Book Number: ________
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`SWIFTSURE CAPITAL LLC
`AdMission
`
`
`
`_________________________________________________________
`
`C o n fi d e n t i a l I n f o r m a t i o n M e m o r a n d u m
`_________________________________________________________
`
`
`
`
`
`
`C o n fi d e n t i a l I n f o r m a t i o n :
`All persons who receive this Confidential Information Memorandum (“Memorandum”) agree that they will hold the
`contents of this Memorandum and all enclosures and related documents in the strictest confidence. Recipients of this
`Memorandum agree that they will not copy, reproduce or distribute to others this Memorandum or enclosures or related
`documents in whole or in part, or utilize the contents hereof or thereof for any other purpose other than to evaluate the
`Transaction described herein, and will return this Memorandum and any enclosures and related documents promptly at
`the request of Swiftsure Capital LLC (“Swiftsure”).
`
`
`
`
`
`
`
`
`
`
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`

`
`
`
`The information contained in this memorandum was obtained from the management of the AdMission unit of IPIX
`Corporation and other sources. Any estimates and projections contained herein have been prepared by the management
`of the Company and involve significant elements of subjective judgment and analysis, which may or may not be correct.
`Swiftsure not make any representation or warranty, expressed or implied, as to the accuracy or completeness of the
`information contained in this memorandum, and nothing contained herein is, or shall be relied upon as, a promise or
`representation, whether as to the past or the future.
`
`THE INFORMATION CONTAINED HEREIN HAS BEEN PREPARED TO ASSIST INTERESTED PARTIES IN MAKING THEIR OWN EVALUATION
`OF ADMISSION AND DOES NOT PURPORT TO CONTAIN ALL OF THE INFORMATION THAT AN INTERESTED PARTY MAY DESIRE. IN ALL
`CASES, INTERESTED PARTIES SHOULD CONDUCT THEIR OWN INVESTIGATION AND ANALYSIS OF IPIX ADMISSION, ITS ASSETS,
`FINANCIAL CONDITION AND PROSPECTS AND OF THE DATA SET FORTH IN THIS MEMORANDUM. SWIFTSURE DOES NOT MAKE ANY
`REPRESENTATION OR WARRANTY AS TO THE ACCURACY OR COMPLETENESS OF THIS MEMORANDUM OR THE INFORMATION
`CONTAINED HEREIN, OR FOR ANY OMISSIONS FROM, THIS MEMORANDUM OR ANY OTHER WRITTEN OR ORAL COMMUNICATIONS
`TRANSMITTED TO THE RECIPIENT IN THE COURSE OF ITS EVALUATION OF IPIX ADMISSION.
` ONLY THOSE PARTICULAR
`REPRESENTATIONS AND WARRANTIES, IF ANY, WHICH MAY BE MADE TO A PARTY IN A DEFINITIVE WRITTEN AGREEMENT
`REGARDING A TRANSACT ION INVOLVING IPIX ADMISSION, WHEN, AS AND IF EXECUTED, AND SUBJECT TO SUCH LIMITATIONS AND
`RESTRICTIONS AS MAY BE SPECIFIED THEREIN, WILL HAVE ANY LEGAL EFFECT. THE DELIVERY OF THIS MEMORANDUM SHALL NOT
