Copy Number: _
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`("‘
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`SIGHTSOUND TECHNOLOGIES
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`CONFIDENTIAL OFFERING MEMORANDUM
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`ALLEN 6;’ COMPANY m:
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`Apple Exhibit 4360
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`Apple v. SightSound Technologies
`CBM2013-00023
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`CONFIDENTIAL
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`Apple v. SightSound Technologies
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`TABLE OF CONTENTS
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`Copy Number: _
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`EXECUTIVE SUMMARY ............................................................................................................. .. 1
`Overview .......................................................................................................................................................... ..1
`
`Acquisition Considerations ................................................................................................................................ ..l
`Ownership .......................................................................................................................................................... ..2
`Acquisition Option .............................................................................................................................................
`Patents ................................................................................................................................................................ ..3
`
`Litigation Settlement ......................................................................................................................................... ..3
`Management ...................................................................................................................................................... ..4
`
`COMPANY HISTORY ................................................................................................................... ..5
`
`Background ........................................................................................................................................................ ..5
`Timeline ............................................................................................................................................................. ..5
`
`III.
`
`SUMMARY OF INTELLECTUAL PROPERTY ASSETS ........................................................ .. 9
`Audio/Video EC/ommeree ................................................................................................................................ .. I0
`
`Audio/Video Compression .............................................................................................................................. .. 10
`Applied Encryption .......................................................................................................................................... ..l 1
`
`IV.
`
`SUMMARY OF THE PATENT INFRINGEMENT SUIT ........................................................ .. 12
`Patents at Issue ................................................................................................................................................. .. l 2
`
`Complaint Filed ............................................................................................................................................... .. 12
`Discovery Phase .............................................................................................................................................. .. I 2
`Markman Report and Recommendation .......................................................................................................... .. l 3
`Burden of Proofon the Defendants ................................................................................................................. .. 13
`
`Summary Judgment ......................................................................................................................................... .. I4
`Settlement ........................................................................................................................................................ .. l4
`
`MARKET OPPORTUNITY ......................................................................................................... ..15
`
`Disadvantages to Content Owners ofthe Current Physical Distribution System ............................................ ., 15
`Disadvantages to Consumers ofthe Current Physical Distribution System .................................................... .. 15
`Online Music Landscape ................................................................................................................................. ..16
`Video-on-Demand Landscape ......................................................................................................................... .4 17
`
`VI.
`
`SUMMARY OF LIABILITIES AND CASH BALANCE .......................................................... .. 18
`
`VII.
`
`MANAGEMENT ........................................................................................................................... .. 19
`Executive Officers and Directors ..................................................................................................................... .. 19
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`SightSound Technologies, Inc.
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`CONFIDENTIAL
`
`This Confidential Offering Memorandum (“Memorandum”) is based on information provided by Sightsound
`Technologies. Inc.
`(the “Company” or “SightSound'”’).
`It is being delivered on behalf of SightSound by Allen &
`Company LLC (“Allen“ or “Allen & Company“), subject to prior execution of a Confidentiality Agreement (as
`defined below), to a limited number of parties who may be interested in acquiring SightSound as described herein.
`This Memorandum does not purport to include all necessary information that a prospective purchaser may desire in
`fully evaluating the Company.
`
`This Memorandum is subject to the terms of the Confidentiality Agreement between you and SightSound, entered
`into in connection with this potential sales process (the "Confidentiality Agreement"). The recipient should become
`familiar with this and the other obligations to which the recipient
`is subject pursuant to the Confidentiality
`Agreement. This Memorandum may not be photocopied, reproduced or distributed to others at any time without the
`prior wi'itten consent of SightSound or Allen & Company. Upon request, the recipient will promptly return all
`material received from Sightsound or Allen (including this Memorandum) without retaining any copies thereof.
`
`This Memorandum has been prepared for informational purposes only and upon the express understanding that it
`will be used only for the purposes set forth above. None of Sightsound, Allen & Company nor their related parties
`makes any express or implied representation or warranty as to the accuracy or completeness of the information
`contained herein or made available in connection with any further investigation of the Company. Each of
`SightSound and Allen & Company expressly disclaims any and all liability that may be based on such information,
`errors therein or omissions therefrom.
