How to monetize your patent portfolio on a limited budget: 1. portfolio assessment 2. licensing or sale - patent broker 3. licensing or sale - do it yourself 4. litigation - non-practicing entity 5. litigation - do it yourself

1. FIVE STRATEGIES TO MONETIZE YOUR PATENT PORTFOLIO ON A SMALL CLIENT BUDGETMichael A. Shimokaji WWW.SHIMOKAJI.COM 1

2. OVERVIEW•PORTFOLIO ASSESSMENT•LICENSING OR SALE –PATENT BROKER•LICENSING OR SALE –DO IT YOURSELF•LITIGATION –NONPRACTICING ENTITY•LITIGATION –DO IT YOURSELF WWW.SHIMOKAJI.COM

3. PORTFOLIO ASSESSMENT•What’s In Your Portfolio Group patents by technology For each group – How many US patents/applications How many foreign patents/applications WWW.SHIMOKAJI.COM 3

4. PORTFOLIO ASSESSMENT•Who Are Your Primary Competitors For each group of your patents – Who are the primary US competitors Who are the primary foreign competitors WWW.SHIMOKAJI.COM 4

5. PORTFOLIO ASSESSMENT•Who Are Your Primary Competitors Factors to consider – Number of patents in technology area Number of forward citations of your patents WWW.SHIMOKAJI.COM 5

6. PORTFOLIO ASSESSMENT•What is the Market Size For each technology group – Number of product units being sold by all Gross revenue being generated by all WWW.SHIMOKAJI.COM 6

7. PORTFOLIO ASSESSMENT•Who/What is Infringing Your Portfolio Claim charts are needed – Prepared by a patent professional, not client Neutral presentation, not as an advocate WWW.SHIMOKAJI.COM 7

8. PORTFOLIO ASSESSMENT•If No Infringement Found Next strategy steps will be difficult to achieve WWW.SHIMOKAJI.COM 8

9. LICENSING OR SALEPATENT BROKER•What is a Patent Broker Assist buyers and sellers of patent portfolios Some only represent sellers Most are NOT interested in licensing WWW.SHIMOKAJI.COM 9

10. LICENSING OR SALEPATENT BROKER•What Value Does a Patent Broker Provide Access to known buyers and sellers Marketing and sales infrastructure Marketing and sales expertise Eliminates your time commitment WWW.SHIMOKAJI.COM 10

11. LICENSING OR SALEPATENT BROKER•What Do Patent Brokers Charge Most charge a success fee based on a percentage of the transaction price Percentages vary –in the range of 15% to 35% Out of pocket costs (e.g., marketing) are not extra WWW.SHIMOKAJI.COM 11

12. LICENSING OR SALEPATENT BROKER•What Do Patent Brokers Charge Some charge an up front fee Fees vary –up to around $25K WWW.SHIMOKAJI.COM 12

13. LICENSING OR SALEPATENT BROKER•What Do Patent Brokers Look For Evidence of use/infringement Standard essential patents Large revenue market High tech portfolios WWW.SHIMOKAJI.COM 13

14. LICENSING OR SALEDO IT YOURSELF•Why Do It Yourself Save money on the broker fee Your portfolio is not what a broker seeks WWW.SHIMOKAJI.COM 14

15. LICENSING OR SALEDO IT YOURSELF•How To Do It Yourself Create marketing package –why a buyer should buy Why should a buyer buy your portfolio WWW.SHIMOKAJI.COM 15

16. LICENSING OR SALEDO IT YOURSELF•How To Do It Yourself Identify potential buyers Your competitors Patentees who have cited your patents Non-practicing entities WWW.SHIMOKAJI.COM 16

17. LICENSING OR SALEDO IT YOURSELF•How To Do It Yourself Establish a sales price Comparable sales WWW.SHIMOKAJI.COM 17

18. LICENSING OR SALEDO IT YOURSELF•How To Do It Yourself Establish a sales mechanism Offer at an established price Take all bids WWW.SHIMOKAJI.COM 18

19. LICENSING OR SALEDO IT YOURSELF•How To Do It Yourself Negotiate and close WWW.SHIMOKAJI.COM 19

20. LITIGATIONNON-PRACTICING ENTITY•What is a Non-Practicing Entity They come in many forms Some aggregate patents for defensive purposes Others are combinations of operating companies WWW.SHIMOKAJI.COM 20

21. LITIGATIONNON-PRACTICING ENTITY•What Value Does an NPE Provide Similar to patent brokers Saves you time Saves you up front out of pocket costs WWW.SHIMOKAJI.COM 21

22. LITIGATIONNON-PRACTICING ENTITY•What Value Does an NPE Provide Similar to patent brokers Provides insulation against counterclaims Provides litigation management expertise WWW.SHIMOKAJI.COM 22

23. LITIGATIONNON-PRACTICING ENTITY•What Do NPEs Charge Varies –But Often a Percentage of Net Recovery Percentage may be 40% or more WWW.SHIMOKAJI.COM 23

24. LITIGATIONNON-PRACTICING ENTITY•What Do NPEs Look For Same as patent brokers But with greater emphasis on infringement WWW.SHIMOKAJI.COM 24

25. LITIGATIONDO IT YOURSELF•Why Do It Yourself Save money on the NPE fee Your portfolio is not what an NPE seeks WWW.SHIMOKAJI.COM 25

26. LITIGATIONDO IT YOURSELF•How To Do It Yourself Create a marketing package –FOR ATTORNEYS Emphasis on claim charts WWW.SHIMOKAJI.COM 26

27. LITIGATIONDO IT YOURSELF•How To Do It Yourself You want to “sell” your case to a contingency law firm Make the law firm’s due diligence easy WWW.SHIMOKAJI.COM 27

28. LITIGATIONDO IT YOURSELF•How To Do It Yourself Identify potential law firms Internet search Referrals from your patent prosecution counsel WWW.SHIMOKAJI.COM 28

29. LITIGATIONDO IT YOURSELF•How To Do It Yourself “Sales” mechanism Smile and dial WWW.SHIMOKAJI.COM 29

30. LITIGATIONDO IT YOURSELF•How To Do It Yourself Concurrent licensing and litigation Some infringers resolved through licensing Other infringers resolved through litigation WWW.SHIMOKAJI.COM 30

31. QUESTIONS WWW.SHIMOKAJI.COM 31