`UNDER ANY CIRCUMSTANCES IMPLY THAT THE INFORMATION HEREIN IS CORRECT AS OF ANY DATE SUBSEQUENT TO THE DATE
`HEREOF.
`
`NEITHER THE RECEIPT OF THIS MEMORANDUM BY ANY PERSON NOR ANY INFORMATION CONTAINED HEREIN OR SUPPLIED
`HEREWITH OR SUBSEQUENTLY COMMUNICATED TO ANY PERSON IN CONNECTION WITH A PROPOSED TRANSACTION WITH IPIX IS OR
`IS TO BE TAKEN AS CONSTITUTING THE GIVING OF INVESTMENT ADVICE OR THE GIVING OF LEGAL, BUSINESS OR TAX ADVICE TO
`ANY SUCH PERSON. EACH SUCH PERSON SHOULD MAKE AN INDEPENDENT ASSESSMENT OF THE MERITS OF PURSUING A
`TRANSACTION INVOLVING THE COMPANY AND SHOULD CONSULT SUCH PERSON’S OWN PROFESSIONAL ADVISORS.
`
`THIS MEMORANDUM INCLUDES CERTAIN STATEMENTS, ESTIMATES AND PROJECTIONS PROVIDED BY IPIX ADMISSION WITH RESPECT
`TO THE ANTICIPATED FUTURE PERFORMANCE OF THE COMPANY AND OTHER FORWARD LOOKING STATEMENTS WITHIN THE
`MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF
`1934, AS AMENDED INCLUDING THE FINANCIAL PROJECTIONS IN SECTION VI OF THIS MEMORANDUM. SUCH STATEMENTS,
`ESTIMATES AND PROJECTIONS REFLECT VARIOUS ASSUMPTIONS BY THE COMPANY CONCERNING ANTICIPATED RESULTS AND ARE
`SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC AND COMPETITIVE UNCERTAINTIES AND CONTINGENCIES, MANY OF WHICH ARE
`BEYOND THE CONTROL OF THE COMPANY. ACCORDINGLY, THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS, ESTIMATES
`AND PROJECTIONS WILL BE REALIZED. THE FORECAST AND ACTUAL RESULTS WILL LIKELY VARY, AND THOSE VARIATIONS MAY BE
`MATERIAL. IPIX ADMISSION AND SWIFTSURE DO NOT MAKE ANY REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF
`SUCH STATEMENTS, ESTIMATES AND PROJECTIONS OR THAT ANY FORECASTS WILL BE ACHIEVED.
`
`BY ACCEPTING THIS MEMORANDUM, THE RECIPIENT ACKNOWLEDGES AND AGREES THAT (i) ALL OF THE INFORMATION CONTAINED
`HEREIN IS CONFIDENTIAL; (ii) THE RECIPIENT WILL NOT DISTRIBUTE OR REPRODUCE THIS MEMORANDUM, IN WHOLE OR IN PART; (iii)
`IF THE RECIPIENT DOES NOT WISH TO PURSUE THIS MATTER, OR AT THE REQUEST OF SWIFTSURE, THE RECIPIENT WILL RETURN THIS
`MEMORANDUM AS SOON AS PRACTICABLE, TOGET HER WITH ANY OTHER MATERIAL RELATING TO IPIX ADMISSION WHICH THE
`RECIPIENT MAY HAVE RECEIVED FROM SWIFTSURE OR IPIX ADMISSION; (iv) ANY PROPOSED ACTIONS BY THE RECIPIENT WHICH MAY
`BE INCONSISTENT IN ANY RESPECT WITH THE FOREGOING WILL REQUIRE THE PRIOR WRITTEN CONSENT OF SWIFTSURE.
`
`
`
`
`
`
`
`
`
` Confidential Material
`
`ALL INQUIRIES AND REQUESTS FOR FURTHER INFORMATION SHOULD BE DIRECTED TO ONE OF THE FOLLOWING:
`
`Scott Wilson or Peter Yoakum
`Swiftsure Capital
`1326 Fifth Avenue, Suite 710
`Seattle, WA 98101
`Telephone: (206) 903-1000
`Fax: (206) 903-1001
`
`
`
`
`
`
`Scott Wilson
`swilson@swiftsurecap.com
`
`
`Peter Yoakum
`pyoakum@swiftsurecap.com
`
`
`
`
`
`
`
`AdVenture CIM final 12.13.04
`
`12/13/2004 2:13:56 PM
`
`
`
`
`
`
`
`
`
`2
`
`
`
`
`
`
`
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`

