AQUA Licensing Portfolio Offering

The Telecommunications Portfolio Offering

Portfolio Overview

has been retained to manage the sale of a large telecommunications patent portfolio AQUA(“Telecommunications Portfolio”) previously owned by Nokia and developed by Alcatel-Lucent (ALU)/Bell Labs, Nokia Technologies and Nokia Networks.

The portfolio consists of 4,260 patent families, comprised of 6,069 granted patents and 734 patent applications.

ALU was formed in 2006 through a combination of Alcatel and Lucent Technologies businesses. The assets include patents from the former AT&T Bell Labs Laboratory, which is also, is fully owned by Nokia, after the Nokia ALU merger. The Portfolio is predominantly made up of ALU assets, comprising 82% of assets offered.

The Nokia Technologies patents in this portfolio originated with the Nokia Devices and Services business. Nokia divested the associated business to Microsoft in 2014. 15% of the assets originate from Nokia Technology.

Nokia Networks originated in 2007 through a combination of Nokia’s networks business and Siemens’ carrier-related operations for fixed and mobile networks. Nokia Networks is fully owned by Nokia after the purchase of Siemens’ share in 2013. Nokia Networks contributed 3% of the assets in the Portfolio.

The three portfolios have differing encumbrance issues, detailed in an encumbrance schedule available under NDA. The encumbrance schedule includes an extensive white list and certain other restrictions on the use of the Portfolio.

The Portfolio includes patent families from six technology clusters; Wireless, Services, IP and Networks, Access Fixed and Optical Networks, Hardware and Components and User Experience, Mechanics and Materials. More information on each of the technology clusters is available from the links below.

The Portfolio is available for cash purchase, in whole or in part, on a first-come basis. Offers will be considered for large or small lots, although individual families will not be broken. Please contact AQUA for more information.

One measure of value of a portfolio is the number of forward citations. The Telecommunications Portfolio includes significant numbers of forward citations. The following is a chart representing the total number of forward citations for the Telecommunications Portfolio by company, showing major companies citing the patents of the overall portfolio more than 100 times each.

This document is for marketing purposes only to facilitate discussions and sale of all or part of the portfolio. The information contained herein is provided with no representations or warranties of any kind. No information contained herein constitutes any threat or assertion against any third party and any © 2017 AQUA Licensing, LLC | [email protected] opinions, including any underlying reasoning, provided herein are solely those of AQUA Licensing LLC. The Telecommunications Portfolio Offering

Parties with More Than 100 Forward Citations

The number of overall citations by major players in the technology field demonstrate the value of the overall Telecommunications Portfolio, and represents a strong indication that the technology disclosed and claimed is highly relevant to developments in the respective technology fields. We particularly note the forward citations relevant to each cluster in the discussion below.

Assets By Technology Cluster

IP Networks - 16.7% Wireless - 26.3%

Services - 23.9% Access Fixed and Optical Networks - 11.1%

User Experience, Machanics and Materials - 7.7% Hardware and Componants - 14.3%

Assets By Geography Assets By Originating Portfolio

Technologies Networks ALU 15% 82% 3%

Introduction 2

Access, Fixed and Optical Networks Technology Cluster

Includes 517 patent families, with 942 assets Earliest filing: 1998-01-12 Average lifespan: 6.0 years Covers optical networks and transport, SONET/SDH (transfer over optical fiber), passive optical networks (PONs), and microwave transmission Also addresses home and access networks, including modems, terminals, PBX, and POTS transmissions

he Access, Fixed and Optical Networks Technology cluster includes 942 patents T with claims covering areas including virtual reality, data processing, resolving issues between dissimilar databases, video coding, display techniques, and addressing broad areas of telecommunications systems and wireless networks. This cluster includes assets with a lifespan to 2035.

One measure of cluster quality is the number of forward citations to the assets offered. The following chart illustrates the number of forward citations for this portfolio, and include lines representing citations in the USPTO by others and in litigation by others. The averages for litigation and USPTO citation are shown by lines sloping slightly upward from the lower left corner, and for the time period after 10 years from publication, the number of forward citations increases dramatically. Again, this serves to confirm the value of the patents in this cluster.

