Intellectual property monetization involves generating revenue from intellectual property through activities like patent licensing and enforcement. There is a large global market for intellectual property rights and licensing estimated at over $50 billion. Ireland aims to become a leader in intellectual property by offering tax incentives for companies to locate intellectual property management and exploitation in Ireland, potentially creating high-quality jobs. However, indigenous Irish firms currently have unsophisticated use of intellectual property, while foreign companies generally handle intellectual property through headquarters with little Irish visibility. Attracting intellectual property activities and transferring knowledge to both foreign and domestic companies could help Ireland maximize opportunities in this area.

1. Intellectual Property Monetization How to make Ireland number 1? Fred Logue

3. + =

4. Source: IDA Horizon 2020

5. Obsessive Focus on FDI Source: Barry (2007)

6. Source: Barry (2004)

7. Source: Barry (2004)

9. 1986-1992 Deregulation of European Air Travel Markets

10. 2005 Changes to US Tax Law

12. 1987 Financial Globalisation

13. 1987 Financial Globalisation

17. Intellectual Property is the legal right to control the results of creativity and innovation

18. There’s a $50 billion-plus market in IP rights and licensing IzharArmony, Charles Rivers Ventures >

21. Patent Holder Tech Develop Co Private Invest Fund Litigation Fund Pat Licensing Co Regional Devel Fund Securitization Firm Defensive Pool Private Co Public Co Patent Holdings (# of patents) Very Small (≈ 100) Very Large (10k +) Patent Monetization Landscape – Key Players Offensive Patent Strategy Acacia PLC Round Rock Mobile Pat. Trust Rembrandt Arca Lemmelson Altitude Acacia IP Fund Tessera Sisvel IPcom WiLAN Katz InterDigital Juridica Walker Digital Alset IP GPC Techquity MMI Intellectual Ventures Via Turtle Bay Rambus Mosaid Intertrust Ignite IP Papst Alpha Patent Funds Coller Capital Paradox Capital Using Self-Generated Patents/Rights Acquiring Patents/rights IP Gest Credit Suisse Paul Capital Deutsche Bank RPX OIN AST Defensive Patent Strategy Source: Coller Capital; Brody Berman, PatentFreedom Notes: 1 – Does not include operating companies or life science holders. 2 – This graph is for illustration purposes and is not drawn to scale. 21

22. Source: Acacia

24. Source: Acacia

25. Our approach enables our client network to manage patent litigation risks and costs through collective defensive patent initiatives, superior patent intelligence, and special advisory services.

26. Acacia Research’s subsidiaries partner with inventors and patent owners, license the patents to corporate users, and share the revenue. Acacia controls over 160 patent portfolios covering technologies used in a wide variety of industries

27. As the global leader in the business of invention and owner of one of the world’s largest and fastest-growing patent portfolios, we are creating an active market for invention that connects buyers, sellers, and inventors.

28. Europe is Scratching its Head about IP

29. But…

30. Indigenous Irish firms are extremely unsophisticated in their use of Intellectual Property

31. For managers in FDI companies IP is (generally) something done in head office with little or no visibility here

32. 2009 US Patents vs Market Cap

34. Monetization Collaboration Isolation Denial Source: OECD

38. S 291A Taxes Consolidation Act 1997 Commitment included in the Government's Economic Recovery Plan "Building Ireland's Smart Economy" Encouraging companies to locate the management and exploitation of their intellectual property in Ireland With the potential to create high-quality employment in the process. IP Exploitation Incentivised Revenue Tax Briefing (July 2010)

39. Allowance of 80%of capital expenditure on specified intangible assets against income arising from activities consisting of managing, developing or exploiting specified intangible assets Definition of Specified Intangible asset includes most forms of Intellectual Property

40. Therefore 2.5% effective corporation tax rate possible on IP income

41. Established a Dublin-based European headquarters to better serve European customers, expand its intellectual property network and grow licensing business worldwide

42. Established in Ireland as a springboard for expansion into Europe Purchase of 400 patent assets from BT by German Patent fund

43. Transferred management of DTS’s global client licensing program to Ireland enhancing its ability to serve global customers

45. How do we attract IP activities andmake sure know-how is transferredto both indigenous and foreign companies?

48. Services innovation will represent a significant area of growth, as different sectors converge and new solutions are developed management. This ‘servicisation’ of companies offering new solutions will be an increasing source of new employment to 2014 and beyond.

49. fred.logue@newmorningip.com (01) 254 2340 l www.newmorningip.com l @newmorningip