1. © 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential 1 Intellectual Property in Canada Morgan N. Elliott Global Policy & Government Affairs

2. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 2 Cisco Systems: Worldwide Leader in Networking for the Internet Cisco Products Power the Internet 500+ worldwide patents 1200 filed, many more in the pipeline ODC approx. $100M/yr in R&D

3. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 3 The Value of IP  Fortune 500: 45% - 75% of company valuation Represents highest growth area in global economy  Strength of company’s brand makes it vulnerable  Nations to negotiate Anti-Counterfeiting Trade Agreement (ACTA)  Resources dedicated to IP theft  Anton Pillar Orders (civil search & seizure warrants)

4. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 4 Operation Cisco Raider Joint FBI, Homeland Security, RCMP investigation Highly successful, coordinated law enforcement effort Major case designation RCMP seize 1600 counterfeit parts, worth $2M+ - destined to U.S. U.S. agencies nab more than 20,000 products – nearly $14M Joint operations seize 74,000+ products – more than $78M Highly successful, coordinated law enforcement effort Major case designation RCMP seize 1600 counterfeit parts, worth $2M+ - destined to U.S. U.S. agencies nab more than 20,000 products – nearly $14M Joint operations seize 74,000+ products – more than $78M

5. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 5 Protecting Investments  IP theft doesn’t: – contribute to innovation – help increase productivity – help create jobs – protect social programs  IP theft does: – undermine gov’t revenues – support organized crime – lead to death – has funded terrorism

6. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 6 What needs to be done?  Should gov’t moderate between rights holders & other players?  Additional legislation to better secure IP protection?  If rules implemented - Ex-ante vs. Ex-post?  Are general competition laws a sufficient remedy?  Risk of over regulation?

7. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 7 Value of Intellectual Property

8. 8 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential