2. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 2 Breakout Session #1205 Jason Rushin, Product Marketing Nextance Tuesday, April 11 1:30pm - 2:30pm Maximizing Your IP Value

3. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 3 When We Talk About Intellectual Property, What Do We Mean? Inbound and Outbound Licensing of: –Patents –Trademarks –Copyrights –Trade secrets –Know-how

4. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 4 Evolution of IP Cost CenterCost Center “Think Tank”“Think Tank” Revenue TargetsRevenue Targets Performance StandardsPerformance Standards Then Now R&D Competition Time & Resources Marketplace Static & PredictableStatic & Predictable Confined to IndustryConfined to Industry Instant, Dynamic & IntenseInstant, Dynamic & Intense New EntrantsNew Entrants Long Dev & Large Windows of OpptyLong Dev & Large Windows of Oppty Available ResourcesAvailable Resources Short Dev Cycles & Small Windows of OpptyShort Dev Cycles & Small Windows of Oppty Constrained ResourcesConstrained Resources RegionalRegional Sequential LaunchesSequential Launches GlobalGlobal Simultaneous LaunchesSimultaneous Launches Philosophy Indigenous Development – We will build everything we need (total ownership) Co-opetition – We will source from anywhere and monetize market opportunities any way we can.

5. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 5 Revenue: Make your number Strategic Issues With IP ‘Idea to Cash’ cycle is too long Revenue leakage and inability to manage royalty receipts Payments made on un-used IP Assets Lawsuits: Stay out of Court Growing compliance and IP infringement violations Rising Legal costs and lawsuits ($92 Million) Rising demands of regulatory compliance reporting Assets: Know your IP Inventory IP is not captured and protected Cannot tell productive IP from un-used IP (Stale Inventory) Cost of carrying “Dead” IP

6. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 6 Basic Productivity Issues Negotiation Issues Sales not clear on latest negotiation policies and limits Slow and painful negotiation process, wrought with errors Royalty Management Issues Translating commitments and date based obligations to royalties Validation of terms for financial transactions (billing/invoicing) Cannot find contracts when questions are asked or amendments required Audit process slow and painful Operational Challenges Exist, Too

7. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 7 Three Main Issues and Their Impact $ $ $ License In Visibility Standardization Control License Out $ $ $ Leaking money Unwanted risk Compliance Violations

8. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 8 Is Visibility a Problem For You? License Out IP What assets have you licensed? Where are you using them? What is the business risk? Which IP assets are under leveraged? Are your partners in compliance with their licensing agreements? Do you know if you are maximizing your revenue opportunities? Can you forecast royalties owed to you accurately? Have you ever licensed the same IP rights to 2 different parties?

9. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 9 Is Visibility a Problem For You? License In IP Are you paying for and licensing IP you already own? Can your existing IP assets fill your product requirements? Are you in compliance with all terms of your licensing agreement? Do you have long term rights to the IP that is critical to your key products? Can you track, manage & validate your royalty obligations? –Are you making your payments on time? –Are your payments for the right amount?

10. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 10 Is Standardization a Problem For You? Do you have standard templates that help drive consistent terms across agreements? Do you have a standard method for tracking licensing contracts and their critical business information?

11. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 11 Is Control A Problem For You? Do you have internal controls around your agreement processes? –What goes in contracts –Who approves and how they are approved Do You have an audit trail of your process? Do you know where your agreements are in the process? Do you know what your agreement cycle times are? Do you know where your bottlenecks are?

12. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 12 Three Main Issues and Their Impact $ $ $ License In Visibility Standardization Control License Out $ $ $ Leaking money Unwanted risk Compliance Violations

13. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 13 Using Contract Management Solutions to Maximize IP Value

14. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 14 Centralize IP Contracts, Then Increase Standardization and Control

15. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 15 ASSET DATABASE Visibility Enables Asset Portfolio Management Gain complete visibility into IP asset information Identify opportunities for revenue through multi-variable analysis Mitigate risk by tracking and managing encumbrances Reduce expenses by retiring unused assets All Assets ASSET DATABASE All Licensable Assets: NOT Restricted to Internal Use Only ASSET DATABASE All Licensable Assets for Auto Industry ASSET DATABASE All Licensable Auto Industry Assets with protection in the EU Portfolio for offer to Customers

16. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 16 Visibility Improves Asset Utilization OPTIMAL ASSET UTILIZATION (18% of our assets generate 83% of revenue) Improve deal and IP ROI by investing resources into your prized assets Protect your prized assets across all relevant geographies Monitor all agreements that reference your prized assets ASSET DATABASE All Assets ASSET DATABASE Assets Generating 80% of Royalties Marketing & Sales Plan for High Impact Assets Sales Plans Pricing Plans Agreement Terms Multiple Agreements on IP Asset

17. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 17 Control Over Your Contract Processes T Library CFO Pull contract template from library Biz. Terms require CFO approval Negotiation / Collaboration Legal / IP Partner Deal Term Sheet C VP Licensing IP Rel. Approval IP release requires VP, Licensing approval Mitigate Risk; Ensure compliance during contract creation, negotiation Ensure continuous migration to corporate standard contract terms Improve speed to market by decreasing cycle times Document compliance through audit trails

18. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 18 EXEC Date & Event based ESCALATION ALERTS Legal / IP Partner Account Manager Visibility and Standardization Enable Commitment & Obligation Management C Nextance Intelligent Enterprise Set & Manage obligations, commitments & milestones Customer Mgmt Team Date & Event based person specific alerts Avoid Penalties: Proactive payment and commitment management Improved Partner Satisfaction & Relationships Reduce audit time by maintaining an e-audit trail of actions, events and authors

19. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 19 Visibility and Standardization Enable Royalty Management (License In) C Nextance Intelligent Enterprise Legal / IP Partner Account Manager Set & Manage obligations, commitments & milestones Customer Mgmt Team ERP Finance Team 1 Payment Due Date Trigger Partner ((LICENSE IN) 2 Send Revenue Report 3 Invoice 4 Is invoice correct? 5 Validation Result 6 Payment Avoid Penalties: Proactive payment and commitment management Ensure correct & timely payments: Bi-directional integration to facilitate 4 way invoice matching

20. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 20 Visibility and Standardization Improve Royalty Management C Nextance Intelligent Enterprise Legal / IP Partner Account Manager Manages Asset Lifecycle: Royalties, Commitments, Milestones etc. SALES/CRM SYSTEMS EXEC 1 What is our possible royalty commitment for next 6 mos? 2 What is our sales forecast? 3 Sales Forecast #s 4 Royalty Forecast Integration with Sales & CRM systems Improved Cash Flow Visibility

21. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 21 Gain the MOST value from your Intellectual Property Increase Revenue –Ensure optimal utilization of intellectual assets –Increase the number of productive intellectual assets Enhance Business Performance –Improve process efficiency and effectiveness across the end-to-end IP process chain –Allocate resources optimally by measuring and tracking critical metrics such as Cost / IP, ROI / IP, ROI / Deal etc. Ensure Compliance And Mitigate Risk –Regulatory Compliance – Ensure your contract terms are as per the guidelines mandated by the regulatory authorities –Operational Compliance – Enforce company best practices & standards across the enterprise

22. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 22 Nextance Overview  Departmental & enterprise-wide installations  40+ countries  65,000 Users  Multiple languages  40+ Customers  100 Projects  Oil, Gas, Chemical  Energy  Healthcare  Biotech  Technology  Pharmaceuticals  Financial Services  Telco  Services  IT  Goods  Customer  OEM  License  CDA/NDA Successful DeploymentsIndustries Contract Types

23. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 23 Nextance IP Management Clients

24. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 24 Nextance solution  End-to-end solution to manage IP process  Centralized repository to store all IP  Web-based access for global users, role-based security Benefits  “One stop IP shop”  Centralized view of in- house and competitor assets for competitive advantage  Advanced tracking and reporting of IP  Sophisticated budget and payment management Business issues  Disparate databases for tracking IP  Inability to monitor competitors’ IP  Difficulty in tracking IP status globally  Complex budgets/payments process

25. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 25  Increased revenues from royalty collections  Reduced risk on outbound royalty payments  Common process and consistent standards across departments  Improved efficiency in intellectual property management Business issues  Missed revenue opportunities in inbound royalties  Merging four companies with inconsistent processes  Compliance issues with outbound royalty payments  Complex royalty agreements Nextance solution  End-to-end Intellectual Property solution including Inventory Management and Deal Management  Agreement repository  Integrations into Active Directory authentication, LDAP Directory, CPI Patents and Trademarks Benefits

26. April 10–12, 2006 Hyatt Regency Atlanta Atlanta, GA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 26 Your One Key Takeaway… Effective IP management is effective contract management