Overview of Enterprise Solutions
`Executive Summary
`Draft 8/18/98
`
`There are two business opportunities the Enterprise Group is analyzing. For the
`context of this discussion we are analyzing both opportunities relative to the
`national residential real estate market only. The business opportunities are:
`
`1) PictureWorks becomes a national residential real estate data consolidator and
`distributor.
`
`2) PictureWorks offers a 'prepare and post' internet-based imaging solution that
`includes both products and services.
`
`Details on both follow.
`
`I. PictureWorks Becomes a National Residential Real Estate Data
`Distributor.
`
`The primary assumptions that drive this opportunity are:
`
`a) There are many 'requestors', ie, realtor.com, who require both property data
`and photos in their businesses.
`b) There are many 'providers', ie MLS's, of both property data and photos to the
`requestors.
`c) There are no standards to either receive the data or provide the data.
`d) There are huge administrative challenges in keeping current with the data.
`e) Requestors have set current competitive benchmarks for the data at two
`levels 1 )who has the most data and 2)who has the most current data. A third
`competitive benchmark will be set and that is 3)who has the richest data.
`f) There is value in both current listing property data and photos as well as sold
`listing property data and photos.
`
`PictureWorks has secured very preliminary validation of both the primary
`assumptions and the need for a national residential real estate data broker. In
`addition to initial research, PictureWorks has completed this initial validation
`through conversations with Real Select, Coldwell Banker, HNC, MLS
`organizations, Pacific Union and re.com.
`
`The Basic Service
`
`The basic service of the proposed distribution business is to provide a single
`clearinghouse point of access to residential real estate property information. In
`essence, to match the providers of the data with the requestors of the data.
`Prepare and Post services, described later in this document, would also be
`
`PictureWorks Confidential
`
`8/23/1998
`
`CONFIDENTIAL
`
`SUM M IT6-00001686
`
`Exhibit 2034
`Apple Inc. and Twitter, Inc. v. Summit 6 LLC
`IPR2015-00685, Summit 6 LLC
`
`

`
`offered at no charge to those who want to add additional photographic content to
`the database.
`
`Value Proposition
`
`This basic service proposed above is not available on a national level from any
`company today. A few, small local solutions may be cropping up, for example,
`re.com. The value proposition is outlined in the following examples.
`
`a) When Coldwell Banker wants only their property listings to flow into their
`consumer web site, they cannot secure this data from MLS's. Each office
`must enter the listing data, in this example, twice. Once for MLS and once for
`Caldwell's listing service. Value Proposition: The proposed distribution
`business would enable Coldwell Banker to make a single request, a single
`point of entry for this data. This equates to an exponential increase in
`efficiency, an exponential decrease in cost, an exponential increase in
`competitive standards and ...
`b) When realtor.com wants to feed listing data from all MLS's into their site, they
`need to pursue and secure a different licensing agreement with each of the
`380+ MLS's. And they need to set up completely different mechanisms for
`receiving the data for each MLS, since there are no standards. Value
`Proposition: The proposed distribution business would enable realtor.com to
`work with one single point of contact to receive data feeds from all 380+
`MLS's. This equates to an exponential increase in efficiency, an exponential
`decrease in cost, the ability to set a new competitive standard and the ability
`to focus on their core business and ...
`
`Pricing - Basic Service
`
`Initial pricing plans include the following:
`
`a) A fee is paid to the data providers by PictureWorks when their data is
`licensed for distribution via PictureWorks. These fees can be based on a % of
`revenue PictureWorks realizes, or a flat fee per listing etc.
`b) PictureWorks may also receive a fee from the data providers for the service of
`brokering their data to requestors.
`c) A fee is paid to PictureWorks by a requestor when a provider's data is
`licensed. These fees can be based on distribution scope, per listing, yearly
`flat fees, a% of requestor's revenue etc.
`
`Data Acquisition
`
`To be fully immersed in the business of a national data distributor, PictureWorks
`will need to secure and house data from all national MLS sources. The MLS's
`should be a source of both currently listed data and sold data. This is the base
`level data required. Any other data that adds value, ie from Experian or others,
`may also be licensed by PictureWorks and added to the database. PictureWorks
`
`2
`
`PictureWorks Confidential
`
`8/23/1998
`
`CONFIDENTIAL
`
`SUM M IT6-00001687
`
`Exhibit 2034
`Apple Inc. and Twitter, Inc. v. Summit 6 LLC
`IPR2015-00685, Summit 6 LLC
`
`