`
`The projections included in this Memorandum are based upon a number of estimates and assumptions which,
`although considered reasonable by management, are inherently subject
`to significant business, economic and
`competitive uncertainties, contingencies and risks, all of which are difficult to predict and many of which are beyond
`SightSound’s and Allen & Company’s control. Accordingly, there can be no assurance that the projected results will
`be realized or that actual results will not be significantly higher or lower than those projected and no express or
`implied representation or warranty is made as to the accuracy ofthe projections or the estimates and assumptions on
`which the projections are based. The recipient shall he entitled to rely solely on the representations and warranties
`made to it by Sightsound in any final agreement.
`
`In furnishing this Memorandum, SightSound and Allen & Company undertake no obligation to provide the recipient
`with access to any additional
`information. This Memorandum shall not be deemed an indication of the state of
`affairs ofthe Company nor shall it constitute an indication that there has been no change in the affairs of Company
`since the date hereof. This Memorandum does not purport to contain all of the information that may be required to
`evaluate a potential transaction involving the Company and any recipient hereof should conduct its own independent
`analysis of the Company and the data contained or referred to herein. SightSound expressly reserves the right,
`without giving reasons thereof. at any time and in any respect to terminate discussions with any or all prospective
`purchasers.
`to negotiate with any party with respect to a transaction involving the Company or to change any
`procedures established by Sightsouncl or Allen & Company without prior notice.
`
`All communications, inquiries and requests for information relating to these materials should be addressed to Allen
`& Company. Under no circumstances should the management or employees of Sightsound be contacted
`directly.
`
`/JLLEN <59’ COMPANY LLC
`71 1 Fifth Avenue
`
`New York, NY l0()22
`(2l2) 832-8000
`
`Stanley S. Shuman
`Managing Director
`(212) 339-2630
`(212) 339-2279
`(212) 339-23ll
`
`
`Kenneth M. Siskind
`Vice President
`
`Jessica C. Schcll
`Associate
`
`Proprietary & Confidential
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`SightSound Technologies, Inc.
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`1.
`
`EXECUTIVE SUMMARY
`
`Overview
`
`SightSound Technologies, Inc. (“SightSound” or the “Company”) pioneered and patented digital
`delivery solutions for the commercial distribution of digital audio and video recordings/files
`(including but not limited to movies and music), over telecommunications lilies, including the
`Internet, satellite, wireless, and digital cable systems. Recent
`litigation tested three of the
`Company's patents covering download and streaming delivery and both pay—per-use and
`subscription models. The suit in U.S. District Court for the Western District of Pennsylvania,
`initiated by Sightsound in I998, concluded in February 2004 when the company reached a
`favorable settlement in which Bertelsmann subsidiaries CDnow and NZK acknowledged that the
`three Sightsound patents in question were valid and enforceable. The settlement was reached
`after SightSound had received two highly favorable decisions: a l\/larkman decision, which
`supported the Company’s position regarding the construction of the patent claims in every
`material respect, and a decision on Summary Judgment, which granted SightSound’s motion for
`summary judgment with regard to the defendants’ affirmative defenses and counterclaims of
`unenforceability, and rejected the defendants’ summary judgment motion attacking the validity
`of SightSound’s patents. Following the successful settlement, the Company has retained Allen &
`Company to advise the Company on strategic alternatives,
`including a potential sale of the
`Company.
`
`SightSound is a Delaware corporation with its principal executive offices located at 733
`Washington Road, Suite 400, Mt. Lebanon, PA 15228. The Company’s website can be found at
`http2//www.sightsound.com. The information contained at the Company website is not, and shall
`not be deemed to be, a part of this Confidential Offering Memorandum.