`
`
`
`T a bl e of C o n t e n t s
`
`
`
` Confidential Material
`
`I.
`
`II.
`
`III.
`
`I V .
`
`V .
`
`V I.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`E x e c u t i v e S u m m a r y
`Key Highlights
`Summary Pro Forma Financials
`Pro Forma Capitalization Table
`Pro Forma Balance Sheet
`Use of Proceeds
`Risk Factors
`
`I n d u s t r y O v e r v i e w
`Market Dynamics
`Opportunity
`
`B u s i n e s s D e s c ri p t i o n
`IPIX AdMission History
`Products & Services
`Markets
`Channels
`Organization
`Facilities
`Legal
`Intellectual Property
`
`T h e O p p o r t u n i t y
`Addressable Market
`Newspaper Classifieds Market
`Yellow Pages Market
`Competition
`
`F i n a n c i a l s
`Discussion of Operations
`Projected Financials
`
`E x hi b i t s
`1 – Letter of Intent
`2 – Independent Technology Report
`3 – Independent Sector Analysis
`
`
`
`12/13/2004 2:13:56 PM
`
`
`
`
`
`
`
`
`
`3
`
`
`
`
`
`
`
`
`
`AdVenture CIM final 12.13.04
`
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`

`
`
` Confidential Material
`
`
`
`
` I. E x e c u tiv e S u m m a ry
`
`Objective. Management buyout of business unit from a publicly-held parent company.
`
`Funding. $3.5 million in equity funding
`
`Business.
`
`ß Web-based enhanced ad creation and display tools that enable publishers to accelerate and monetize
`the migration of individual & small business advertisers online
`ß Client licenses its technology as an ASP service to content aggregators, newspaper classifieds,
`yellow pages and local search publishers
`ß Publishers generate incremental revenue with 70-85% gross margins by up-selling Client’s products
`as a premium advertisement enhancement, online and in print
`ß Reoccurring revenue streams of monthly transaction fees based on # ads sold, Client retains 15-30%
`of transaction value
`ß 75% of 2005 revenues expected to be generated from customers under contract today
`ß First to market with significant barriers to entry for competition
`ß Dominant channel position in newspapers and early entry into yellow page market
`
`Market Opportunity.
`ß Market Trend. Local SME advertising is migrating from print to online; online U.S. revenues will
`grow 2.5 times from $8.4 billion in 2004 to $21.3 billion in 2008, print will remain flat
`ß New Competition. New online entrants (eBay, Google, Yahoo) are placing traditional print
`publishers (newspaper classifieds, yellow pages) under attack for local SME advertising dollars
`ß Defense. Traditional publishers need to offer better, easier tools for SME’s to create and display ads
`online, but lack expertise to do so
`ß Solution. Client sees an opportunity to provide traditional publishers with a world-class online ad
`creation & display capability today
`ß Addressable Market. Client estimates its addressable market will grow from $1.2 million in 2004
`to $45.6 million in 2008
`ß Market Share. Client expects to achieve over 40% market share by 2008
`
`Intellectual Property. Client owns broad-based patents on technology and processes related to the
`collection, transformation and distribution of media on the Internet.
`
`
`
`
`
`
`
`Exit Strategy. Strategic sale to a newspaper group, yellow pages or local search provider
`The Transaction: Swiftsure is sponsoring a management buyout of the IPIX AdMission assets and on
`November 24, 2004 Swiftsure and IPIX signed a letter of intent outlining the terms of the proposed
`transaction, which the parties intend to close prior to December 31, 2004. A new company, AdMission, Inc.,
`has been formed and all related IPIX AdMission assets will be transferred or licensed to the new entity,
`
`
`
`12/13/2004 2:13:56 PM
`
`
`
`
`
`
`
`
`
`4
`
`
`
`
`
`
`
`
`
`AdVenture CIM final 12.13.04
`
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`

