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`Verizon Wireless
`Verizon Wireless
`Exhibit 1074-0001
`Exhibit 1 07 4-0001
`
`

`
`Chapterl
`Application
`
`Music is from ringing tones,
`game is from characters
`
`i-Modehas acquired 200 million subscriptions in only eight mon:lhs from
`1he s1art of savices_
`From1his h'rnd, directionality of next savices has started to be
`recognized
`That would be delivery of contents, such as <'music" or «games"_
`However, such savices cannot be realized at a single bound
`This is because bofu a comnumication rare and functions of mobile phones
`are not yet sufficient_
`Building on deliveries of ringing tones and characters fuat have already
`been supported among people, nmsic delivery and game delivery to be a
`goal for 1he time being will be realized
`
`Mobilephmeservia:swill
`become faster_ If so, it beco.nes
`possible to delivermi: onlytext
`information but also high-rnpacily
`data, suchas sounds, images or
`video pictures, __ _
`This is a scerurio fuat h.l6
`been to1d col.Bltleis times up to
`now. Now, 1hisscena:rio h.l6
`
`become fadnal suddenly. This is
`becauseconlenl:providersrelating
`to "music~ Note land ~game~have
`all started beca:ning serious about
`1he deliveryusing mobile phmes._
`In 1he music ddivay
`experimmttlui:will be startedin
`April2000by NTI'Dommo
`(N1T Mobile Comnnmica:ions._
`
`Network, In:.), ninereenmajoc
`record
`companies have joined a
`review meeting Nate 2)_
`Manufacturcrs ofportable video
`game players, suchas BANDAI oc
`NlNfENDO,have alsostrted
`realization of communication
`games usingmobilephones neJK"
`spring2000.
`
`lklivery of sounds li.Dd images
`ll«oming popular
`As mentionedabove, 1he
`reason why movement of content
`providers has beoome intense is
`because1heyhave ~~
`
`NoCi!: 1) Herein,. it is defined as music wilh
`lyrics recocdcdm compa<t <iscs (CD). <Ill:_
`
`Fig. 1: We can sceaom""' lhlll:willbc ao::cpt<:d bymanyuaem, as -'1
`These are "ringing too: ddr..:.y' and "chan.derdelivery". GlGA.Nclwmb has
`sbrtcd aoma:s lo deliveriqn~codcs foc riqj'lltoo<:s mmSeplctdJcrl999, ani
`acquired l!ll,OOOm""' inoolyou:modh. u..,..,.need loenlcrlhedawdmdedirqd
`code by hand, bmsliD many dscriptionswm: acquired_ Characlcr delM:ryseJVices
`sbrtcd &om June 1999byBANDAI re.acbcd4!1l,OOOsmscriptionsattbc erd <I
`October. Ibis proves lhlll: one om <I appmxima.k:ly fue i-M>de subocribas u:
`utilizi'll tbc savic<:s. The turrhcrof wbocripliom is aoapproximote 6gmc in mid
`October 1999, respecivdy. (Gnph: tli.s ~)
`
`116
`
`"Delivery using mobile phones
`willbegoodbusiness~_ In
`actuality, delivcry business of
`"music~ and "'images~ using1he
`existingnersonaldigital~lluh:"
`(PDC) me1hodhasbecome
`popularevenin 1he
`communicatimenviroommtata
`low rate, 9.6 kbits/sa:_
`i-Mode byNTIDoromobas
`acquired200 million users in only
`eight mon1hs since snrting1he
`services in Febru.y 1999_
`Among1hese, users of a delivery
`service ofchamctrr images:
`~Itsudemo Charappa (Chatactas
`anytime)!pmvidedby BANDA£
`amountingto 400,000(Fig.l).
`An input codedelivcry
`service ofringingtones provided
`by Giga Networks is also rallying
`suppoctsNatc)_ Re~dlessof
`complication ofinputpma:dures,
`subscnbers have exceeded
`100,000 on]yin onemon1hsiu:e
`starting paid savices..
`J-PHONE Group, DDIIIIX>
`Group andAstd Gronp, etc. are
`providing ringing tone delivcry
`services on]y wi1h
`telecomml.Blicatim fees.
`
`To be basis of e~ollllllerce then
`Mr _ Takeo Takasu, Presidatt
`ofBANDAI, a:nalyzes such
`strenuws e:ffirts ~esame as
`mobile-phme chinos..
`Different:Ution of ov.n mobile
`
`NoCi!: 2) The record OllllpOJiics 1hill
`puticipali:: in l!f<>bile M<:<ia !}islribo:tion
`(MMD) Service lkview M<:etiag are Aslro
`Sins, Ualimill:d &.:coni. Avt:J<, Zetinu.,
`SONY Music &ertUnment_ Toys Fadllcy,
`TD>hiba EMI. Tolrnma Japan
`Cmmmnicati<ms,. Barrier &cc.lbJuls-<lll
`&ertUnment. BMG Fan lloosc. PC Rights,
`For life R.:cocds. PRY AID RECORDS
`INC..I'I:Ilym:r. MIDL Universal Music.
`l.aslram CNpon1ioa, WUDcr Music J~pm-
`
`Chpkr Z e Applic:atioa
`
`phoneswi1h 100yenamon1h
`from o1heJS will be a reason why
`becomingpopu1ar.~ Users can
`customi1c 1heirmobile phme "to
`be private~ as long as using a
`ringing tone andloc cbarn.ctrrs.. In
`
`addi tioo, tbe ringing tones and
`characters fulfill a role to assist
`communications with lo - and
`friends {FIJI:- Z).
`Not only users but conlent
`providers seem to feel attracted by
`such services. This is because not only
`
`Fig_ 2: Rc:oson 'Idly ddivail:s ofqiag times - - IIC p--
`
`'Ihc:sc ac.....J .. "sadgc:ls"ltr anmnni<Xinn• !III.Cb .. lislmiag ta ...._m.gina-.,. tog::tbc:r.
`or sluJwillg -tagdbc:i< 1hc ddivay ofbolb 1hcliDgiag-.,. md- is also a
`...,... to -
`............... m~bilc plume""_ (Il1osb>lal by Goic:hi MlomEo)
`
`Table 1: Dow.doo_d ruk of ringing -••
`Based 1lplllll sales data fur Scpll:mb<r 1999 in Jliaging T011c C<.lleclion-• ...mch is •
`vemhg machine of ringing - ·• by CAJlCON (Table: C.pcon)
`
`11
`18
`
`19
`
`20
`
`Kewpic J-min cooking
`
`My Heart WiD Go On
`
`G-mcn75
`
`Cdinc Ilion
`
`117
`
`Verizon Wireless
`Exhibit 1 07 4-0002
`
`

`
`earningaprofit, buttheseare
`effective as marketing mol£, as
`we11 ifmobilephooesareusal
`for trial Iistening1D music, users·
`reaction can be directly obtained"
`(Mr. Hiroshi Inagaki, Chairman of
`Warner Music Japan) (TaMe 1).
`However, cu:rrenl: mobile(cid:173)
`phone services arenot equipped
`with a communicatim
`enviromnmtand b.ll:"~ soasb
`deliver "'musiC and "games".
`Consequently, the content
`providers target at expamion 1D
`thedeliveryof"':mutic"and
`"games", building on "ringing
`1Dnes" and "c11ara:t:eis". When
`this deliveryis acmmplisbed, the
`platform will be a strong pathway
`of e-comti~~;XC (EC) for
`individuaJs. It is justmakingthe
`firstmovefornow.
`
`Starting from ringing toaes
`for music delivery
`
`"Needless 1D say, the final
`target is music delivery" (Mr.
`Yoshitaka Touge, SystrmAdvisor
`ofGiga NetworksMMBusiness
`Promotion Office). However, it is
`notrealistic 1D delivcrmusicdata
`in a form ofMPEGl Audio layer
`lli (MP3) or .Adaptive Iranslhnn
`Acoustic !))ding 3 (A 1RAC3) out
`ofnowhere. Thisisbocausedata
`volume is 1Do great. at 3 Mbyles b
`5Mbytes. andittakesalmostone
`hour1D downloadpermusicwith
`thecurrentlineNutc-t)_
`Consequently, the mutic
`delivery will start fromringing
`1Dnes first Only a mimrchange
`ofhard~ in mobilepbonesis
`requiredforthis, andrights
`
`Mimic
`
`~ 3: l!ingiltJI-es have mass aRJeal
`'The fir.aDKWe fur delivery of .....ic ..Dog nwbile Pu>nes wilslart i'om -DngiJog
`limes-. Not ooly the dati volume per suag is ....U. bot it rei(Oires less dJ.mr:e iR
`lurdwarc. ID ad<ilioo. simP< riglds luD<Iiog is also a e;rmt reason. D tile caoc oftke
`riDging -c:s. riglds luD<Iiog is mcrdytD pay copyriglrt fees tD Iapacsc Soci.<ty fur
`Rights of Amllon. C<oaposers 01ld l'llhlisb.crs (JASKAC). ID the mea111ime, if soomd
`SOIII'"cesrecordr:d.i:ll. CD ilK: triedtD be ulilized,.itbo:OIII.esll.a:essarytD~te llllt
`oalywilb IASRACbortwitk original ecilionrigbtloolders, such as a rec..-d """''"I'Y
`or a music pablishcr. (lllmlralion: tkis mapzin<. illosnll:d by G.iclU Nionou.tso)
`
`1 8
`
`handling on the occasion of
`delivery is compamtivcly simp1e
`{Fig. 3). Then, im]IO\'eliiCDI:Of
`sound quality will gradnally
`become closa1D mutic.
`What1D startatfirstinorder
`1D improvethe sound quality of
`the ringing1Dnes is 1D reproduce
`chords. Astel Group has already
`launched a PHS terminal that can
`simultanwusly reproduce three
`sounds, and has started delivery of
`ringing1Dnes. Even among
`mobilephmes, manyofmodds1o
`be launchedatthe endofl999are
`equipped with a fund:ion 1D
`simultanwusly reproduce three1D
`four sounds.. It was p01Sib1e1D
`manually enter a ringing tone
`using a so-called "ringing1Dne
`book" with previms single-sound
`reproductimfunctim, but that is
`not going1D work because input
`data volume is increased with
`chords. In other wocds, it
`becomes necessaryto deliver
`ringing1Dne data.
`NTTDocomowillstart a
`ringing1Dne deliveryservire with
`chords using i-Mode a1ongwith
`the launch of a chord reproductin
`modelinDecemba 1999. Otha
`mobile-Jitme providers seem 1D
`start similar services.