`
`Acquisition Considerations
`
`Large and Growing Market. The SightSound patents cover a vast emerging market of digital
`content distribution which includes, but is not limited to, online music purchases and Video—on—
`Demand (“VOD”) provided through telecommunications lines, whether via Internet, satellite,
`wireless, or digital cable systems.‘ The aggregate revenue potential of these markets is estimated
`to be $1.2 billion in 2004, and is projected to grow to $8.7 billion in 2008.3 In the last year,
`improvements in user interface, expansion of offerings and increased marketing by major media
`and communications companies are rapidly increasing revenues in the music e-commerce
`market. VOD is growing in reach and popularity as the electronic delivery of movies continues
`to replace the physical home video market. A robust VOD market has begun to emerge; at the
`end of 2003,
`there were approximately 44 million VOD homes passed, 5.4 million VOD
`subscribers, and 24 million households with high—speed Internet eonnections.3
`
`The description in this section is for informational purposes only and is not intended to limit or otherwise alTect the scope of
`claims in any one or more of the patents mentioned herein. The full scope ofthe inventions described in these patents is
`defined by the claims and their equivalents. Nothing herein shall be used for claims construction, infringement determination
`or for any another purpose, except to apprise the reader of the general nature of the patents described.
`Source: Forrester Research X/2003. Includes online downloads and subscription services and cable, internet and other VOD.
`Source: \/(ID Homes Passed, Kagan Cable TV Investor 12/22/2003, VOD Subscribers and high speed internet households,
`Veronis Suhler Stevenson Communications Industry Forecast.
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`SightSound Technologies, Inc.
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`SightSound’s patent portfolio offers a substantial competitive advantage Within the VOD
`and digital music marketplace and a huge licensing opportunity. Due to its patents,
`SightSound has a government issued monopoly position through 2016 covering paid digital
`delivery of audio and video files (2016 is when the last of the SightSound core eCommeree
`patents will expire — SightSound has additional patents and applications which extend beyond
`2016). Following the successful litigation and recent settlement in which SightSound was paid
`$3.3 million by CDnow and NZK, any purchaser of SightSound will be able to exploit a myriad
`of licensing opportunities from these patents.
`
`Industry pioneering management team knowledge base available to purchaser. From both a
`technological and business perspective, SightSound’s team has led the development of electronic
`distribution and the related fields of applied encryption, compression and trusted peer—to-peer
`networks. Arthur R. Hair, Chairman and CTO, invented the patented eCommeree technology in
`1986. He filed for patent protection in 1988 and received his first patent in 1,993. Mr. Hair
`received related continuation patents in 1997 and 1999, as well as two additional patents on
`related technology. SightSound was the first company to legally and commercially sell and
`distribute music and feature films on an electronic basis. Scott C. Sander, CEO, negotiated the
`world’s first Internet music distribution agreement and Internet motion picture distribution
`agreement, as well as the first Internet studio motion picture distribution agreement. Mr. Sander
`has testified before the US. Patent and Trademark Office; U.S. Department of Commerce; U.S.
`Federal Trade Commission; and the US. Department of Justice as well as participated on various
`industry panels, advocating the value of intellectual property and the future of digital
`distribution. Mr. Sander has also advised members of the House and Senate Judiciary
`Committees on issues related to patent rights and eCommerce. SightSound’s management has
`been intimately involved in the patent
`litigation. Christopher J. Reese, EVP and General
`Counsel, navigated the successful
`legal proceedings that bolstered the eompany’s intellectual
`property claims. Members of the Sightsound team are available to be retained by the purchaser
`on a mutually agreeable basis.
`
`Ownership
`
`Sightsound is a privately held company with 97.3 million fully diluted common shares and no
`preferred shares outstanding. There are approximately 125 shareholders. Significant shareholders
`include:
`
`Shareholder
`
`Shares Held4
`
`% Total
`
`BMW Technology, Inc.
`lntertainment AG
`WatcrView Partners
`A.R. Hair, L1’.
`Scott Sander & Trust
`Alexander LcPore
`
`Christopher Reese
`Robert Arnoni & Trust
`
`BMW Properties
`Matt Smith
`
`Jay Lustig
`Miramax Film Corp.