`
`
`
`including customer contracts, employees, equipment, facilities, vendor relationships and intellectual
`property.
`
`
`
` Confidential Material
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Summary Pro Forma Financial Information
`
`
`Figure 1 - Income Statement
`
`($US)
`Revenues
` Newspapers
` Directories & Yellow Pages
` Aggregators
`
`Directional Advertising
`
` Other
`Total Revenues
`
`Cost of Revenues
`
`2003
`
`2004
`
`2005
`
`Annual
`
`2006
`Projected
`
`2007
`
`2008
`
`72,579$
`
`230,899
`
`
`660,529
`
`323,156$
`
`
`38,536
`
`543,162
`
`1,554,810$
`
`
`575,696
`
`775,800
`
`3,452,152$
`
`
`3,003,567
`
`823,800
`
`5,471,572$
`
`
`6,731,450
`
`823,800
`
`7,961,214$
`
`
`11,257,400
`
`823,800
`
`964,007
`
`25,372,826
`
`
`26,336,833
`
`904,855
`
`
`257,612
`
`1,162,467
`
`2,906,306
`
`
`181,108
`
`3,087,414
`
`7,279,519
`
`
`181,108
`
`7,460,627
`
`13,026,822
`
`
`181,108
`
`13,207,929
`
`20,042,414
`
`
`181,108
`
`20,223,522
`
`Gross Profit
`Gross Profit
`
`6,698,944
`
`19,637,889
`
`75%
`
`2,307,365
`
`
`(1,144,899)
`-98%
`
`1,185,945
`
`
`1,901,469
`62%
`
`1,492,125
`
`
`5,968,501
`80%
`
`2,641,586
`
`10,566,344
`
`80%
`
`4,044,704
`
`
`16,178,817
`80%
`
`Operating Expenses
` Sales & Marketing
` Research & Development
` General & Administrative
`Total Operating Expenses
`
`3,985,000
`
`
`3,157,000
`
`-
`
`7,142,000
`
`2,058,551
`
`
`1,837,232
`-
`
`
`3,895,783
`
`1,962,967
`
`
`1,250,197
`
`447,971
`
`3,661,135
`
`2,618,379
`
`
`1,625,062
`
`596,114
`
`4,839,554
`
`3,283,564
`
`
`2,361,238
`
`755,576
`
`6,400,379
`
`4,853,645
`
`
`3,499,257
`
`1,213,411
`
`9,566,313
`
`6,612,504
`
`Operating Profit
`
`
`
`12,495,889
`
`
`
`(5,040,681)
`
`
`
`(1,759,666)
`
`
`
`1,128,947
`
`
`
`4,165,964
`
`
`
` Interest Expenses
`
`Pre-tax Income
`Income Taxes @40%
`Net Income
`
`-
`
`12,495,889
`
`
`-
`
`
`(5,040,681)
`
`-
`
`
`(1,759,666)
`
`-
`
`1,128,947
`
`
`-
`
`4,165,964
`
`
`-
`
`
`6,612,504
`
`
`
`12,495,889
`
`
`
`(5,040,681)
`
`
`
`(1,759,666)
`
`
`
`1,128,947
`
`
`
`4,165,964
`
`
`
`6,612,504
`
` Depreciation & Amortization
`EBITDA (Cash Flow)
`
`
`
`
`2,971,038
`
`15,466,927
`
`
`674,474
`
`
`(4,366,208)
`
`488,200
`
`
`(1,271,466)
`
`77,478
`
`1,206,425
`
`
`64,353
`
`4,230,317
`
`
`69,978
`
`
`6,682,482
`
`
`
`12/13/2004 2:13:56 PM
`
`
`
`
`
`
`
`
`
`5
`
`
`
`
`
`
`
`
`
`AdVenture CIM final 12.13.04
`
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`

`Confidential Material
`
`Pro Forma Capitalization Table
`
`
`
`
`
` I
`
`II1
`
`ll 11
`
`] i g1].]]:II-J
`IIIHIIIIIIIIH1|-11111]i
`”fifiifii
`
`mm
`
`12/ 13/2004 2:13 :56 PM
`
`6
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`
`AdVeuture CIM final 12.13.04
`
`Google Inc. v. Summit 6 LLC
`IPR2015-00806. Summit 6 LLC
`
`

`

`Confidential Material
`
`Pro Forma Balance Sheet
`
`
`
`Use of Proceeds
`
`Risk Factors
`
`——— D
`
`ependent on customer for roll out: Although the Company assists its customers with integration of the AdMission
`platform and training of its customers sales staff, the Company's ability to realize revenue is dependent on its
`customers ability to launch and roll out the AdMission services. No assurance can be given that its customers will be
`effective in launching and marketing AdMission service or that they do so in the timeframe forecast by the Company.
`
`12/13/2004 2:13 :56 PM
`
`Exhibit 2020 PROTECTIVE ORDER MATERLAL
`
`AdVenture CIM final 12.13.04
`
`Googlc Inc. v. Summit 6 LLC
`IPR2015-00806. Summit 6 LLC
`
`.,
`/
`
`