`
`Re-use ofK.I.raok£dl.ta
`Such chords are realized by
`reproducing "simple MIDI" dO.
`
`N- 3 ) The sc:nia:
`cilllllDt be:
`reprocb:ed
`immemlil:ly after
`downloo.ohg, bot
`ooly an iapot code
`isdclivued
`(pictorc). A user
`has tD tnnscribc: tile
`code ""lhc paper
`<lOICe, and tk<n. has
`tDeJIIuitintDtke
`nwbile P,...c again
`(pictorc: Vulco
`lktorc Dept. of
`Head Office).
`
`Cb.ptu-2 e AppHc:aUea
`
`The simp1e MIDI data is a
`standardwhaeMusical
`Instrum:nt:Digitalint:ediK:e
`(MIDI) is simplified Mobile
`phones having a chord
`reproductimfunctimhave a
`
`soundsoUR:C LSI 1D reproduce1bi>
`buih-in. Ifthis soUild sourreLSI
`function is fintha im]Iovt:d, the
`soundqualityofde~b]e
`contents can be improved
`Business opemtocs andinslmmenl:
`
`manufactu:rers target at getting
`closer 1D the rqrodud:ionfund:im
`of"':music"atlast(Fig. 4).
`Parties who provide conlenls
`alongwith this plan are
`te1ecommmicatimslun.oke
`
`~ 4: Goo!. is .....ic
`delivery
`Snccess of ringing tmles
`p-ocb:cs dcm.imd ofhigh
`"""""-quality. and
`lurdware has a durd
`rep-o<b:tiaa. fimction. II
`T C:!iipDIISe lD tms,. die
`delivery ofmgiag -.::s
`wil be: ~dfrom
`services of currellt si:ag1e
`-.::s tD clurds._
`hpcatiag this, realizatioa
`of music delivery will be:
`tlrgdl::din 2001 or blil:r
`(drawing: Ibis mapziRe).
`
`......... , ...
`. ......
`-~-- I
`
`q
`
`-
`
`End ofl!l!l!l
`
`2000
`
`l'mm2001
`
`eOectiwru= as a. pathway :1m
`advertisement. At pm;eut. our US
`
`We have matters to consider before
`"Package will no longer be in demand''Head O:flire is delivering music
`using the Internet :1m fito.e.
`divnsifi.calion stmlegy of the sales Acmtding to this :report. the
`advertising effilcts in the case of
`:funrud:s should be considered.
`Combining a padrage medium, such delivering music via. the Internet
`as CD or DVD-«udia, with music
`seem to be exoel.l.eut. Whoeva:
`receivOO this~ shows high
`deliwey, the mmht can be
`eqaxled as similar to movies.
`paclrage pmchase rnle. In addition,
`For eumpl.c; a dlange of price oollect:ion of cus1omef: daa. will be
`helpful :1m matbting.
`acanding to ''msbnrss" of the
`Onrell.ect:ion, Japan has a.
`oootents can be ooosidemcl First,
`newoootents are deliwmd with a
`clifirreot environment than the US.
`high price one week prior to the
`There are vaious attempts at music
`padrage sale. "I'hm, the paclrage
`~,such as kiosk: type 01:via.
`will be on sale; aod the IXllll:ems will the lntt=et, but fiom a. ~s point
`of view, mobile Jhmes are the most
`be~ at a.lawft: price nm.
`Oneymr l;m:, a.grea:est hits album uses:-fiiwdl.yby :Ia:. Its diffusion
`will be sold as a. padrage . . . One
`ta:e is high, and the mobile phones
`are pmetGded into usns' l.ifu styles.
`cycle of movie IXllll:ems is
`approxima:el.y 8 yems, but we are Wrth the mobile phooes,
`advertisement has wings due to
`ooosidmng to cycle music around
`word of mouth by people. This is a.
`one and half years.
`HOwever, at the beginning, the strong medium.
`(Interview)
`music~ will demonst!a:e its
`
`Mr. Hiroshi lnaga]ri
`(pictore: Ibis DU.pz.iRe)
`
`Chainoan
`Warner Mimic Japan
`
`The movie industry expanded
`its market by variously changing
`sales fOrmals of one production
`through the time not only fur
`thN:ers but also fur cable TV
`1noadaming 0£ rental. videos.
`Even fur~ of music,
`be10re discussing "pdage will no
`longer be in demand", a
`
`119
`
`Verizon Wireless
`Exhibit 1 07 4-0003
`
`

`
`business operfits. XING and
`Daiichik:osbo seem to gctready
`for realizatim ofdelivcry savioo.
`ofringingtones.. There&>mwhy
`thetelooommmicationskaraoke
`business operfits spend e:lfur1s is
`because data piqllllOOfor Jumoke
`can be re-used.
