October 20, 1998
`
`Mr. Gary Dillabough
`eBay Inc.
`2005 Hamilton Avenue
`Suite 350
`San Jose, CA 95125
`
`Dear Gary,
`
`Terry Anderson and I enjoyed meeting you on Friday. We are excited about the
`opportunity to make adding pictures to eBay easy and accessible for everyone.
`
`Our immediate goals are the following:
`1. Make it easy for sellers to put pictures into their ads on eBay
`2. Enable all eBay sellers to put pictures in their ads, even if they don't have a digital
`camera or scanner
`3. Host all of the pictures that are in eBay ads
`4. Extend eBay's reach by integrating eBay with software that PictureWorks delivers to
`its OEM partners
`
`We will work closely with eBay to make sure the system is right by integrating what we
`have learned from our customer research and what eBay learns through researching its
`own user base.
`
`Please consider the attached proposal as a starting point for our discussions. Our intent is
`to address the needs we discussed Friday and to structure a solution for those needs.
`I will follow up with you tomorrow to get your feedback on the proposal and to decide what
`the next steps should be to carry our discussion forward.
`
`Sincerely,
`
`Scott Lewis
`Manager, Product Strategy
`PictureWorks Technology, Inc.
`
`Photo Acquisition and Distribution System for
`eBay
`
`Executive Summary
`
`eBay: current situation
`
`eBay has become established as the on line trading community. From interactions with millions of
`customers, eBay has identified the importance of providing its customers with simple ways to get
`photos into their ads. PictureWorks Technology, Inc. has the technology, experience, and relationships
`to provide a complete photo solution to eBay and its customers.
`
`CONFIDENTIAL
`
`SUMMIT6-00001955
`
`Exhibit 2049, Page 1
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`
`PictureWorks proposed services
`
`• Make it easy to get pictures into ads from within eBay's ad placement form
`•
`Process, store and serve all photos appearing in eBay auctions
`•
`Provide photo scanning service to eBay customers
`•
`Provide eBay customers with co-branded film processing mailers with special pricing
`•
`Integrate eBay into digital photo software to be bundled with digital cameras and scanners.
`•
`Provide special pricing on cameras, accessories and software to eBay customers
`
`Current Situation
`
`eBay background
`
`Founded in 1995, eBay has established itself as the online trading community. With an average of
`800,000 items available for sale on any given day and millions of dollars changing hands, eBay has set
`the benchmark for other web commerce efforts. From interactions with millions of customers, eBay has
`identified the importance of providing sellers with simple ways to get photos into their auctions. eBay
`has also recognized the need to extend their reach by developing relationships with digital camera
`manufacturers and photofinishers. PictureWorks Technology, Inc. has the technology, experience, and
`relationships to provide a complete photo solution to eBay and its customers.
`
`Photos in eBay: Seller issues
`
`Specialized hardware, software, skills, and services are currently required to add photos to eBay
`auctions including:
`• User must have a digital capture device
`• User must have imaging software
`• User must know how to reduce an image down to 25k and convert the file format.
`• User must have FTP tools and know how to use them to upload an image to a web site
`• User must have their own web site with personal storage space for storing their photos.
`• User must capture the exact URL to that image and insert it in eBay.
`
`This "chain of pain" prevents many eBay users from including photos of their items for sale. Since a
`photo is critical to the success of an auction, the difficult photo-insertion process is hurting eBay's
`customers' ability to sell.
`
`Photos in eBay: Buyer issues
`
`•
`
`Inconsistent presentation. Some ads have tiny photos that do not provide enough detail while
`others have huge photos that take too long to load.
`• Ads that require too much time to load can become a critical issue at the end of an auction as the
`user is reloading the page several times in quick succession to refresh bids.
`• Many ads do not have photos making it difficult and risky to bid on those items
`
`CONFIDENTIAL
`
`SUMMIT6-00001956
`
`Exhibit 2049, Page 2
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`
`Photos in eBay: eBay issues
`
`Inconsistent presentation reflects negatively on eBay
`•
`• Members look to eBay to provide additional products, service, and support
`• Need brand exposure in growth markets such as digital camera purchasers
`
`Opportunity & Objectives
`
`PictureWorks will offer photo solutions to all of eBay's market segments, from
`novice to experienced.
`
`1. Sellers with a digital camera or scanner
`
`Sellers filling out the ad form will find a checkbox next to the Include Picture line item. After clicking the
`option, they may then directly insert a picture from their computer into the form. The picture will be
`immediately displayed in the form. The user does not need to be concerned with formatting issues such
`as resizing. This happens automatically.