`

`
`
` Confidential Material
`
`
`
`
`Yellow Pages: The Company expects significant customer acceptance for its products from the Yellow Page market.
`The majority of these companies are offshoots or subsidiaries of the Regional Bell Operating Companies (RBOCs) and
`have traditionally been slow embrace new technology and methodologies. No assurance can be given that they will
`adopt the Company’s AdMission services.
`
`
`Lack of financial Strength: The Company will begin with a cash balance of approximately $3,500,000. No assurance
`can be given that the company will have sufficient financial resources to support operations long enough to achieve
`positive cash flow.
`
`No liquidity: There is no public market for the Company’s securities and there can be no assurance that there will be
`an opportunity for a shareholder to sell the securities; therefore, the securities may have to be held for an indefinite
`period of time.
`
`12/13/2004 2:13:56 PM
`
`
`
`
`
`
`
`
`
`8
`
`
`
`
`
`
`
`
`
`AdVenture CIM final 12.13.04
`
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`

`Confidential Material
`
`||.
`
`Industry Overview
`
`Market Dynamics
`Management is focused on providing ASP services to publishers in the “directional advertising” market.
`Directional advertising directs buyers to sellers when they’re ready to buy, so there is already an established
`need. Examples include publishers of newspaper classified ads, yellow pages ads, paid search engines,
`online auctions and other paid directories. Industry experts expect the total directional ad market is projected
`to generate revenue of $38 .0B in 2004.
`
`Traditionally a Print Market. Directional advertising has traditionally been a print product, Where ads are
`sourced by a publisher’s sales force, created by publisher’s in-house production staff (i.e. together, a “full-
`serve” offering) and placed into a static print product such as the classifieds section in a physical newspaper
`or a display ad in the local Yellow Pages book for the consumer to read The newspaper classifieds and
`yellow pages print markets collectively are projected to generate $29.63 in revenue, or 78% of total, for
`2004 (see Figure 4).
`
`
`
`Fi 4 - 2004 US. Directional Advertisin Market
`
`Onllne
`
`Print—Consumer
`
`
`
`Print
`Publishers
`$29.68
`
`
`
`
`
`Aggregatm 5 Newspaper
`|yp
`.
`hearth
`
`,surtion‘.‘
`\
`_
`
`
`
`Online
`Publishers
`
`
`
`38.4 B
`
`Full Serve— Advertiser — SelfServe
`
`Source: 'I'heKelseyGrmxpanddherindustryexpa’ts.
`
`Growth is Online . The arrival of the Internet has brought about several fundamental shifts in the directional
`ad market, placing traditional print publishers and their revenue under attack. First, companies such as
`Google, Overture and eBay are leveraging the Internet to deliver a better consumer experience that offers
`extended search functionality, broader listing inventory and deeper content to facilitate consumers’ decision
`making processes. As a result, consumers are increasingly moving online for their searches and, ultimately,
`purchases of goods and services. Second, these online companies are enabling basic ad creation and
`placement to occur online and in a “self-serve” environment, with advertisers themselves using webbased
`tools to create and publish their ads in realtime at reduced rates. This online segment will generate
`approximately $8 .4B, or 22% of total ads, in 2004 (see Figure 4).
`
`12113/2004 2 :13 :56 PM
`
`9
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`
`AdVenture CIM final 12.13.04
`
`Google Inc. v. Summit 6 LLC
`IPR2015-00806. Summit 6 LLC
`
`

