802.11n Multi-Party Offering Summary ULRTM Contracts, WFN1

802.11n Multi-Party Offering Summary
ULRTM Contracts, WFN1
Offering Summary
Transaction Summary
Multi-party offering of wireless communication standard essential patents identified by
the ticker symbol: WFN1
Eight Sponsors have contributed 194 patents essential to the IEEE 802.11n Standard
Columbia University
Mitsubishi Electric Research Laboratories, Inc.
Fraunhofer-Gesellschaft
Orange S.A.
JVCKENWOOD Corporation
Sony Corporation
Koninklijke Philips N.V.
The University of California
ULR Contract Details
ULR Contract
Standardized, non-exclusive license to 194 essential patents
Covered Product
802.11n compliant wireless chipsets
Contract Size
One thousand (1,000) wireless chipsets
Tranche A Price
Market determined
3
Technology Overview
Technology Summary
Portfolio Technology Coverage
•
The patents are essential to the 802.11n Standard, a
wireless networking protocol defined by the IEEE
•
Signal Synchronization and Channel Estimation
comprise over 50% of the portfolio
•
802.11n provides higher throughput for Wi-Fi access
•
Data Modulation for efficient transmissions
•
The technology underlying the Standard uses multiple
antennas to increase data rates and data throughputs
in wireless communications
•
Backward Compatibility with previous protocols
(802.11 a/b/g)
•
Frame format and coding techniques for increased
data throughput
•
802.11n security and encryption compliance
•
It is estimated that over 10 billion 802.11n wireless
chipsets have been or will be produced globally from
2009 to 2019 across a variety of products
2014 Shipments by Products
Patented Technology Distribution
Other
Backward
Compatibility 2%
6%
Security
9%
Other
14%
Access Points
8%
PCs
10%
Signal
Synchronization
29%
Frame
format/coding
13%
Smartphones
57%
Tablets
11%
Data Modulation
16%
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Channel Estimation
25%
802.11n Jurisdictional Coverage
The patent portfolio has significant strength due to expansive global coverage, including 63 U.S. assets
Total Patents
> 30
15 – 30
5 – 14
2–4
1
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Plan of Offering
Offering Structure
•
Issued in three Tranches: Tranche A, Tranche B and Tranche C
•
Total number of ULR contracts that will be included in the Offering is 2,500,000
•
Each successive Tranche will be issued only after the previous Tranche is fully sold
•
If Tranche C is fully sold, and 75% of all authorized and issued WFN1 ULR contracts have been Consumed (1), then followon offerings will be issued at a quantity and price determined immediately prior to the offering
(1)
Tranche Structure
Tranche Price
Tranche Quantity
Tranche A
Based upon bids from the
marketplace
50,000
Tranche B
No more than a 15%
Premium to the Closing
Price of Tranche A
TBD
Tranche C
No more than a 15%
Premium to the Price of
Tranche B
TBD
Follow-On Offering(s)
TBD
TBD
The terms “Consumption”, “Consume” and their variations refer to an Operational User’s filing of a report with the Registrar (IPXI in this Offering)
pursuant to the terms of a ULR contract whereby the Operational User receives IP rights from a ULR contract and the ULR contract is removed
from the Operational User’s Registry Account and is no longer available for trading.
6
Key Financial Benefits of Offering
• Purchase prior to March 16, 2015 to receive a 75% discount on amnesty units
Amnesty
(Immunity)
Program
• Purchase between March 16, 2015 and June 12, 2015 to receive a 67% discount on amnesty units
Extension
(Grandfather)
Provision
• Purchasers will be released from liability for past reported use covered by those contracts with respect to
the newly added patents of each new series, thereby expanding coverage without any additional
payment
• Purchase between June 12, 2015 and September 10, 2015 to receive a 50% discount on amnesty units
• Optional
Conversion to New
WFN Series
Contract
• 1 for 1
• 25% discount on the price difference between Series 1 and Series 2, expiring 90 days after the
announcement of new Series
• Purchasers who have previously licensed any of the patents will receive a pro-rated rebate of the
purchase price
Rebates
• Purchasers who report units made or sold after expiration of any of the patents will receive a pro-rated
rebate of the purchase price
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Next Steps
All Interested Parties Should…
Review the following
Follow up with IPXI
Submit bids for Tranche A
 Offering Memorandum (“OM”)
 Schedule a one-on-one meeting
 Maximum Price
− Access electronically via IPXI.com
− In-person
− Hard copy available upon request
− Via conference call
 Data room documents
 Become a Member
− No cost for Purchasing Members
− Anonymous
− Simple membership process
− The maximum price each purchaser is
willing to pay for each WFN1 ULR
contract
 Maximum Quantity
− The maximum quantity of WFN1 ULR
contracts each purchaser is willing to
purchase at the maximum price
Key Events
Roadshow
 One-on-one purchaser meetings,
webinars and other marketing
activities
Closing
 Tranche A is priced and listed
 Final Offering Memorandum is
printed and distributed
 Submission of Bids
Trading
 ULR contracts allocated to registry
accounts of purchaser
 Purchasers wire funds
 Secondary market opens on the
IPXI Trading Platform
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IPXI Overview
IPXI Company Overview
IPXI is revolutionizing the IP licensing industry by developing IP into a tradable asset class
•
World’s first financial exchange for non-exclusive licensing and trading of IP rights
•
Creates transparent and efficient technology transfer with standardized contracts, allowing for true
market value determination for technology
•
Provides an efficient mechanism for owners of standards essential patents (SEP) and other patent
owners to pool their complementary patents and license on reasonable and non-discriminatory terms
(RAND)
•
Fills a proven gap in current IP monetization alternatives and offers a unique opportunity for companies
to unlock meaningful value of IP
•
Enables entities the ability to efficiently purchase licensing rights
•
Establishes a market-based alternative to litigation-driven licensing
•
Open market model that is utilized by large and small corporations, university technology transfer
offices, and national laboratories
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Select IPXI Membership
Corporations
Universities
Research Laboratories
Financial Investors
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IPXI Board of Directors
Intellectual Property Experience
David Kappos
Special Legal Advisor to Board
 Partner, Cravath, Swaine & Moore LLP; Former Under Secretary of Commerce to the
United States and Director of the U.S. Patent and Trademark Office (USPTO)
Marshall Phelps

Former Corporate VP, IP Policy & Strategy at Microsoft and VP at IBM
Ruud Peters

Former CEO of Philips Intellectual Property & Standards
Paul Michel

Chief Circuit Judge (Retired)
James Malackowski

Chairman of Ocean Tomo, LLC
Financial Markets Experience
Michael Simoff

Portfolio Manager at Elliott Associates, L.P.
Edward Provost

President & COO of Chicago Board Options Exchange
Gerard Pannekoek

President & CEO of IPXI
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Questions and Answers
Contact Information
More Information
IPXI Deal Team Members: (312) 275-2701
WFN1 Specific Information
www.ipxi.com/wfn1
[email protected]
Kyle Dietz
[email protected]
Bob Moore
[email protected]
Brian Michalek
[email protected]
WFN1 Data Room Registration
www.ipxi.com/wfn1-data-room
Anil Abraham
[email protected]
Nate Marsh
[email protected]
Henry Wang
[email protected]
Membership Information
[email protected]
General Information on IPXI
www.ipxi.com