971 – World’s 1 st EPROMs and 1 st Microprocessor 4004 Intel Founded to make Semiconductor Memories IP allows $2.5M funding based on technology and ability to protect competitive advantage and grow business through use of patents, copyrights and trade secrets Busicom (Japanese calculator manufacturer) seeks custom multi IC calculator New market + truly novel innovative insight open a totally new and competitive market for microprocessors Market stimulates innovation and competition IP protects innovation for use as a business asset Innovative products that exceed market requirements better than competition usually win the market Innovation builds on innovation that can open new markets Trademarks: Intel Purchases company name from “Intelco”

3. 3 Innovation, IP and Market: Drive Growth 1968 – Founded on $10,000 and $2.5M in debentures 1969 – 1 st Product: 3101 bipolar Schottkey RAM 1971 – Worlds 1 st EPROMs and 1 st Microprocessor 4004 1972 – 8008 and Digital Watches 1973 – Development tools and software 1974 – 8080 1977 – Bubble Memory and EPROMs 1978 – 8086 1979 – Fortune 500 1981 – IBM selects Intel 8088 for 1 st PC 1985 – 80386, drops DRAMS Enters Supercomputers iPSC/1 1982 – 80286 1980 – Ethernet project with Digital and Xerox; systems Building on innovation Processors and memory progress significantly New similar opportunities are tried (semiconductor watches) Complimentary technologies developed (tools, systems) Some businesses succeeded; others were dropped (to be expected) Ability to meet market requirements is critical for success Innovation can provide new competitive solutions but cannot guarantee success IP rewards successful innovative ideas and encourages new ideas

4. 4 Market, Innovation and IP Models: They Constantly Evolve 1968 – Founded 1991 – Intel® Inside campaign 1995 – Intel chipsets based on PCI standard 1985 – 80386, iPSC/1 2000 – Pentium ®4 processors, PRO Wireless LAN Innovation and IP continue to play a role as markets evolve In areas of rapid innovation building on innovation many companies use IP to encourage “design freedom” but protect against copying Public interface standards allow for cooperation on the interface while competing on implementation Market dynamics continue to drive a convergence of industries and new ways to cooperate and compete 1992 – Transition to PC systems 1993 – Pentium® Processor, brand recognition 1997 – StrataFlash® memory 2003 – Centrino® mobile technology PXA800Fcellular processor 2005/6 – T ransition to platforms and new businesses - Increasing complexity and interoperability between products of multiple vendors (large and small) increases need for collaboration & standardization 2007/8 – Multi-Core Microprocessor