`

`Growth in the total directional ad market will be fueled primarily by the online segment, with online
`directional advertising growing to $21 .38 or 40% of the total $53.5B directional advertising market by 2008.
`This leaves the print side with virtually flat growth during the same period and a dramatically reduced market
`share at only 60% of total products (see Figure 5).
`
`Figge 5 - 2008 US. Directional Advertising Market
`
`Confidential Material
`
`4315‘:
`
`Print
`
`Pub'iShers
`
`$32.2B
`
`
`
`2 E
`
`E3
`
`g
`I
`
`E.
`a:
`
`
`/ Sm”
`Online
`$21.3 B
`
`Aggzegmors
`
`N
`
`
`
`W
`
`Amman?-
`
`WP
`
`Publishers
`
`
`Full Serve
`
`Source: 'I'heKelsemeupandotherindustryexper-ts.
`
`Opportunity
`
`Traditional Publishers Need to Change. The market dynamics are forcing traditional publishers to change
`in order to compete in both the online and print worlds. Many of these publishers have responded by
`building online platforms that simply replicate their existing print ad inventory and leverage a small portion
`of the Intemet’s benefits such as text search so consumers can find the ads. For example, most newspapers
`have launched online classified services that mirror their print products, and virtually all of the yellow page
`publishers have launched an online directory version of their print directory. To a large extent, these online
`platforms - both for traditional publishers and their newer online competitors - do not yet leverage the full
`capabilities of the Internet medium when it comes to presenting ads in an engaging, visually-compelling,
`professional manner.
`Instead, ads are predominantly static, text—based and do little to create a consumer
`“call—to—action.”
`
`As consumers increasingly move online, advertisers are forced to find easy and costeffective ways to market
`their products and services online as well, all within an ROI that makes sense. Management believes that
`local advertising for goods and services, largely purchased by small to medium enterprises (SME’s),
`is
`lagging the consumer movement, and creating a gap in the supply and demand of directional advertising.
`
`Per industry analysts The Kelsey Group, there are over 10 million widely distributed SME’s in the US.
`today and their advertising budgets average $6,000 per year. SME’s do the majority of their business within a
`50 mile radius of their location and over 70% of all SME’s do not have or do not maintain a website. The
`
`challenge for publishers is to get these local businesses with limited online exposure or technical expertise to
`advertise online, in a manner that fully reflects the broadness and diversity of their offerings, and to do all
`this in a cost-effective manner.
`
`12/l3/2004 2 :13 :56 PM
`
`10
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`
`AdVenture CIM final 12.13.04
`
`Google Inc. v. Summit 6 LLC
`IPR2015-00806. Summit 6 LLC
`
`

`

`
`
`
`
`
`SME’s Need Better Online Tools. There is an increasing recognition that traditional publishers must add
`compelling, easy-to-use, online tools for local advertisers to reach qualified leads. SME’s need to easily
`create, display and manage professional-looking online ads so that they can compete effectively against
`larger, national businesses with the expertise and resources to manage professional online ad campaigns.
`There also is a need to help bridge the transition from print to web, as both platforms have a place in a local
`business advertising strategy.
`
` Confidential Material
`
`These online tools must:
`• Make the ad creation process simple, cost-effective, flexible and easily updated;
`• Improve the relevancy of local search results;
`• Not be dependent on websites and be complementary to websites where they do exist;
`• Showcase goods and services and create calls-to-action using media-rich presentations with photos,
`logos, coupons, virtual tours and more to attract consumer attention;
`• Create brand awareness for the business;
`• Offer multiple ways to contact the seller, whether via phone, fax, email, maps, driving directions or
`other methods; and
`• Offer performance tracking.
`
`With a lack of expertise in developing web services and a continued focus on print products, traditional
`publishers have shown a proclivity toward partnering with third-party technology providers in an effort to
`accelerate their time to market for online services.
`
`Management sees an opportunity to step in and provide traditional publishers (newspaper classifieds and
`yellow pages) with web-based tools that enable their advertiser base (primarily SME’s and certain private
`party sellers) to create, distribute and manage visually enhanced ads online.
`
`12/13/2004 2:13:56 PM
`
`
`
`
`
`
`
`
`
`11
`
`
`
`
`
`
`
`
`
`AdVenture CIM final 12.13.04
`
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`