`
`23.1
`11.2
`9.9
`8.9
`5.7
`5.6
`
`4.2
`2.1
`
`2.0
`1.9
`
`1.7
`1 5
`
`23.7%
`1 1.6%
`10.2%
`9.1%
`5.9%
`5.7%
`
`4.3%
`2.2%
`
`20%
`2.0%
`
`1.7%
`1.5%
`
`4 Fully diluted shares, includes options and warrants.
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`SightSound Technologies, Inc.
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`Acquisition Option
`
`In addition to its shareholdings in the Company, BMW Technology, Inc. ("BMW Technology")
`is the holder of an option to purchase the outstanding shares of SightSound that BMW
`Technology does not already own. BMW Technology acquired the option as part of its
`investment
`in SightSound, which was effective as of December 18, 2002. Both BMW
`Technology and the Company are willing sellers at the right price. The Company anticipates that
`there will be a cashless exercise of the option simultaneously with the completion of a
`transaction.
`
`Patents
`
`SightSound patented, and is in the process of patenting, various methods and systems covering
`numerous aspects of audio and video eCommerce and related fields.
`
`0 United States Patent nos. 5,191,573, 5,675,734, and 5,966,440, which are directed to the
`
`electronic sale of digital audio and digital video recordings via telecommunications lines,
`such as the Internet, satellite, wireless and digital cable systems. There is an additional
`continuation application pending before the United States Patent and Trademark Office
`
`0 United States Patent 6,014,491, which discloses (1) a method and system to compress,
`and/or convert, audio and video signals, or files, into a static file format, and (2) a method
`and system to playback, and/or replicate, static audio and video files using a static audio
`and video player. Additional patents covering audio—video compression are New Zealand
`Patent 337344, Singapore Patent 67158, Australia Patent 752057 and China Patent
`1252917. SightSound expects
`there will be additional
`issuances of audio/video
`compression patents based on other United States and/or foreign filings covering this
`invention
`
`0 United States Patent 6,615,349, which discloses a method and system to automatically
`invoke functionality of an operating system during the encrypted transmission and
`encrypted storage of computer files and/or computer programs from one computing
`device to another computing device. Additional patents covering Applied Encryption
`include New Zealand Patent 502871 and Singapore Patent 93860. SightSound expects
`there will be additional issuances of applied encryption patents based on other United
`States and/or foreign filings covering this invention
`
`Litigation Settlement
`
`After initiating litigation in 1998, SightSound waged its patent infringement suit against CDnow
`and NZK until February 2004. The defendants asserted that
`they did not
`infringe on
`SightSound’s patents and that the patents should be ruled invalid. After receiving Markrnan and
`Summary Judgment rulings favorable to SightSound, the parties entered settlement discussions
`and agreement was reached in February 2004. In the settlement, CDnow and N2K acknowledged
`that United States Patents 5,191,573; 5,675,734; and 5,966,440 are valid and enforceable, and
`paid Sightsound $3.3 million.
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`A Final Order and Judgment on Consent in accordance with the settlement was entered by Chief
`Judge Donetta W. Ambrose of the United States District Court for the Western District of
`Pennsylvania on February 20, 2004.
`
`Management
`
`Name
`
`Age
`
`Position
`
`Arthur R. Hair
`Scott C. Sander
`
`Christopher J. Reese
`Alexander LePore
`Robert Baxter
`
`Frank J. Biondi, Jr.
`Ariel Emanuel
`
`Charles R. Zappala
`Jay H. Lustig
`
`43
`43
`
`40
`45
`40
`
`59
`42
`
`54
`48
`
`Chief Technology Officer, Chairman ofthe Board
`President, Chief Executive Officer, Director
`
`Executive Vice President, General Counsel, Director
`Chief Financial Officer, Director
`Director
`
`Director
`Director
`
`Director
`Director
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`SightSound Technologies, Inc.
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`II.
