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INTELLECTUAL PROPERTY EXCHANGE INTERNATIONAL INC

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					INTELLECTUAL PROPERTY
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Media Kit
2010
IPXI News Releases
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




FOR IMMEDIATE RELEASE



 WORLD’S FIRST FINANCIAL EXCHANGE FOCUSED ON INTELLECTUAL
 PROPERTY TAPS FORMER PRESIDENT & COO OF CHICAGO CLIMATE
                 EXCHANGE TO TAKE THE HELM

 Gerard J. Pannekoek to Join Intellectual Property Exchange International (IPXI)
                            as President and CEO

CHICAGO -- December 14, 2009 – The Intellectual Property Exchange International
(www.IPXI.com), the World’s First Financial Exchange based on Intellectual Property,
announced today that Gerard J. Pannekoek has joined the company as President and Chief
Executive Officer of IPXI Holdings, LLC, parent to IPXI. In his previous position as President
and COO of the Chicago Climate Exchange (CCX), Mr. Pannekoek was tasked to bring to
market the world’s first multi-national and multi-sector exchange for reducing and trading
greenhouse gas emissions. In less than twelve months, he established the firm’s infrastructure
and trading operations ultimately leading to a successful initial public offering.

The Intellectual Property Exchange International provides an innovative approach to the
commercialization of intellectual property rights or “IP”. IPXI will leverage models used by other
markets but instead of trading traditional commodities or equities, members, individual
inventors, universities and corporations will trade contract rights in patents, trademarks and
copyrights.

Dr. James Angel, Ph.D., of Georgetown University, who specializes in the structure and
regulation of financial markets around the world, observes the great similarities between the
launch of CCX and IPXI. "Both CCX and IPXI are pioneers in building new markets bringing
price discovery and efficiency to large untapped asset classes. Pannekoek's experience in
building a new exchange from scratch makes him the perfect candidate for IPXI."

Leslie Rosenthal, former Chairman of the Chicago Board of Trade (CBOT) and Managing
Member of Rosenthal Collins Group, a leading Chicago-based Futures Commission Merchant
adds, "Gerard is the perfect executive to lead the growth of IPXI. He has a proven track record
in successfully developing and growing exchange and trading businesses, leading them to
successful sale or public listing"

Intangible assets represent approximately 81% of market value, according to research
conducted by Ocean Tomo, LLC, the Chicago based Intellectual Capital Merchant Banc™ firm
and co-founder of IPXI.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
IPXI News Releases
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




  “Our history of valuing IP, pioneering the most advanced web-based patent data ratings and
  analysis platform, creating the Ocean Tomo 300(R) Patent Index (NYSE: OTPAT) and public
auction marketplace for IP assets convinced us to create IPXI”, explains James E. Malackowski,
       the firm's Chief Executive. Mr. Malackowski will remain Chairman of IPXI Holdings.
IPXI is ahead of schedule having completed its’ three year development cycle early. “I am truly
excited about joining the team to accelerate the sales effort” explains Pannekoek. With trading
targeted to begin in the first quarter of 2010, IPXI already presents four initial products:

Unit License Right™ (ULR) Contracts – ULR contracts enable holders of intellectual property
to more efficiently monetize patents and other intellectual property brought to the marketplace
through non-exclusive licensing. ULR contracts transform traditional private licensing of
technology into an exchange-traded product, allowing for market transparency, smooth
technology transfers, and increased cost efficiencies.

According to Pannekoek, ULR contracts are effectively “an IPO for inventors, for both large
corporate R&D groups as well as individuals.”

Enhanced Market Indexes – These provide the investment community access to IP-enhanced
exchange traded funds (ETFs) based on popular stock indexes. By more heavily weighting
companies that have strong IP, these ETFs provide much needed benchmarks and new
portfolio options for financial and corporate communities.

Patent Value Indexes – PVIs track the performance of patented technologies owned by public
and private companies, as well as the patents in a particular technology space, industry, country
or region.

Qualified Equities – These provide a valuable measure of a company’s success as an
innovator within its field. Companies seeking qualification undergo a rigorous certification
process, including an independent assessment of the company’s IP value.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
IPXI News Releases
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




IPXI allows owners of IP to more efficiently monetize their assets while providing investors
access to a new universe of trading, investment and arbitrage opportunities.

Intellectual Property Exchange International, Inc. (IPXI)
Established in 2008, the mission of IPXI is to meet the price discovery, transaction, and data
distribution needs of IP-owners, investors and traders, as well as other market participants by
creating the central marketplace for IP assets and trading products.