`
`will also add value to the database by possibly securing and certainly storing the
`richest photo content to complement the property data.
`
`Target Customers
`
`Requestors fall into two categories:
`
`a) Companies interested in currently listed property data.
`b) Companies interest in sold property (historical) data.
`
`Types of each are:
`
`Companies interested in currently listed property data:
`*current opportunities identified are with web sites such as real estate franchise
`sites, listing consolidation sites, regional sites, specialty sites, individual agent
`sites, etc.
`
`Companies interested in sold property (historical) data:
`*mortgage lenders, appraisers, software companies, consumer web sites
`(MapQuest), etc.
`
`Initial providers are the MLS's.
`
`Enhanced Services and Related Pricing
`
`PictureWorks can easily incorporate value-added upgrades and services into the
`base distribution business. Additional revenue sources would become available
`as a result of offering the services. Some possibilities are:
`
`a) Providing data to the requestor with a search engine. This is especially
`valuable for the regional, specialty, broker or individual agent site that may
`not have in-house access to search technology. Pricing: incremental fee for
`receiving the search engine in addition to the raw data.
`b) Providing property valuation services. For example, offer HNC's Internet
`AREA's for on-line and interactive real property valuation analysis. The
`consumer would see a button labeled 'what is my current home worth?'
`Pricing: incremental fee for receiving the home value service in addition to the
`raw data.
`c) Providing mapping services. For example, offer MapQuest/TripQuest
`services. Pricing: incremental fee for receiving the mapping services. If the
`mapping service is offered within the requestor's website the price is $X, if the
`requestor's website simply points to MapQuest for the mapping service, the
`price is $Y.
`d) Providing customer lead generation and follow-up mechanism. Offer NetCard
`as a way for consumers to send photos of prospective homes to
`family/friends. Offer NetCard as way for sites to entice Realtors to use the
`
`3
`
`PictureWorks Confidential
`
`8/23/1998
`
`CONFIDENTIAL
`
`SUM M IT6-00001688
`
`Exhibit 2034
`Apple Inc. and Twitter, Inc. v. Summit 6 LLC
`IPR2015-00685, Summit 6 LLC
`
`

`
`site's services. Offer NetCard as an in-house communication tool for referrals,
`announcements, and other company communique. Pricing: incremental fee
`based on number of NetCards sent or flat fee for unlimited use, or etc.
`
`II. PictureWorks Offers a 'Prepare and Post' Internet-based Imaging
`Solution that Includes Both Products and Services.
`
`The primary assumptions that drive this opportunity are:
`
`a) There are many professionals who need to submit photographs to on-line real
`estate destinations.
`b) There are on-line real estate destinations that need to receive photographic
`data.
`c) There are no standards to either receive the data or provide the data.
`d) There are significant technical and skill level barriers to entry.
`e) Requestors, many of whom are on-line real estate destinations, have set
`current competitive benchmarks for the data at two levels 1 )who has the most
`data and 2)who has the most current data. A third competitive benchmark will
`be set and that is 3)who has the richest data.
`f) There is value in providing a simple photo submission solution.
`g) There is value in providing a photo storage solution.
`
`The Basic Service
`
`The basic service of Post and Post is to provide a single point of entry for
`photographs to be submitted to on-line real estate destinations. The basic service
`consists of a)a software product that easily facilitates the process of getting
`photos into an enterprise system, either on a local, regional or national level and
`b )an efficient photo storage service for the enterprise system.
`
`PictureWorks has secured very preliminary validation of both the primary
`assumptions and the need for a Prepare and Post product. We are in negotiation
`with Pacific Union to deliver the Prepare and Post solution. HomeShark would
`license the system today if it was available. RE/MAX, Better Homes and Gardens
`and Cyberhomes have all expressed high interest in the Prepare and Post
`solution today.
`
`Value Proposition
`
`The basic service of the proposed Prepare and Post business does not exist
`today. The value proposition is outlined in the following examples.
`
`a) When a Realtor wants to sign up for HomeShark's enhanced listing service to
`submit additional property data and photos to add value to their business, it is
`difficult to get the photo(s) into the system from the Realtor's PC. The Realtor
`either a)sends labeled photo prints via regular mail to HomeShark where the
`
`4
`
`PictureWorks Confidential
`
`8/23/1998
`
`CONFIDENTIAL
`
`SUM M IT6-00001689
`
`Exhibit 2034
`Apple Inc. and Twitter, Inc. v. Summit 6 LLC
`IPR2015-00685, Summit 6 LLC
`
`