`
`COMPANY HISTORY
`
`Background
`
`SightSound’s history began in 1986, when Chairman and CTO Arthur Hair first determined to
`design a system that would make the physical distribution of filmed and music entertainment
`obsolete. Since then, SightSound has built upon Mr. Hair’s pioneering vision by continuing to
`develop, and be the first to market with, a number of revolutionary technologies and services. In
`1995, SightSound became the first company in history to offer music for sale and download
`electronically over the World Wide Web. On April 13,
`l999, Sightsound became the first
`company to offer a full—length major motion picture for sale electronically.
`
`SightSound was also the first company to deploy a scalable electronic commerce platform for the
`electronic sale and download of both video and audio recordings. The Secure Media eCommerce
`System (“SMeCS”), developed by Sightsound, was a highly scalable, electronic system for the
`commercial, digital distribution of movies and music on a global basis with territorial restriction
`capabilities. SMeCS permitted the rental of films over the lnternet by offering the customer the
`opportunity to View a film a predetermined number of times during a specified period oftime. At
`that time,
`the SmeCS had the hardware capacity to sell over 350,000 movies per day. The
`Company entered into licensing agreements with independent filmmakers, content producers and
`recording artists including Miramax, Comedy Central, Showtime Networks, Franchise Pictures
`and Artisan Entertainment. The download business was put on hold in 2003 so that the Company
`could focus
`its
`resources on building and defending its
`intellectual property portfolio.
`SightSound maintains the know-how for the design and operation of the SMeCS.
`
`Timeline
`
`1986 —— After leaving the Defense Electronics Division of Texas Instruments, Arthur Hair, CTO
`of SightSound, begins to develop a method to eliminate physical distribution of movies and
`music.
`
`June 13, 1988 — Mr. Hair files for the first of the eCommerce patents of the SightSound
`portfolio.
`
`March 2, 1993 — Mr. Hair receives his first patent, U.S. Patent 5,191,573, titled: “Method for
`Transmitting a Desired Digital Video or Audio Signal.” This patent was subsequently assigned to
`Sightsound.
`
`November 22, 1993 -- PolyGrarn, in conjunction with Philips Media, pays Mr. Hair and Mr.
`Sander $55,000 for a f1ve—week exclusive right to negotiate a purchase of US. Patent No.
`5,191,573, but the deal
`is never consummated because of a fear that such a purchase would
`alienate brick and mortar retailers.
`
`August 1, 1995 — Because the record companies are slow to take advantage of the fact that music
`could be sold online, Messrs Hair and Sander decide to start without them. Digital Sight/Sound,
`lnc., and Parsec Sight/Sound,
`lnc., are founded (the companies eventually are combined and
`ultimately became SightSound Technologies, Inc).
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`August 18, 1995 — SightSound inks the first distribution deal with a recording artist
`electronically sell music via the Internet.
`
`to
`
`Fall 1995 — The first complete album and singles are offered for sale via the Internet by
`SightSound from The Gathering Field, a Pittsburgh band subsequently signed by Atlantic
`Records.
`
`Winter 1995 — Realizing they are upsetting the record labels with their competing virtual record
`store, SightSound goes offline and begins to work behind the scenes with the major record
`labels.
`
`October 7, 1997 — SightSound receives its second patent, U.S. Patent 5,675,734, titled: “System
`for Transmitting Desired Digital Video or Audio Signals.”
`
`April 1998 - Sightsound goes back online, to-launching
`
`August 1998 — Virtual Tour ‘98i'lM, an Internet Microshoww, is launched with a premiere at
`Veruka in New York City. This was the first of five Microshowssm created by SightSound and
`the re-launch ofits online music sales.
`
`April 13, 1999 — Sightsound electronically sells the first movie via the Internet in a deal with
`Artisan Entertainment. Darren Aronofsky's Pi is available online in a streaming pay-per-view
`model. Microsoft also has reason to celebrate; SightSound decides to utilize the new Windows
`Media Player technology for the first
`time. The launch of Pi’ via the Internet debuted at
`Microsoft’s Audisee ‘99 at the House of Blues in Los Angeles.