Access, Fixed and Optical Networks Technology Cluster 3

The following charts illustrate relative quality score, claim quality score, lifespan, and classification breakdown of this cluster. Of note is the relative number of “very good” assets based on overall quality score, a measure of claim word length, forward citations, lifespan and relative class valuation. As may be seen from the following representations, a high number of assets with “Excellent” or “Very Good” claim quality scores are offered in this cluster.

Patents Overall Quality Score - Access, Fixed and Optical Networks

Note the average-to-above average scoring for applications filed on or after 2013.

Claim Quality Score - Access, Fixed and Optical Networks

Access, Fixed and Optical Networks Technology Cluster 4

Expiration Dates - Access, Fixed and Optical Networks

Circle Visualization - FoamFree Visualization - Access, Fixed and Optical Networks Access, Fixed and Optical Networks

“Patents Cited by” Scoring - Access, Fixed and Optical Networks

Access, Fixed and Optical Networks Technology Cluster 5

Hardware and Components Technology Cluster

Includes 581 patent families, including 901 assets Earliest filing: 1998-01-12 Average lifespan: 5.3 years Covers electronics circuitries, physical components, hardware architectures, and power management, camera and other hardware components, and optical fibers and optical components

he Hardware and Components cluster includes patents and applications having T claims directed to optical fibers, optical amplifiers, integrated circuits, tunable optical devices, printed circuits, optical waveguides, and semiconductor optical devices.

With respect to forward citations, the forward citations for the Hardware and Components cluster is shown in the following chart:

Note the scaling on this Hardware and Component chart is heavily skewed due to one asset having approximately 700 forward citations. However, as with the other clusters, the litigation and general USPTO forward citations for average assets are far below the assets of this Hardware and Component cluster, particularly for assets published more than 10 years ago.

Hardware and Components Technology Cluster 6

Patents Overall Quality Score - Hardware and Components

Claim Quality Score - Hardware and Components

Expiration Dates - Hardware and Components

Hardware and Components Technology Cluster 7

Circle Visualization - FoamFree Visualization - Hardware and Components Hardware and Components

“Patents Cited by” Scoring - Hardware and Components

Hardware and Components Technology Cluster 8

IP and Networks Technology Cluster

Includes 741 patent families, comprising 1352 issued assets Earliest filing: 1998-01-02 Average lifespan: 6.8 years Covers IP and protocols including Multiprotocol Label Switching (MPLS), IP Multimedia Subsystem (IMS), Session Initiation Protocol (SIP), Voice over IP (VoIP), and other network protocols Addresses traffic management, including load, flow and traffic control, scheduling, timing and synchronization Also addresses network and service management, provisioning, monitoring and testing Covers core networks, metro Ethernet, software defined networking (SDN), and asynchronous transfer mode (ATM)

laims for assets in the IP and Networks cluster cover a wide variety of technology areas, including network C manangement, communications networks in general, data packet processing and transmission, internet protocols, and various areas of traffic flow management, including load balancing and congestion control.

Forward citations for the IP and Networks cluster are shown below.

Again, the litigation and general USPTO forward citation reference lines are low relative to the citation of IP and Networks cluster assets more from approximately 8 years since publication and earlier. Such high numbers of older citations demonstrate the fundamental and reference nature of the assets in this cluster.

IP and Networks Technology Cluster 9

Patents Overall Quality Score - IP and Networks

Again, note the average to above average cluster for patents/applications filed after about 2014.

Claim Quality Score - IP and Networks

IP and Networks Technology Cluster 10

Expiration Dates - IP and Networks

Circle Visualization - FoamFree Visualization - IP and Networks IP and Networks

“Patents Cited by” Scoring - IP and Networks

IP and Networks Technology Cluster 11

Services Technology Cluster

Includes 1064 patent families, comprising 1952 assets Earliest filing: 1998-01-05 Average lifespan: 6.2 years Covers areas including multimedia, content search, delivery and sharing, entertainment and gaming, streaming, internet protocol television (IPTV), and broadcast transmission Also includes messaging in general, including email/web mail, SMS/MMM messaging, cloud messaging, social networking, chat, and instant messaging Also covers maps and navigation, as well as location and context based services This group covers cloud services and analytics, web services and browsing, security services, and e-commerce

he broad Services cluster includes assets having claims covering virtual reality, telecommunications systems, T data transmission, web pages, data transfer, variable length encoding, wireless networking, bit rate issues and processing techniques, display techniques, video coding, and areas such as providing test harnesses, virtual chassis, and load balancing.