`MIDI data utilizedforthe
`currentteleconmunications
`karaoke is around 100 Kbytes. In
`the meantime, data vohmeof
`contenlsdelivenrl wi1hi-Modeis
`up to 5 Kbytes.. Consequently,
`content providers convert: MIDI
`data into simple MIDI to reduce
`the data volu.m:, and ddiver it
`
`High ltarrier of musk dellvay
`An experiment about
`"music~ ddivay, whidl is a final
`goal, will also be startaL NTT
`Docomo will implemeri: a music
`delivery experiment utilizing data
`commnnicatimat64 kbitslsa: by
`PHSfromApril2000il_
`However,ittakes seven to eight
`minutes to dawnloadonetitle in
`ATRAC3, whichisoneofthedala
`formals assumtrl as delivcry
`contents_ It is coiiliiiCI1led, "The
`main target is services wi1hiMT-
`2000~ (Mr_ Kushiaki Naoi,
`Manager in charge ofNetwork
`Utilization Planning, MObile
`
`llqnovmart of
`
`/ ~-
`
`Rcoblotio:Raf
`oblavolmno
`
`0 -..
`'\! .. !l
`" e
`
`0
`
`"'
`
`ofblao>or
`
`IMT-2000
`(384 khitslsec)
`
`ms data c01111111111i.ca1Um 01'
`cdmaOnc
`(64khitslsec)
`
`PDCS)I!iWR
`mobile p.oac
`(9_6khits/sec)
`
`~ 5: Mime ddiverywilh IMT-2000rcqairc SlliiiC cr"'-livc lbiakiagfun-~
`In •ssocialiml widt improvaDeld of • ciHmllllllicilti..w Tillie~ apacity of ddivcnbk music
`cmlli:llt!i is also illcreased VJdi die: sen.ices ill mrrmti-NDdl::,. 5 KbyRs per a.b:lltis
`.. _.-limiL ff rcdzalion of~ lime at 10 scWIIIk ..-less ba...t opDII dois
`is a roogllimh.._tion. of ddiveryc~ cva~ifiNT-2000 ~s at384kbitslscc .-e
`-<l dois cllliiUit be occ<Dplislled with ddivlry of mosic IDIII:Ids du.t uc oli<B
`olilizcd ovu 1hc IItanet. sa.ch os MP.l_ Cimsel(1l<'lltly, tdc cOIIIIIRIIIicmoas bnoh
`boo:Dcss ~lllr.i uc pl;umiogiDn:melhc c-..du.tc• be ddivcralio 10
`secoads orlessbyc<!lllbinia&1hc !llimPe MIDlfunnotwitk MP.l. et.:_ (Gmph:dois
`IIIOpziac)_
`
`ComputingBusinessDept_,NTT
`Mobile Communications._
`Network, Inc_), but one to two
`minutes ofdownloadingtimewill
`ben:quired(Fjg_ 5)_
`If the upper limit data
`vohnneofi-Modeis 5 Kbyteslti a
`basis, aroughindiafionof
`download time will ~1 0 socmds
`or less~_ However, NTIDommo
`believes, llseiS may accept: even
`ifittakes 1 to 2 minutes to
`download music conlenls last:Dg 3
`to 4 minutes"(Mr_Naoi,NTT
`Docomo)_
`In the meantilne, rc:aml
`companies seemnmto
`immediately consider delivery of
`entire music(sa: "there is a matta
`to consider beb"e ~eliminatim of
`package"inp_ll9)_ ~Althwgh
`mobile phmes will be a dominant
`platform, it will further away to be
`business~ (SONY Music
`Entertaim:rl:nt)_ ~we are going to
`provide trial listing con1l:n1s foc
`about 30 sa:mds for free at :first"
`(Mr _ Y asuham Shoda,Projed:
`General Manager ofNew
`Technology StndyCoiilllli11ee,
`Warner Music Japan)_
`
`ltealizatioo t.y adding some
`crtative thinking
`In order to ddiver contents
`inMP3 orATRAC3 for~10
`seconds or less", there is onlyway
`to wait for services at 2 Mbiu. /sec
`
`Moll: 4) Jn die case: of 1lsiag a piiiCI<d
`ciDIIIIIIIIIIica..U... service at 9~6 :kbitslsec with_
`PDCmcdrod_
`
`'Nob: 5) There is also ;m idea:: l1len~: is a
`c<~~~~p<cssion mc1hod foc bciog spccializal.ia
`frequency bonds ofmosicolioslnoRents(cid:173)
`voice ia TwioVW aadATRACl_ ffdoisis
`utilized. the CD!IIIp'essioa.n'b: em be
`illqr"""a (Mr_ Tobloiro Tmab, Deputy
`E.aginecr of N"ukt:tiag Oflioo, Scmic.,.....__
`Ilivisiaoo, YAMAHA)_
`
`of communicatim rate, which wil
`be realized smu:timein the futme
`wilhiMT-2000_ Inonlerto
`realize the music delivcrywi1h
`IMT-200at384kbitslsa:, it seam
`that it is necess.ynotto simply
`deliver coDI.erlls in MP3, etc~ but
`to add some creative thinking_
`There are sane means for
`this_ One is to reduce capacity of
`contents_ YAMAHAandFace
`who individually advOCli.e the
`simple MIDI standard insist that
`the data volume can be 500
`Kbytes or less by cm1bining
`sound data inMP3 wi1hBGM
`data in the simpleMIDL Sound
`data can be reductrl during a time
`slotwi1hout singing voice Noll:>_
`~e similartechniquehas
`already 1x:m adoptedforconlenls
`oftelooomnnmiafiouskam.ok If
`BGM is MIDI, even if a data
`encoding rate of singing voice to
`be synthesm:d there is deaeased
`to suppress thesoundqualityto
`some degree, the soUDd wruld be
`heard clearly" (Mr_Masato
`Nakanishi, Senior Managing
`Director ofFace)_
`Olher than this, there is also
`anotherwayofthinkingwhere
`downloading of music should not
`be relied upm usingmobik:-j:ixn:
`lines_ This is a me1h>d to
`dis1nbutea large capacity of
`encodedcoDI.erlls to users in
`advance byusing anolbcr line,
`
`M<* 6) Fm- ~- NINTENDO(cid:173)
`KONAMlestJ.llliohcdojoioi~e - -
`2r eoc dcvt:loping JliiiiiC softwaio: byllliliziog
`mobile p.oacs io mid October 1999_ 1'11.c o:w
`CmlpUiywill. dt:vclop software du.trnns"" •
`gam_e cnrsole cOIIIK'!ckd to a mobile p..m._e_
`The goolisiD -C<JIII.C apwitkionow.1ion_
`'Whick .is a game combined "wilb.