Through innovative product offerings, IPXI facilitates investment and risk management in IP-
related assets, allows IP-owners to unlock the value of their assets, and creates efficient
technology transfer markets to improve price discovery for IP-related assets and risks. By
enhancing transparency in the marketplace, IPXI promotes a deeper understanding of the
economics of innovation.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
IPXI News Releases
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




FOR IMMEDIATE RELEASE


       INTELLECTUAL PROPERTY EXCHANGE INTERNATIONAL, INC.
        COMPLETES REVIEW OF UNIT LICENSE RIGHT™ CONTRACT
              RULEBOOK WITH LEADING PATENT OWNERS

      Encouragement of Exchange Participation Leads to “Rule of Amnesty,”
             Protecting Organizations Against Past Unlicensed Use

   Senior Intellectual Property Managers Gather In Dallas March 29-30, 2010, to
               Provide Further Guidance Prior to Exchange Opening

CHICAGO - April 2, 2010 – The Intellectual Property Exchange International Inc.
(www.IPXI.com), the world’s first financial exchange based on Intellectual Property (IP),
reported completion of another significant step in the development of a market to offer and trade
IP rights.

"Beginning with support from the State of Illinois more than four years ago, and following two
public town hall meetings with several hundred corporate IP owners, inventors and other market
participants, the meeting this week with industry-leading potential sponsors represents a key
milestone in the launch of a traded market for IP," reported James E. Malackowski, Chairman of
IPXI and its founding parent company, Ocean Tomo, LLC.

Meeting attendees gathered for a presentation from IPXI executives and advisors on Unit
License Right™ (“ULR”) contracts. ULR contracts present an alternative to traditional licensing,
enabling owners to more efficiently monetize patents through standard contracts, unit-based
market pricing, and transparent reporting.

"Having been through this same process to gather industry backing for a new exchange as
President of the Chicago Climate Exchange (CCX), support shown this week by iconic industry
and university patent holders greatly exceeded all expectations. There was universal opinion
that this market is needed and should open as planned," explained Gerard J. Pannekoek, Chief
Executive of IPXI.

Fourteen national and international corporate and university IP managers attended the
Rulebook meeting. Following two general sessions, participants continued their efforts by
splitting into three prearranged working groups: Selection, Acceptance and Pooling; Pricing and
Auction; and Arbitration, Reexamination and Enforcement. Many companies sent multiple
representatives to contribute to several working groups.

The meeting concluded on Tuesday, March 30, with industry presentations of critical issues and
discussion moderated by Suzanne Harrison, CEO of Gathering 2.0, an independent online peer
community for IP management professionals.

"It was clear from everyone that the first priority was to construct a market that would work for
all patent owners and licensees," noted Harrison. "A major breakthrough resulting from the
meeting was the proposal of amnesty. Industry members, and the IPXI Board, together




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
IPXI News Releases
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




introduced the notion of providing existing operating companies some measure of amnesty for
past unlicensed use, providing they are compliant with relevant ULR contracts within one year
of issuance.”

“I believe IPXI will become a major force in the market,” continued Harrison. “All meeting
participants expressed their commitment in supporting further development of the exchange."

Next steps for IPXI include a revision of the Rulebook incorporating feedback from the Dallas
meeting, posting of all standard transaction documents for public review, and preparation of
ULR-specific training materials to be taught by leading trade associations. The exchange
continues to accept ULR contracts for consideration and is on track to initiate trading activity this
year.

Intellectual Property Exchange International, Inc. (IPXI)
IPXI is the world’s first financial exchange focused on Intellectual Property. The mission of IPXI
is to meet the price discovery, transaction, and data distribution needs of IP-owners, investors,
and traders, as well as other market participants by creating the central marketplace for IP
assets and trading products.

