Open Invention Network’S Role – Guardian & Enabler

Open Source/Open Innovation: Opportunities and Threats that Shape the Global Collaboration Landscape • Agenda

– Nature of Open Source/Open Innovation

– Enabling a Community Rooted in Collaboration • OIN – Activities – Buy, Build, Share – Goals – Freedom and Choice – Scope – Linux System Definition

– Realities that Shape the Context in which OIN and the Linux Community Operate » Patent Speculators/Trolls » Operating Companies

– Conclusion

Nature of Open Source/Open Collaboration

• Sharing Ideas to Foster New Novelty

• “Outside In” Thinking

• Embracing the Heretic

• Source Code and API’s Open

• Global Engagement – Inclusive as Ideas/Value Flow Over Networks

• Beyond Simply Software e.g. 3D Printing

Nature of Open Source/Open Collaboration

•Project-Driven Frameworks

• Linux (1991)

• Apache, KDE, etc.

• Open Stack (Cloud De Facto Standards – 2012)

• Open Daylight (Software Defined Networking – 2013) Nature of Open Source/Open Collaboration

• Open AND Closed

• Patenting Still Viable/Valid Means of Codifying/Protecting Inventions

• Defensive Publications

• Companies Choose what to protect and what to keep open and invention occurs “higher in the stack”

• Open source creates opportunities and obligations • Technology Sharing • Community Values Nature of Open Source/Open Collaboration

•Technology Collaboration Agreement - Sharing and Building Architecture of the Future

•Intellectual Property Non-Aggression Agreement • Patents • Cross-License • Patent Pledges • Patent Pools/Acquisitions • Defensive Countermeasures • Infringement Insurance

• Trademarks e.g. OpenStack

• Copyrights e.g. GPL OIN as Structural Guardian of Linux and the Promise of Open Collaboration OIN Mission Summary

Open Innovation and Open Source Context – Distilling Collective Intelligence to Enable Discontinuous Innovation

OSS Technology Development Community (Linux and 350 Other Projects)

Parallel Community Commitments to Technology Development & Patent Non-Aggression

OIN Cross-Licensing Community (530+ Linux and Other OSS Participant Companies) OIN Mission Summary

Open Invention Network’s Role – Guardian & Enabler

•Open Invention Network – Industrial Firms Committed to Open Source and Linux and Engaged in Purchasing/Licensing of Patents & Parallel External Actions to Create a Patent “No Fly Zone” around Linux

• Patent Acquisitions - key patents in dozens of relevant technology areas e.g.

Biometrics

PHP

eCommerce

OIN Mission Summary

Open Invention Network’s Role – Guardian & Enabler

•Directed Invention (Universities, Individual Inventors, Acquired Patent- Centric SMEs) • Patents – 40-50 applications/year • Defensive Publications •Patents w/Defensive Publications

• Royalty Free Licenses to ALL OIN-owned Patents and Patents that are part of OIN Cross-License – FREE ACCESS in return for • Cross Licensing Commitment • Agreement to Forebear Linux-related Litigation

OIN Mission Summary

Open Invention Network’s Role – Guardian & Enabler

• Defensive Activities • One on One Assistance to Those Under Threat • Prior Art Identification • Linux Defenders • OS “Peer to Patent” - prior art to allow patent applications to be rejected or enable reduced claim scope • OS “Post-Issue Peer to Patent” – prior art to enable the potential invalidation of existing patents • “Defensive Publications” – statements of prior art that prevent new patents from issuing • “LinuxDefenders911” – 24/7 help line to those in ‘patent distress’ OIN Licensee US patents Holdings