`
`August 24, I999 — An announcement is made that l\/lctafilmics, the producers of the major
`motion picture What Dreams May Come, will produce Quantum Project, the first film created
`exclusively for commercial global Internet distribution. The film debuted with Sightsound in
`Spring, 2000.
`
`September 14, 1999 — SightSound re—launehes with a scalable website, the first movie site with
`full—length films for commercial download.
`
`October 5, 1999 — SightSound announces the addition of former Universal Studios Chairman
`Frank J. Biondi, Jr. to its Board of Directors.
`
`October 12, 1999 — SightSound receives its third patent, U.S. Patent 5,966,440, titled: “System
`and Method for Transmitting Desired Digital Video or Digital Audio Signals.” SightSound is
`featured in Entertainment Weekly and on National Public Radio.
`
`it
`October 23, 1999 — Immediately after the Tyson v. Norris fight aired live on Showtime,
`became available for download rental by SightSound. This is the first time viewers can rent
`specialty programs or events via the Internet.
`
`January 11, 2000 — SightSound receives its fourth patent, U.S. Patent 6,014,491, titled: “Method
`and Systein for Manipulation of/ludio or Video Signals.” SightSound announces a $20 million
`investment by the German entertainment distribution company Intertainment A.G.
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`March 6, 2000 — Franchise Pictures and producer Elie Samaha announce that they will release
`movies on the Internet for download through SightSound in a five-year, exclusive worldwide
`Internet distribution deal.
`
`April 18, 2000 — SightSound announces an agreement with Miramax Films to distribute twelve
`ofits films for Internet download.
`
`May 5, 2000 — Metafilmies and SightSound present Quantum Project, the first Internet feature
`film. The movie was available to a worldwide audience at l2:0l A.M. EDT.
`
`September 25, 2000 — Six episodes of the television shows South Park and six episodes of
`Doctor Katz: Professional Therapist are released via the Internet for download as part of an
`agreement between Comedy Central and Si ghtSound.
`
`June 14, 2000 — SightSound begins distributing encrypted movie files through Gnutella, proving
`the capability of the SMeCS to securely hypcr—distribute movies through 1‘ile—sharing networks.
`
`November 6, 2000 — SightSound deploys a secure solution for the Napster file—sharing program,
`releasing an encrypted copy of the Quantum Project soundtrack into Napster using subscription-
`based accounts.
`
`an expansion of
`is unveiled as
`Inc.
`November 30, 2000 — SightSound Technologies,
`SightSound.com, to increase the services the Company offers to the motion picture and music
`industries.
`
`January 22, 2001 — During the Sundanee Film Festival, Guinevere is released by Miramax
`Films through the Secure Media eCommerce System developed by SightSound.
`
`March 19, 2001 — SightSound, Microsoft and Panasonic debut a digital cinema trial leveraging
`the Internet for the delivery and electronic commerce of a commercially delivered and digitally
`projected movie, Quantum Project.
`
`December 10, 2001 — SightSound sold the first EVDW (Electronic Versatile Dovvnloadm), a
`downloadable package that
`includes a specially encoded, high-resolution copy of Miramax
`Films’ Hamlet, plus additional DVD-like features.
`
`February 14, 2002 — SightSound receives favorable Markman decision for Arthur Hair’s
`invention. The decision sustained SightSound’s positions in all key respects.
`
`March 12, 2002 — SightSound receives its fifth patent, New Zealand Patent No. 502871, titled:
`“A System and Methodfor Manipulating a Computer File and/or Program.”
`
`May 31, 2002 — SightSound receives its sixth patent, Singapore Patent No. 67158, titled: “A
`Method and System for Manipulatioii of A udio or Video Signals.”
`
`September 9, 2002 — SightSound receives its seventh patent, New Zealand Patent No. 337344,
`titled: “Method and System for Manipulation of/l udio or Visual Signals.”
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`December 19, 2002 — SightSound receives its eigth patent, Australia Patent No. 752057, titled:
`“A Method and System‘/or Manipulation ofA udio or Video Signals.”