`
`Upon submitting the "sell item" form, the photo is immediately delivered to PictureWorks where it is
`processed and added to the PictureWorks photo server. Photos are logged by ad ID#.
`
`«insert Screenshot of UI»
`
`2. Sellers without a digital capture device
`
`Option 1: digital photo finishing to floppy disk
`
`PictureWorks will coordinate and manage a film processing program with one or more major
`photofinishers that will include custom co-branded photo-mailer envelopes. The program will allow
`eBay customers to mail off their film and receive prints as well as a floppy disk with digital versions of
`their images. They can then drag these images directly from the disk into the eBay ad form as
`described above. Existing eBay customers will be sent mailer envelopes for their convenience.
`
`<<insert picture of eBay mailer>>
`
`Option 2: online photo hosting
`
`As an alternative to delivering a floppy disk of photos, PictureWorks will host low-resolution copies of all
`processed images online. Users will be e-mailed information about how to get to their photos including
`a clickable link. Users who use this service can review a slide table of all of their images. By selecting
`one and clicking the "sell this item" button, they will be launched into the eBay "sell item" form with the
`selected photo already inserted.
`
`CONFIDENTIAL
`
`SUMMIT6-00001957
`
`Exhibit 2049, Page 3
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`
`Option 3: photo scanning service
`
`PictureWorks will provide eBay sellers with the option of sending in
`photographic prints for scanning. Pictures received by PictureWorks
`will be scanned and placed on the PictureWorks photo server. When
`the photo has been scanned, the seller will receive an email
`confirmation with a link to their image.Expose new hardware
`purchasers to eBay through OEM camera & scanner integration
`[Scott, this part should not be a header]
`
`PictureWorks has become established as a leader in the field of desktop imaging software. Digital
`cameras, scanners, color printers, and storage devices around the globe are enabled by PictureWorks
`software.
`
`PictureWorks hardware partners have traditionally included software with their devices focused on
`enhancement, card and calendar projects, and photoplay such as stretching and morphing people's
`faces. PictureWorks has identified a growing need to include software more geared toward helping
`people use the pictures they have captured, rather than just playing with them.
`
`PictureWorks' desktop application, Photo Workshop, meets these objectives. The application integrates
`the Web at its core, bringing the user a number of new and exciting ways to make use of their new
`digital capture device. PictureWorks will offer this application to our existing digital imaging hardware
`partners and new partners as well.
`
`PictureWorks will integrate eBay into this application as the exclusive personal trading community.
`PictureWorks' web imaging partners will include:
`
`•
`
`eBay auction service- submit photos of items you wish to sell in this 24/7 personal trading
`community
`
`• Reprint service- submit digital photos and have traditional photo prints made and delivered by
`mail
`
`• Photo novelty service- submit photos and have items created such as t-shirts, mugs, watches,
`etc.
`
`• Online photo album service- create online albums which can be shared with friends, family, and
`colleagues.
`
`• NetCard service- send electronic postcards with your pictures over the internet
`
`Benefits of integrating PictureWorks Picture Acquisition and
`Distribution System
`
`Benefits for Sellers
`
`• Simple to include photos with ads
`• Addresses sellers with and without digital capability
`•
`Increases sales
`
`CONFIDENTIAL
`
`SUMMIT6-00001958
`
`Exhibit 2049, Page 4
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC
`
`

`
`• Access to special offers on digital photography equipment and services
`
`Benefits to Buyers
`
`• Raise percentage of ads with photos
`• Consistent presentation
`•
`Fast load time
`
`Benefits to eBay
`
`• Satisfied sellers and buyers
`• Richer content
`• More items sold at higher prices = more revenue
`• Reduced support costs
`•
`Exposure with digital camera and scanner purchasers
`
`Room to grow
`
`While PictureWorks is convinced that integrating these services into eBay will add tremendous value
`today, we're already planning for tomorrow. As eBay's imaging needs grow, PictureWorks is uniquely
`positioned to fill those needs. Some of the services PictureWorks can provide when eBay and its
`members are ready include:
`• Multiple photo support- allowing the user to include multiple views of the item they are selling
`360-degree views- allow the buyer to see the wares from all angles
`•
`•
`Zoomable images- allows the buyer to zoom in on the item to look for details and defects
`•
`Email notification system- allows eBay to automatically send a electronic postcard complete with
`photo and description to members looking for a specific item.
`
`CONFIDENTIAL
`
`SUMMIT6-00001959
`
`Exhibit 2049, Page 5
`Google Inc. v. Summit 6 LLC
`IPR2015-00806, Summit 6 LLC