`cDIIIIIIIIIIicatioas- (llr_ Hiroohi Y"""'uchi,
`~c<ident ofNINTENDO)_
`
`such as data broadcasting_ For
`example, a user inserts a mCIIKIY
`card where run foc ten cmipad:
`discs (CDs) is n:mtdedinto a
`mobilephme, andcaniesit
`around If there is music where
`he/shewanls to listen to, he/sbc
`purcbast:sakeydatato decipler
`the encryption using a mobile(cid:173)
`phone line, andreproduces the
`music_ Ifusingsuchme1h>d, the
`music colll.eills can be sold
`wi1houttransmitting a large
`capacity of d3:lL
`
`ICharader delivery changes
`
`itself into game delivery
`
`Not only music indus1ries,
`but game industries pay dose
`attention to mobilepbooes..
`There are two rClliOIIS why
`game relating manufad:ureiS
`expect [business through] mobile
`phones.. One is a pmsibilityto
`produce new game software by
`utilizing a networkfm:d:im NotJ:6),
`and another one is to enable to
`utilize a mobile-Jilone nd:wockas
`a delivery means of software_
`
`Charaderdellvery asH turned
`out
`
`However, since the cunent
`communicatimservice is a low
`transmissionrateand the screm
`dimensions ofa liquidcrystal
`panel in the mobile phones is
`small, "We are beating our brains
`under n:slrid:iom where nolhi:ng
`can be realized" (Mr_ Kiya;bi
`Torinmi, Chid' orPlanning
`BusinessOffice,NAMCO)_
`Under such sitwi:ions, smiC
`services have been tried oni(cid:173)
`Mode_ Ammgthese, wluthas
`aUracted users· support was a
`service to delivcrcartom
`"characteiS~ and pictures for
`mobilephmes..
`The typical one is I1sudemo
`Charappa (Cbam.ctecs anytime)!
`(Fig_ 6rprovidtrl by RANDAL
`This is a service to receive
`different screen data every day by
`paying 100 yen a mmth. The
`subscriptiom have exa:eded
`400,000 bythe end ofOctoba
`when appmximatelyfivemonlhs
`have passedaflrr the start of
`delivery_
`
`1
`
`Fig. 6: Character delivery services attracting i -MOde us en;
`The character delivery service "Usudemo Cbarappa (Characters anytimc)!n
`provided on i-Mode by BAND AI_ A diffen:nt character scnx:n is delivcn:d to
`a user's mobile phone every day_ R<:ccivcd characters can be utilized as a
`standby screen_ (Pictures: B;md;ri)
`
`Verizon Wireless
`Exhibit 1 07 4-0004
`
`

`
`lllebile plio•.,. takillc: ill mmir, ~:amB ••• ~••en:r. as -n
`
`Cluopeer2 e Applicalioa
`
`Next is empathic c:harader
`In association with lhe
`evolutionofmobilepbones,
`delivery ofcham.cters 1hi is
`attracting popularity will aJso
`evolve.
`First, it will be co1orized
`NITDocomois goingtn laumhi(cid:173)
`Modeterminalswhere a cob
`liquid crystal panel is moliiiled by
`1heendofl999N""' 7l. Onlhenew
`terminals, it becoiiiCS plEilbletn
`display graphics intenhange
`format (GIF) t files with 256
`co1ors.
`In association with lhe
`appearanceoflhe new taminals,
`
`characterstn be delivered will be
`colorized Mostofcluncters
`originally have cob. and lhey
`were black-and-white lx:amseof
`no choice. Colorization is a
`natural transition(see ~Attraction
`of charactcrswill be in~
`along with evolution of mobile
`phones~ mentioned below).
`Fo11owing1he mobile
`phones where a cob liquid
`crystal panel is mwntal, NIT
`Docomo willlaun:ha mobile
`phone where a Java function is
`mountedby1heendof2000. A
`user can utilize desired software,
`such as games, by down1mding
`
`via a mobile-}ilooe line.
`NITDocomowillmsclme
`JavaJU!Plicationwngmmming
`interface (API) t foc applicli:ion
`developers bytargeting Januarytn
`March 2000. JavaAPI foc mobile
`phones is foc collabomtion
`between Java application (Applet)
`and hardware of a mobile phone.
`Functions, such as playing soonds
`of a mobile phone in certain
`timing, flashing a screen, or
`sendingdatatn a m:twock, can be
`included.