Company Patents Applications IBM 65805 38737 OIN “Owned” IP Sony 33974 16175 NEC 27537 13039 Assets & Licensees Philips 25470 12700 Fujitsu Limited 23554 18446 Hewlett-Packard Company 22820 1585 > 530+ Licensees Cisco Systems, Inc. 6415 2701 (OIN Secures a Oracle 2664 1823 Quantum 1360 394 New Licensee Symantec Corp 937 111 Juniper Networks, Inc. 782 318 Every Third Day) Yahoo! Inc. 749 1898 Google 664 653 Novell 483 309 > 400+ Patents & HTC 171 228 Red Hat 157 242 Applications Fujitsu General Limited 156 70 NHN Corporation 40 202 Tom Tom International BV 32 18 > 250+ Defensive salesforce.com 25 114 University of Hull 16 10 Publications IGNIS Innovation Inc. 15 21 Bakbone 10 1 Facebook, Inc. 10 19 > 300,000 Patents Barracuda 7 35 Netgear, Inc. 7 8 & Applications in Accudata 2 1 Potential Cross- DeviceVM Inc. 2 1 FON (Fon Wireless Limited) 2 0 License/Grant SugarCRM 2 11 Nationwide Mutual Insurance Company1 0 Back Pool Ooma, Inc. 1 1 Rackspace Hosting, Inc 1 0 12 Note: For efficiency, only those licensees with US patents and/or applications are listed. OIN Mission Summary

Open Invention Network – Expanding Scope of Coverage

• New Developments

• Q1 2012 , Q3 2012 & Q2013 Expansion of Linux System Definition from 1100 to >2100 Software Packages & Commitment to Perform Annual Upgrades of the Linux System Definition and Solicit Package Nominations from across the Linux Community

• OIN Linux System Expansion Translates into:

• more cross-licensed patents in OIN License Pool

• expansion of arena in which OIN Licensees must forebear Linux- related litigation

• important step toward further demilitarization of patent landscape Linux Threat Landscape

Emergence of Global Dialogue on Patenting, Pledges and Promises

•Red Hat Authors the First Patent Promise in Linux/OSS World in 2001 (cross portfolio)

•IBM Makes Non-aggression Pledge Related to 500 patents dedicated to the Linux Patent Commons in 2005 (specific patents)

•UC Berkeley Professors Urban and Schultz Spur broader debate of non-aggression in software with the introduction of the Defensive Patent License in 2011 (cross portfolio)

•Twitter Announces a Inventor-friendly Patent Non-aggression Pledge in 2012 (cross portfolio)

•Google Opens Public Debate on the Subject and Simultaneously Announces Cloud Patent Pledge in late Q1 2013 (specific patents)

•USPTO Software Patent Roundtables with Kickoff at UC Santa Clara Law School in Winter 2012 and follow-up sessions in NYC, San Francisco and Washington, DC in Q1 2013 DPL Urban/Schultz

2001 2005 2011 2012 201314 OIN and Linux in the Context of Challenge 16 Current Realities Current Realities

Realities –

• Innovation – Discontinuous Innovation - that radically Redefines an Existing Market or Creates a New One - is Challenged by Incumbent Monopolists and Duopolists Seeking to Protect the Status Quo

• Patent Wars Emerge BUT Rationalization Can Be Expected to Develop Over Time as the Linux/Android Antagonists’ Proprietary Products/Platforms are Vulnerable to Defensive Patent Counter-Attack in the Mobile Space

• eBay Ruling and ITC Reform Will Serve to Limit Ability of Speculators and Antagonistic Operating Companies to Secure Injunctive Relief and Further Encourage Negotiated Cross-Licenses

Conclusion

Open Source/Linux is a Social Phenomenon with Far Reaching Ramifications for Innovation - Economic Principle of Increasing Returns Applies 1 + 1 +1 = 6

As a result -

– Open Source/Linux Enable Innovation in a Manner that is Threatening to Operating Companies Seeking to Restrict the Manner and Output of Invention – Direct Linux Antagonists

– Market Dynamics have given rise to Increased Patent “Troll Litigation” that Limits Innovation and Diverts Capital to Defense – Indirect Linux Antagonists

Conclusion

Open Source/Linux is a Social Phenomenon with Far Reaching Ramifications for Innovation - Economic Principle of Increasing Returns Applies 1 + 1 +1 = 6

As a result -

– Android Platform (not Linux in the main) and, more broadly, Mobile Linux subject to – direct and indirect – attack on patent grounds in a misguided effort to make total cost of ownership prohibitive for vendor and carrier deployment BUT in the end the market and freedom of choice wins out

– Emergence of Taizen (Samsung/Intel), FirefoxOS (Mozilla Foundation), Canonical OS (Canonical/Ubuntu), and WebOS (LG) in 2013 creates broader context for collaborative innovation and ‘critical mass’ of open source programs that ensure irreversible move to this new modality

Open Source is THE MODALITY To Best Tap the Collective Intelligence of a Global Population of Inventors/Developers/Technologists