Through its innovative product offerings, IPXI facilitates investment and risk management in IP-
related assets, allows IP-owners to unlock the value of their assets, and creates efficient
technology transfer markets to improve price discovery for IP-related assets and risks.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
IPXI Press
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




October 1, 2010
IPXI CEO, Gerard Pannekoek, featured in TV Tokyo's Global Watch segment

September 22, 2010
IPXI featured in Robert's Rules of Innovation article, "Cashing in on Intellectual Property"

August 29, 2010
IPXI featured in IP Brief blog article, "Unit License Rights and the Rise of IP Finance"

August 24, 2010
IPXI featured in IAM Blog article, "World's first patent exchange inches towards launch; listees
to be named next month"

June 2010
IPXI featured on the Leydig, Voit & Mayer LTD. website in an article originating from
Chicago Lawyer Magazine, "The Futures of IP"

May 26, 2010
IPXI featured in Technology Transfer Tactics article, "New financial exchange offers new
alternative for IP monetization"

April 5, 2010
IPXI featured in Inside Counsel article, "Market for trading IP rights in development"

April 1, 2010
IPXI featured in IAM Blog article, "The world's first IP exchange moves closer following
successful meeting in Dallas"

March 29, 2010
IPXI featured in VedderPrice newsletter, "Company Spotlight: IPXI Brings IP to the Market to
Maximize Value"

March 18, 2010
IPXI featured in Het Financieele Dagblad article, "Patent and new asset class"

March 7, 2010
IPXI featured in IAM Blog article, "IP exchange will not make target opening date, but CEO
hopes for second quarter progress"

March 2010
IPXI CEO, Gerard J. Pannekoek, featured in prominent Korean newspaper, ETNews.

February 23, 2010
IPXI featured in Nano & Cleantech Blog article, "Public Trading of Patent License
Rights: Has the search for reasonable royalty come to an end?"

February 4, 2010
IPXI featured in IP Law360 article, "Selling License Rights: Will the New System Work?"




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
IPXI Press
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




January/February 2010
IPXI featured in IAM Magazine Issue 40 article, "IPXI - A Development to Watch in
Licensing"

January 17, 2010
IPXI CEO, Gerard Pannekoek, featured in Northwest Indiana Times article, "Chesterton
man leads way in devising ways to trade intangibles - Gerard Pannekoek runs the world's first
exchange of IP"

January 14, 2010
IPXI CEO, Gerard Pannekoek, featured in Bismark Tribune video

Q1 2010
IPXI featured in O'Connor & Company Patent Quarters newsletter, "Intellectual Property
Exchange is Launched"

December 18, 2009
IPXI featured on IP Prospective Blog, "IPXI Names New President, Aims High with Unit
License Rights"

December 18, 2009
IPXI featured in IAM Blog article, "New exchange can be a game-changer, but will need good
patents to thrive"

December 17, 2009
IPXI featured on The Intangible Economy Blog, "Patent Exchange"

December 15, 2009
IPXI featured in IP Law360 article, "Debut IP Exchange Taps Carbon Market Guru as CEO"

December 15, 2009
IPXI featured in EMII.com article, "Patent Exchange Set for 2010 Launch"

December 14, 2009
IPXI featured in Dow Jones article, "First Patent Exchange to Launch Early Next Year"




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Executive Biographies
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




                    Gerard J. Pannekoek, President & CEO, IPXI Holdings, LLC
                    Phone: 312.3777.4833
                    Fax: 312.327.4401
                    Email: gpannekoek@ipxi.com

                   Gerard J. Pannekoek joined IPXI Holdings, LLC, in November, 2009, as the
                   company's President and Chief Executive Officer. In that capacity, he is
                   responsible for overseeing all aspects of the company's operations. Gerard
                   possesses more than 25 years of diverse corporate experience, with areas
                   of expertise and responsibility that include both domestic and international
management, finance, marketing, and operations. Throughout his career, Gerard has
developed and managed major projects and initiatives involving complex business issues, legal
transactions, mergers and acquisitions, and restructuring.

Before assuming his role at IPXI Holdings, Gerard served as a Teaching Professor at the
University of Notre Dame's Mendoza College of Business. He taught entrepreneurship and
international management to MBA and undergraduate students.

From 2002 to 2005, Gerard was President and Chief Operating Officer of the Chicago Climate
Exchange (CCX), a start-up company that became the world's first multi-national and multi-
sector market for reducing and trading greenhouse gas emissions. In that capacity he designed,
implemented and managed the transition of a unique idea into an actual business, and
established the firm's infrastructure and trading operations in less than 12 months. He also
created a strategic alliance with the International Petroleum Exchange in London to establish
the European Climate Exchange, which is currently the leading exchange in European carbon
trading.