`One of advantages in a Java(cid:173)
`enabled device for content
`providers is 1D mala: it easy 1D
`
`Mr. T.do::eo Tilisu
`
`Attraction of characters will be
`Thedaai:ter ~w. i(cid:173)
`increased along with CVOIUtiOn Of mobile Mode is also aDactive as m.m.-rting
`tools. A popular furtune per
`phones
`~can~ ~y obtained.
`For example, infmmalioo, such as
`In the cmrent ~
`"Popularity of 326 (Mitsuru) has
`~.there are many reltrictioos,
`been rising Sharply since the
`such as~ of onlyblldr.-«<d(cid:173)
`beginning of October-. 1n addition,
`white still pirorres. llereafte£, if a
`the popularity inKyushu is
`ool01: liquid ayst.aL panel is mmmted
`particulady high," can be obtained
`in a mobile p1uloe, daacteJs can be
`As tenniruds connected to the
`oolorimd, and if there is a Java
`lotemet, mobile phones ~
`:fimdion, it becomes easier to utiLi2r
`preceded bype=mal computeJs. As
`various ideas., suchas becoming
`the advantage of the mobile phones
`movable by a user's intmtioo.
`compared to the peiSOIIIJl. oompulels,
`In this way, a boundary line
`since a usee always CIIIJies a mobile
`between a game oonsole and a
`phone withhiml'her, push-type
`mobilepbaneis :filding away. HOw
`contents am be easily delivered.
`the grouping should be hemdtc-r is
`We would like to consider usage by
`not clearly discerned yd in the
`utilizing a multi-destinalion
`pm;ent moment. COIIStl!J1lelllly, we
`~-
`are going to deal with both
`Wblll: we expect from mobile(cid:173)
`situalious.
`phone business opmdms is to
`Wepossess many daacteJs
`prated: oopyrigbts. Service
`bom from cartoons. Om: sales of
`provision in ''closed wodd" that
`housewares with such dJamctels
`cannot be~ byotbrr than
`oa:upyapproximalely ~
`subscn"bels can be easily reali2Ed. It
`ofthe total, and we are ronsidering
`can be staled that this point is also
`that it can be inaeased through
`one of the attractions about mobile
`oonoepts.
`phones viewing from cootent
`business.
`(Interview)
`
`President
`BAND AI
`The~ ~ st'n'ice::
`"Hsudemo Chlmlppa. (Chamcters
`anytime)!'' started from June 1999
`viai-Mode by NIT Docomo is in
`good demand. The number- of
`subscn"belshas exceeded 400,000
`only in Less than five months from
`the start of the st'n'ia:s.
`Somereasoos can be
`ooosidm:d, but the point to reaLi:t£ a
`difiiRnt mobile phone finm otbas'
`with payment of 100 yen a month
`seems to be wdl accepted This is in
`oommoo with the ringing tones.
`
`develop intrra:tivl: applicli:ions.
`BANDAI lhathas produced
`resulls with the crund:erdelivery
`sees, ~u lx:miiiCS possible 1D
`deliver "empathic" cham.cters
`becauselheJava-enableddevices
`have appea:-c:d" (Mr. Takcihi
`Slrim1zu. SectionManagerof
`Development& Purdla>e, New
`Property Development Division,
`Deve1opment Headquarters).
`They believe 1hat cba.nK:ters lhat
`move in the mobih:pboneand
`communicate with useiS will
`become popular.
`The suppotting fact is lhat
`software with the similarcouctpt
`has alreadynm on a personal
`computer or a game consoh:. For
`example,asatypiralexanpk:of
`e-mail software fora personal
`computer:, there is "POST PET"
`(Fig. 7). A virtualeledronicpet
`kept in a personal computer
`delivers e-mails.
`As an exampk: of software
`for a game console, lhere is
`~SEAMAN'. SEAMANwill
`develop in lhe game console
`environment byfeedinglhe virtual
`animalreferredtn as SEAMAN,
`changingwater [ of1hetank:1 or
`talkingtn SEAMAN.
`It can be easily imagined
`lhat such similarsoftwa:"e will
`appearforamobih:pbone. Ifa
`mobilephonelhatis originally
`equipped with a coiDIIIll1icaDon
`
`(a) Mail Software for PC: "PPST PET"
`
`FIJI. 7: S.O...re bYiat;
`co•mllllic:atlea witlo. "dedroalc
`pd' bs become popdar
`Softwan: breeding adr:ctronic pet" in
`PC or a game console has become
`popular. (a) is "POST PET" by
`SONY CoiDIIIIlnication Network. A
`pet will leave a room with an e-mail
`written by a user, and enters into a
`recipienf,s room~s pet to deliver the
`letter. (b) is software '"SEAMAN" for
`"Dream Cast", which is a gomc
`console by SE.OA Enlelprises. A
`virtual animal called SEAMAN will
`fed wbilcwateris exchangal,and
`after it is grown, a user can enjoy
`communication via an exclusive
`microphone. (Picbrn:s: SONY
`Communication Network., SE.OA
`Enlelprises)
`
`functionis used, delivcryofe(cid:173)
`mail by an electronic pet or
`exchange of an ek:ctronic pet with
`a friend can be easilyn:afuoo.
`Services 1D sell "feed" or
`"medicine" for electric pets online
`will be possible.
`In addition, many of mobile
`phones will be equipped with a
`soundsomreLSilhatcan
`reproduce music, a cob liquid
`crystal panel andloc a sonud
`recognition function from now m.