`
`photo is then scanned and matched with the other listing data or, 2)prepares
`the digital photo to meet HomeShark's digital submission requirements and
`attempts to e-mail or FTP the photo for inclusion with the new listing data.
`Value Proposition: Eliminates barriers to entry that are error-prone, time
`consuming and confusing and frustrating. Significantly increases
`HomeShark's ability to offer successful enhanced listing services to Realtors,
`which is core to their business model ...
`b) In another example, the same steps must be followed if a Coldwell Banker
`Realtor wants to submit photos into the Coldwell Banker listing service. Value
`Proposition: Eliminates barriers to entry that are error-prone, time consuming
`and confusing and frustrating. Significantly increases HomeShark's ability to
`offer successful enhanced listing services to Realtors, which is core to their
`business model ...
`
`Pricing - Basic Service
`
`a) An engineering and maintenance fee is paid to PictureWorks by the customer
`to tailor Prepare and Post to the specific enterprise environment.
`b) A per seat license fee is paid to PictureWorks by the customer to use Prepare
`and Post and for PictureWorks to manage and store the photo data, or a flat
`yearly license fee can be collected. In this pricing scenario, PictureWorks
`manages the servers that store and serve the data.
`c) A per seat license fee is paid to PictureWorks by the customer for use of
`Prepare and Post, or a flat yearly license fee can be collected. In this pricing
`scenario, the customer manages the servers that store and serve the data.
`
`Target Customers
`
`Prepare and Post is aimed squarely at companies in real estate whose mission
`critical needs include access to photographic data within on-line environments.
`These can be Internet, Intranet or Extranet-based environments. This customer
`needs a photo submission system that transparently and automatically prepares
`and submits photos into their enterprise system. This customer may or may not
`also see value in PictureWorks storing and serving the photo data.
`
`Current opportunities identified within real estate are with web sites such as real
`estate franchise sites (both public and private), listing consolidation sites, and
`regional sites.
`
`Unknown opportunities may exist with MLS's, web site service companies for real
`estate and real estate appraisal companies.
`
`Enhanced Services and Related Pricing
`
`Additional upgrades and services can be offered to add value to the base service
`and provide a source for additional revenue. Some possibilities are:
`
`5
`
`PictureWorks Confidential
`
`8/23/1998
`
`CONFIDENTIAL
`
`SUM M IT6-00001690
`
`Exhibit 2034
`Apple Inc. and Twitter, Inc. v. Summit 6 LLC
`IPR2015-00685, Summit 6 LLC
`
`

`
`a) Providing customer lead generation and follow-up mechanism. Offer NetCard
`as a way for consumers to send photos of prospective homes to
`family/friends. Offer NetCard as way for sites to entice Realtors to use the
`site's services. Offer NetCard as an in-house communication tool for referrals,
`announcements, and other company communique. Pricing: incremental fee
`based on number of NetCards sent, or flat fee for unlimited use, or etc.
`b) Providing ability to automatically create rich photo content. Add stitching and
`slide show making as upgrades to basic system. Pricing: incremental fee
`based on use license plus seat usage, or some combination with flat fee for
`unlimited use.
`c) Providing enhanced listing pages. May be of value to small sites.
`PictureWorks dynamically generates enhanced listing page when request is
`sent from server for the data. Pricing: incremental fee based on license to use
`technology, possibly additional fees based on complexity of matching to
`property data.
`
`Conclusions
`
`The Enterprise Group has determined that the above two business opportunities
`may offer PictureWorks long term sources for substantial incremental revenue
`into the company as well as a substantial shift in the way the company's
`valuation is determined. To this end, we have contracted the services of R.B.
`Webber and Company to focus on further validating the high level strategies and
`underpinning assumptions.
`
`Our assumption is that Prepare and Post will continue as a product and service
`offering the company adds to its arsenal for revenue generation. Both business
`opportunities are mutually exclusive of each other, however Prepare and Post
`can serve as a viable value add to the distribution business while generating its
`own revenue.
`
`Variations of the distribution business opportunity will also be addressed. For
`example, in the model discussed in this document it assumed the database
`would include both property data and related photo data. However, we will also
`validate a variation on the model where the database includes only the property
`photos for both currently listed properties and sold properties.
`
`###
`
`6
`
`PictureWorks Confidential
`
`8/23/1998
`
`CONFIDENTIAL
`
`SUMMIT6-00001691
`
`Exhibit 2034
`Apple Inc. and Twitter, Inc. v. Summit 6 LLC
`IPR2015-00685, Summit 6 LLC