Looking at forward citations, the Services cluster includes one outlier asset having over 400 forward citations, and a grouping of numerous assets with over 100 citations. Such forward citations indicate a strong cluster having significant relevant value with respect to other patents issuing at the same time.

Patents Overall Quality Score - Services

Services Technology Cluster 12

Claim Quality Score - Services

Expiration Dates - Services

Note the relatively large number of patents expiring beyond 2020.

Services Technology Cluster 13

Circle Visualization - FoamFree Visualization - Services Services

“Patents Cited by” Scoring - Services

Services Technology Cluster 14

User Experience, Mechanics and Materials Technology Cluster

This group includes 326 patent families, comprising 499 assets Earliest filing: 1998-01-16 Average lifespan: 4.8 years This group includes assets covering device user interfaces, user experience, and speech recognition Assets further include claims directed to mechanical construction of handsets, such as covers, form factor, input devices Also included are assets in the areas of housings for base station equipment, cooling arrangements, etc. Certain assets are directed to mechanical devices, nanotechnologies, materials, microelectromechanical systems (MEMS), sensors and sensing, and digital health

he User Experience, Mechanics, and Materials cluster touches on many diverse concepts including speech T recognition, circuit boards and heat sinks, electroplating, electrical assembly, MEMS devices, electromagnetic shielding, bidirectional elements, silicate materials, and optical fiber.

The forward citation chart for the User Experience, Mechanics, and Materials cluster is presented below.

In addition to a few outliers, including one asset approximately 11 years since publication with over 100 forward citations, the User Experience, Mechanics, and Materials cluster shows a strong history of citation by references of major technology providers. Such heavy citation demonstrates the inherent value of this cluster.

User Experience, Mechanics and Materials Technology Cluster 15

Patents Overall Quality Score - User Experience, Mechanics and Materials

Claim Quality Score - User Experience, Mechanics and Materials

User Experience, Mechanics and Materials Technology Cluster 16

Expiration Dates - User Experience, Mechanics and Materials

Circle Visualization - FoamFree Visualization - User Experience, Mechanics and Materials User Experience, Mechanics and Materials

“Patents Cited by” Scoring - User Experience, Mechanics and Materials

User Experience, Mechanics and Materials Technology Cluster 17

Wireless Technology Cluster

Includes 1301 patent families, having 2715 assets Earliest filing: 1998-01-07 Average lifespan: 6.9 years Claims covering radio access networks, mobile core, radio frequency operation and functionality, antenna, and operations support systems/business support systems (OSS/BSS) Broad general coverage of 2G, 3G, and 4G, with certain coverage relevant to 5G and short range radio Includes resource reservation, self organizing networks, signaling, emergency calling, service management, billing, and business support systems

laims of the broad based Wireless cluster assets include all aspects of wireless C communication, including base station, user equipment, telecommunications signal processing, transmission and receipt of wireless data, access channel functionality, power control, resource allocation, load balancing, packet switching, RF functionality, use of Walsh codes, and so forth.

Forward citation of the broad Wireless cluster is significant, as shown below.

Numerous Wireless cluster assets have more than 100 forward citations, and assets in the Wireless cluster published more than approximately 10 years ago are significantly above citation to average patents.

Wireless Technology Cluster 18

Patents Overall Quality Score Chart - Wireless

Claim Quality Score - Wireless

Wireless Technology Cluster 19

Expiration Dates - Wireless

Circle Visualization - FoamFree Visualization - Wireless Wireless

“Patents Cited by” Scoring - Wireless

Wireless Technology Cluster 20