`In response 1D this, charn.cters will
`be more real, and lheir movement
`
`will be various. These cba:racters
`will move, talk, and da:rx:ewith
`music by key operation or calling
`or act as iflhey are spontaneous
`sometimrs. This is "game" itself
`any more. We can see "game
`delivery" aheal of"cluncter
`delivery".
`
`R~c:e
`1) Y osbio, "PHS omsic delivety by
`Docomo, downloading time will be a
`focus"~ "Nikkei Electronics"~ issued
`Octoberl8, 1999,no.754,pp.27-28
`
`N- ) NTT DoclllllO exloibilood ~Digitol
`Mi>ver 5112i11YP1'.R- wkere a color liquid
`crystd pond is --*d firref<rmce at
`""TELECOM!I!r held iD mid Oclllbcr 19!19.
`Atlhe e:dtibilimt w, ~F50'li-.........&clllred
`by FUJITSU ....t -mO'li- .........uc~arat by
`Milsobisbi Ele<1ric were ahibib:d They ore
`going 1D be b1111£hcd bylhc end of 19!19.
`
`t GIF =file funnat of color sliD .image;
`lllilizediDWWW oflhe IidBndiDgen<ral;
`dcvdopc:d by Composc:r¥C iD lhc us_
`
`t API= m..rface specifi£ai<ws1D coli
`hardware: or so:ftwan::: :n::soura:s of tmDioals
`or OS fimctioos by apPicalion software
`
`122
`
`123
`
`Verizon Wireless
`Exhibit 1 07 4-0005
`
`

`
`Chapter 3 Maintain size and cost, enhance
`playback functions of image and
`Realized
`technology sound
`In 2001, mobile phones will be equipped with playbaddunctions of
`"music" and "gamesD, and they will evolve into e-comrnerceterminals
`for individuals_
`These will be equippedwith an audio decodng LSI for music playback,
`as well as a color Lrn panel forimprovementofqualityofcharactEr
`images_
`Thus, in order to recordanddistribtj:e contents, a small memory card
`will be equipped and storage capacity is further increased, and security
`functions of contents as and a network will be enhanred
`
`. .,... ....
`
`Hanlware is lhaoJi:ed by
`
`The •music" function will evolve
`in 2 stages (Figure 2). First. phones
`will be equipped with a function ID
`play ringlnles at the end of 199'J_ A
`sound generaiDr lSI wTII be newly
`added to rnobo1e phones_
`These wTII be follll'oOiel:l bv
`Mounlif1: music playiHck functions.
`Development is proceeding. Mobile
`phones with this fealure wTII appear
`
`in mid-2DOJ_ These are functions ID
`playback musil: data in formats. "-ld1
`as MP3 {MfEGl Audio layer!!!) or
`AlliACJ (Adapllve Ir:ansform
`~til: 9>rflng ;D used for music
`distribution oorerthe lnternet_>l_
`mtead of a sol.md gene ntor- 1..51.. the
`nobile pl'mrll!s wil haw:! illl cu:Jio
`docodng lSI IU!t-m, and w11 be
`equipped- a >lotl>l fora small
`rTII'ITD'Y 1311(>)-
`0n the otherhln:l, a displ'¥
`
`Mobile phones in 2001 will be
`"'luipped with "music" and "game"
`playback functions, and these wTII
`evolve iniD e--mmrner€E terminals
`for individuals.
`In ordler ID achieve this evolullon.
`playback functions of "music" and
`"image"wTII be enhanced hereaftEr,
`and moreover data slorage Glpacily
`andsecurilyfeaiUresto be a basis of
`ronlent use wTII be enhanced (Figure
`1).
`
`Sound playback
`deviS!..__
`
`Display device
`
`~1:1Mo-
`
`••-ta .(cid:173)
`pllanesin:l.:t
`"'""'*"'~·
`Monodnure SIN Lm panei(1A "1n 2") p'*>t51n b! ..........,d
`hari! bemrn! vi!ible.
`
`::.:;:::::::aMI
`
`'!il("'1\lODim SIN Lm ........ (1.4"1n 2")
`
`Recording
`medium
`
`Small memory 1311 1••..,,. tens of MBJ or
`........... -..ds of
`......,..ct'-'1 -
`MBJ
`
`Security
`
`colori~s Nl 1.:!
`e-..:ed Addii..aiJ
`1he_.,-ofa
`remnlnt~mellnl.....ti;
`1n be ino:n,••m(cid:173)
`Sea.ttyfem.es
`required fir ela:ft>ric
`
`~ ..........
`
`added. .. us1r.llim: in
`
`--··· .. -
`
`by:Gail:hi ~
`
`PI!¥>-* (fmm end of
`1'J'-"l
`
`..
`
`IL I'DIIIPhonic mtPJne :::1
`II. Music playbad<. :::1
`
`sto:h "' M P3 (fmm
`socon~oi20IIJ
`
`Mi
`
`Sound oodoo: LSI
`(A-D/D-A converter+ anplfierj
`
`,SOUnd oodoo: LSI
`(A-D/D-A ronverter+ anplfierj
`
`SDl.nd gE!Ilel"ilol'"l!i
`(built-m D-A
`oorwerterj
`
`Anl>lfier
`
`Slxlnd oode& LSI
`(A-D/D-A ronverter+ anplfierj
`
`16-bit D-A
`Audio
`decodingLSI
`converter
`oonwrtim;l pl;¥lildo: of....,...._ ringiJno>, a r:uln: lSI-~ d .....t; is CDJIIIIIriy Ll!l'd, and!IIUid>,.....