`
`
` Confidential Material
`
`
`
`
`III. B u sin e s s D e s c rip tio n
`
`I P I X A d M i s s i o n H i s t o r y
`
`The IPIX AdMission division started in 2001 by licensing certain of its patented image management
`technology to online auction and online classified advertising platforms to drive commercial transactions,
`including eBay and Homestore. IPIX AdMission expanded its operations significantly during the next few
`years to support the strong growth from eBay, its largest customer. IPIX AdMission’s technology was a key
`driver behind the increased adoption of enhanced photo ads within eBay, growing from 8% of all ads when
`services began for eBay to over 80% by late 2003, producing material revenue for both parties.
`Starting in 2003, in an effort to diversify its revenue base, IPIX AdMission began targeting publishers of
`newspaper classifieds as new technology licensing opportunities. IPIX AdMission secured several flagship
`online newspaper classifieds websites, including Recycler.com, Cars.com, Seattle Times and Atlanta Journal
`Constitution. IPIX AdMission also integrated its technology into four newspaper system vendor platforms to
`facilitate future licensing agreements with newspapers and to prevent the incumbent system vendors from
`blocking channel access to AdMission.
`
`During 2003, IPIX AdMission amended its licensing agreement with eBay and received
`.
` and an additional
`The core value and significant scale of the service offered to eBay had grown to make it impractical to
`continue as an outsourced solution, and the parties agreed to a licensing and transition agreement completed
`November 2003. IPIX AdMission dramatically reduced its operations staff in Q4 2003 but continued to
`expand its image management platform into a full suite of online ad creation and display tools for directional
`ad publishers.
`Throughout 2004, AdMission Management has continued its focus on technology licensing opportunities in
`the newspaper classifieds market, securing the majority of industry publishing groups, including Knight-
`Ridder, Tribune Corporation, Washington Post, Boston Globe, Los Angeles Times, New York Times and
`several smaller publishers. In aggregate, these publishers represent dozens of individual newspapers, and
`Management is in the process of rolling out services with these corporate-owned entities. Management has
`also secured additional relationships with newspaper system vendors, who represent dozens of additional
`integration opportunities.
`During 2004, Management also expanded its market focus to include online yellow pages publishers. It
`launched its first customer; UK’s Yell.com, in April 2004 and continues to move toward contract stage with
`several of the U.S. yellow pages publishing market leaders.
`
`P r o d u c t s a n d S e r v i c e s
`
`AdMission Overview
`IPIX AdMission offers a hosted media platform, called “AdMission”, that provides local advertisers with the
`means to create rich, visual ads showcasing their businesses, products and services, resulting in more
`relevant searches for consumers and qualified leads for advertisers.
`
`IPIX AdMission licenses its AdMission Platform to directional ad publishers such as newspaper classifieds
`and yellow pages, who are looking to compete effectively against new online competitors (e.g. eBay and
`Google) by offering their users, both advertisers and consumers, a better user experience. Publishers have
`also found AdMission to be a powerful competitive advantage as it provides advertisers with one of the most
`effective online marketing solutions available anywhere.
`
`12/13/2004 2:13:56 PM
`
`
`
`
`
`
`
`
`
`12
`
`
`
`
`
`
`
`
`
`AdVenture CIM final 12.13.04
`
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`

`
`
` Confidential Material
`
`
`
`
`The Admission Platform is either licensed to publishers as a custom integrated solution bundling AdMission
`technology components or as fully featured products such as AdMission Classifieds™ and AdMission
`Directories™.
`
`Core Technology: AdMission Media Platform
`The AdMission Media Platform is one of the most successful technologies implemented on a large scale for
`managing third-party media across the Internet. It has enabled millions of advertisers and consumers to
`successfully conclude commercial transactions far more effectively by better communicating the value of
`advertised goods and services through accompanying media.
`
`One of the greatest barriers to online ad publishing is the confusion and complexity associated with
`collecting and preparing visual media, which comes in a variety of formats, sizes and dimensions from a
`disparate group of users and platforms. Rich-media transactions are orders of magnitude larger than typical
`text-based transactions, making it more difficult for publishers to simply adapt their existing platforms to
`build rich-media solutions on their own.
`
`AdMission removes this complexity and sets the standard for ease of use. As a result, publishers offering
`AdMission begin generating new revenue steams with margins in excess of 70% and obtain high-end
`customer acceptance and use.
`
`
`
`12/13/2004 2:13:56 PM
`
`
`
`
`
`
`
`
`
`13
`
`
`
`
`
`
`
`
`
`AdVenture CIM final 12.13.04
`
`
`
`Figure 6 – AdMission Platform
`
`
`
`
`
`
`
`
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`