`
`September 2, 2003 — SightSound receives its ninth patent, U. S. Patent No. 6,615,349, titled: “A
`System and Metlzoalfor Manipulating a Computer File and/or Program.”
`
`September 10, 2003 — Sightsound receives its tenth patent, China Patent No. 1252917, titled:
`“Method and System for Manipulation of/l udio or Video Signals.
`
`October 23, 2003 — SightSound receives a favorable ruling from the Federal Court in its patent
`infringement
`litigation. The ruling grants SightSound's motion for
`summary judgment,
`dismissing one of the Defendants‘ counterclaims. The decision also rejects the Defendants’
`summary judgment motion attacking the validity of Si ghtsound patents.
`
`February 20, 2004 — SightSound successfully settles its patent infringement litigation against
`CDnow and NZK.
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`SightSound Technologies, Inc.
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`III.
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`SUMMARY OF INTELLECTUAL PROPERTY ASSETS5
`
`SightSound is currently the owner by assignment of eleven patents in three primary areas:
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`Audio/Video eCommcrce:
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`U.S. Patent No. 5,191,573, “Method For Transmitting A Desired Digital Video Or Audio
`Signal”, issued on March 2, 1993 (the “March 1993 Patent”)
`
`U.S. Patent No. 5,675,734, “System For Transmitting Desired Digital Video Or Audio
`Signals”, issued on October 7, 1997 (the “October 1997 Patent”)
`
`U.S. Patent No. 5,966,440, “System And Method Of Transmitting Desired Digital Video
`Or Digital Audio Signals”, issued on October 12, 1999 (the “October 1999 Patent”)
`
`Audio/Video Compression:
`
`U.S. Patent No. 6,014,491, “Method And System For Manipulation Of Audio Or Video
`Signals”, issued on January 1 1, 2000 (the “January 2000 Patent”)
`
`Singapore Patent No. 67158, “A Method and System for Manipulation of Audio or Video
`Signals”, issued on May 31, 2002 (the “May 2002 Patent”)
`
`New Zealand Patent No. 337344, “Method and System for Manipulation of Audio or
`Visual Signals”, issued on September 9, 2002 (the “September 2002 Patent”)
`
`Australia Patent No. 752057, “A Method and System for Manipulation of Audio or Video
`Signals", issued on December 19, 2002 (the “December 2002 Patent”)
`
`China Patent No. 1252917 “Method and System for Manipulation of Audio or Video
`Signals”, issued on September 10, 2003 (the “September 2003 Patent”)
`
`Applied Encryption:
`
`New Zealand Patent No. 502871, “A System And Method For Manipulating Computer
`File And/Or Program”, issued on March 12, 2002 (the “March 2002 Patent”)
`
`U. S. Patent No. 6,615,349, “A System and Method for Manipulating a Computer File
`and/or Program”, issued on September 2, 2003 (the “September 2003 Patent”)
`
`Singapore Patent No. 93860, “A System and Method for Manipulating a Computer File
`and/or Program,” final issuance pending
`
`5 The description in this section is for informational purposes only and is not intended to limit or otherwise affect the scope of
`claims in any one or more ofthe patents mentioned herein. The full scope ofthe inventions described in these patents is
`defined by the claims and their equivalents. Nothing herein shall be used for claims construction, infringement determination
`or for any another purpose, except to apprise the reader of the general nature of the patents described.
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`Proprietary & Confidential
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`9
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`KILLEN :3’ COMPANY 1.L(,‘
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`CONFIDENTIAL
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`Page 00012
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`SST-039842
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`Page 00012
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`SightSound Technologies, Inc.
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`Audio/Video ECOmmerce
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`March I 993 Patent — “Method For Transmitting A Desired Digital Video Or Audio Signal”
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`October 1997 Patent — “System And Method Of Transmitting Desired Digital Video Or Digital
`Audio Signals ”
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`October I 999 Patent —— “System And Method Transmitting Desired Digital Video Or Digital
`Audio Signals”
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`SightSound’s eCommerce issued patents are directed to the electronic sale and distri