`JPr2: H-.-...,......,._,mg~min-fllmmm
`-
`produo:edbyllii'llandet:bmi""'elc!DUI~ixq'..,..ned1Dasa......-.:um. b..-phlnos1hotMibell!loasalat1h!
`end of 19'J'I, o - 'IIIUidge....-rLSIIOIII b! adlod ani a !lllndng ,_,..be replllll'd- a .....,....r_ f rrdJIIe Jftne>
`ofthe sound--riSI, and1ni- aD-AI:OIIII!rtlnNilh16bi5to131itsof ..,.,._n Addtio,..y, il,.. b~!£011~!
`are .aterrpted 1nbe ~d- nuic Jlla9bld<fuu:lnl!i, !Uih.., M1'3, it is .....,~1n rnwnl an ;ulio~ LSin(cid:173)
`
`neo:essary to add !lots fir o:orpar;t merrury cords and1n in:ll!OSe battery .,..mty. t""''" by t.is ~ne)
`
`function of "images" wTII be
`swill::hed from a wrrent
`monodlrome display to a color
`display in order 1o display characters
`to be real. Atlhe end of 1999,
`several models will be equipped
`with color STN l(]) panel<. Some
`model< equipped with fealures, sum
`as mlor TFT LCD f~i>nels, will also
`appear bv targeting atdisplayif1:
`images in motion with further hgh
`quality.
`In f~i>rallelto this, enhancement
`ofdatastoragecapacily and
`•sounds• or "'i mages•.
`
`and security, whim become
`r"'lUired when recordilll or
`dislrihuling ronlenls_ sum as
`•sourms• or •images" .. Wll also
`advance. For recordif1: media. in
`addition 1D a wilt-in memory that
`has been used until now, the mobile
`phones will be l'1lU ipped with small
`memory Glrdsand small hard disk
`drives. For sewrity funclions,
`"~~functions to prevent improper use
`of mobile phones" and "functions ID
`prevent unauthorired ropv i'l: of
`received IDI11enlx" are ITkelyto be
`added_
`
`If such various functions are
`added as mentioned above,
`oomponenls will be increased
`accordingly, and there is a possibo1ily
`that size, <XlSt and power
`oonsum plion of the mobile phones
`wTII be increased an at once.
`Manufadurers need 1D reariZe these
`functions without chaf1lilll the size
`and the JXNII'rmnsurnplion of
`phones.
`
`125
`
`Verizon Wireless
`Exhibit 1 07 4-0006
`
`

`
`-o f f
`l"'lftd ond5)
`
`B-
`
`~4:~-.rl*•af.-J~_..,. __ __
`Ill roq'*" s8 bylesofdala P"'""''"'dl!"raallon(fnm whon •
`sound ~..,til iti'Dfs;i.e, ...-...w,__.u,ot......tj. bU.,
`IT1U5il: format f<rrirctono.......,. dovdopedby FME.1hi<is
`ll!lb:ed to3 byll!5. The rurrm-o1 1m, sl.l:has a >t3tusor.(cid:173)
`n..merCntmral). ._ mlilced- '""IEily~n­
`..... 1-llll!d. --..ty.nploa! dnm.df~
`d;ta,ro-ofagotom..Cimgtholo;urd)i<,...d I~=
`produa!dbyUts .._,no-d..,mmri ... fnmFACIJ.
`
`Rrst l'iriKIIInes, then music
`playbadc fmclians
`Two evolutions ofthe "sound"
`functions on mobile phones IIIli first
`513 rt from ma.mling a funclion 1D
`simullaneously produce 3 1D 4
`soonds (mord playback functioo)
`(Fgure 2). This lo; a fundlon for
`playing ringiDnes.
`ASTELGrwp released a PHS
`phone with a mord playback
`fundlon called the "AI-32" in July
`1999. and NIT DoCoMo (NIT Mobile
`Commmi:alioo Network. Inc.)
`released a mobo1e phone: ·~ital
`M"""r 208HYPER". According ID (a
`mobile phone W.iness operalor)
`says. "Many of mobile phones 1D be
`released at the end of 1999 are
`going ID be equipped with mord
`reprodudial funclions.
`ltls necessary 1D add a sound
`
`generalor ISIIDalerminal in order
`1D reali>!o these mord playback
`fmdions. The ROHM Groop •-•1
`and YAMAHA respectively released
`ISis. In associatioo IIIith the
`Tnslallation ofthe soond generaiDr
`lSI. rom pooenls for sw nd
`generalioo are changed. as .... 11.
`l.lnlll now ringiDnes ...,re gener....,d
`using a swnding body referred IDas
`a soundifl: mit (like a II!zzer} .
`Mmtofthese IIIli be replaced with
`speakers(Figure :1)•-••.
`H<Mever. this does not
`si;nificantly alfectthe desi;n.
`"1'\:Mere<JruiJmplion is hardly
`<hanged even of the mord
`reproduction fundlons are Jnduded"
`(according ID a mobile phooe
`manufadJ.Jrer engineer}. A mst
`ina ease seems 1D be able ID b