`
`
` Confidential Material
`
`
`
`
`
`Features
`• Hosted solution for collecting, preparing and distributing rich ad content
`• Complete set of media upload, management, editing, and transform capabilities including:
`o Photo tools for preview, crop, rotate, watermarking, and enhancement
`o Server-side media edits, no media re-uploading required
`o On demand media transformations into multiple standardized formats and outputs for application
`flexibility
`o Pre-processed media prior to upload, reducing bandwidth consumption and upload time by 90%
`o Media optimization based on target usage for high quality and high performance
`• Serves media directly to users from links embedded in destination sites
`• Media transfer options for backend printing and other uses
`• Documented Application Programming Interfaces (API’s) for customization into web applications
`• Access to usage data for inclusion in ad performance reports
`
`Benefits
`• Accepts user-supplied media from anyone, anywhere, for ad creation in real-time, online or in print
`• Leverages AdMission’s extensive experience enhancing directional advertising with patented technology
`Integrates easily and quickly into existing workflows, applications and websites
`•
`• Eliminates complexity of preparing media with easy-to-use tools and automated processing
`• Configurable and scalable to meet diverse publishing requirements
`• Hosted ASP solution accelerates time-to-market, with no capital outlay, nothing to monitor or maintain
`
`AdMission Classifieds
`AdMission Classifieds is a hosted solution for newspaper publishers to generate new revenue by enabling
`their advertisers to include photos of their items both online and in print ads.
`
`Newspapers up sell AdMission photo ads to advertisers via their website or their existing call centers. After
`purchase, advertisers are directed to a page on the publisher’s website, where they are guided through three
`simple steps to submit their photos and provide expanded descriptions for online publication.
`
`Implementation of the service is quick and easy because it is completely hosted and managed by AdMission,
`while appearing directly within the publisher’s website. Publishers may choose to integrate the product
`directly or go through a publishing system vendor who has already integrated AdMission with their classified
`software application.
`
`Consumers are presented with small photos and a camera icon in the printed ads, which directs them online
`to see more photos. They are met online with a slideshow full of large color photos of the items for sale.
`Many print readers are introduced to the newspaper’s website for the first time through this process, and end
`up discovering the value of using the online and print media together.
`
`AdMission Classifieds is sold on a transaction-based model of shared risk and reward. Pricing is based on
`“photo ad” bundles of 1-, 3-, 5- and 20-image packages with discounts for volume commitments and
`monthly minimums for individual papers.
`
`
`12/13/2004 2:13:56 PM
`
`
`
`
`
`
`
`
`
`14
`
`
`
`
`
`
`
`
`
`AdVenture CIM final 12.13.04
`
`Exhibit 2020 PROTECTIVE ORDER MATERIAL
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`

`
`
`
`
`
`
` Confidential Material
`
`Figure 7 – AdMission Classifieds
`
`
`
`
`Features
`• Simple template-driven ad creation with WYSIWYG previews
`• Patented technology reduces upload time by up to 90%
`• Automated image processing manages file formats, resolution, file size and color space per
`publication specs and optimized for intended use, both online and in print
`• Automatically delivers an email confirmation, cutting publishing costs and streamlining processes
`• Displays photos in an interactive viewer on the same page as the classified listing search results
`• Administrative tool for photo ad approval
`
`Benefits to Publishers
`• Generates new revenue with enhanced photo ad capability
`• Leverages existing call center and online ad entry solutions
`• Drives content into both online and print version automatically
`• Allows publishers to support specialized promotions such as online auctions
`• Operates as hosted solution and requires nothing to install or maintain.
`• Distributes content to partners such as ad alliances, ad networks and families of publications
`• Supports consistent, continuous improvement and scalability
`• Delivers compelling reason for readers to use print and online together
`• Encourages new readership with visual shopping experience
`
`Benefits to Advertisers
`• Simple, fast and intuitive tools designed for novices
`•