Prior to CCX, Gerard served as Senior Vice President of ABN AMRO, which he joined as a
member of its senior management team following the acquisition of certain business lines from
Sakura Dellsher, Inc. (SDI), a global derivatives brokerage firm. He worked at SDI from 1994 to
2000, where he served as Chairman of the firm's Executive Committee and as a member of its
Management Credit Committees. In his capacity as Executive Vice President, he initiated and
directed the firm's transformation from a bank-owned brokerage firm (which limited its scope to
proprietary business only) to a first-class financial institution. Gerard was also the principal
advisor to SDI's Board of Directors during the negotiations and ultimate sale of its business to
ABN AMRO.

From 1991 until 1994, Mr. Pannekoek served as Director of International Marketing at Quantum
Financial Services. He started his career in Chicago in 1982 as Senior Manager of the
Netherlands Chamber of Commerce.

Mr. Pannekoek is a native of the Netherlands, where he received his Bachelors of Arts degree
from the H.E.A.O. College in Zwolle. He earned his Master of Management Degree from the
Kellogg Graduate School of Business at Northwestern University. Since 1995 he has been a
member of the Finance Advisory Council of the University of Iowa.

He is the co-founder of the Future of Chesterton Foundation, serves on the Board of Directors
of the Porter County Community Foundation, and is an adjunct instructor at the Mendoza
College of Business at the University of Notre Dame. Mr. Pannekoek resides in Chesterton,
Indiana with his wife, son and daughter.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Executive Biographies
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




                        James E. Malackowski, Chairman, IPXI Holdings, LLC
                        Phone: 312.327.4410
                        Fax: 312.327.4401
                        Email: jmalackowski@ipxi.com

                        James E. Malackowski is the Chief Executive Officer of Ocean Tomo,
                        LLC, an integrated Intellectual Capital Merchant Banc™ firm providing
                        financial products and services related to Intellectual Property (IP) expert
testimony, valuation, investments, risk management and transactions. Ocean Tomo assists
clients — corporations, law firms, governments and institutional investors — in realizing
Intellectual Capital Equity® value broadly defined. Subsidiaries of Ocean Tomo include: Ocean
Tomo Auctions, LLC; Ocean Tomo Asset Management, LLC; and Ocean Tomo Capital, LLC --
publisher of the Ocean Tomo 300® Patent Index (Amex: OTPAT). Ocean Tomo is the founder
and majority owner of the Intellectual Property Exchange International, LLC.

Mr. Malackowski is a member of the IP Hall of Fame Academy and was recognized in 2007 by
Managing Intellectual Property magazine as one of the fifty most influential people in intellectual
property. In 2008, Mr. Malackowski was again named as one of the Top 50 IP professionals
under the age of 45 in IP Law & Business as well as one of the "World's 250 Leading IP
Strategists" by IAM Magazine. Prior to forming Ocean Tomo, he served as a finance and
investment advisor working with one of the Nation's oldest investment banks as well as one of
Chicago's largest private equity firms.

Mr. Malackowski began his career spending fifteen years as a management consultant and
forensic accountant focused on intangible assets. In this capacity Mr. Malackowski served
numerous roles as a founding principal including President and Chief Executive Officer of his
firm, growing the practice to the nation's largest before its sale.

Mr. Malackowski has advised clients and counsel on business valuation issues as well as all
phases of the technology transfer process. He has substantial experience as a Board Director
for leading technology corporations as well as companies with critical brand management
issues. His expertise extends to intangible asset portfolios as well as business segments and
complete entities.

Apart from his own firm, Mr. Malackowski has served in a leadership role with numerous
corporate entities, both public and private. He is a member of the President's Council for the
Chicago Museum of Science and Industry and a current Director of Invent Now, Inc., a
subsidiary of the National Inventors Hall of Fame where Mr. Malackowski previously served as
Trustee. Mr. Malackowski is Secretary for The Licensing Executives Society International, Inc.
He is a Past President of The Licensing Executives Society USA and Canada, Inc. and a former
Director of the International Intellectual Property Institute as well as a prior Resident Advisor for
the U.S. Department of Commerce and U.S. Information Agency on matters relating to
intellectual capital.

Mr. Malackowski is a frequent speaker on emerging technology markets and related financial
measures. He has addressed mass media audiences including Bloomberg Morning Call,
Bloomberg Evening Market Pulse, Bloomberg Final Word, CNBC Closing Bell, CNBC On the
Money, CBS News Radio and Fox Business National Television. Mr. Malackowski has also
appeared as a judge on PBN's Everyday Edisons.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Executive Biographies
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




On more than thirty occasions, Mr. Malackowski has served as an expert in Federal Court or the
International Trade Commission on questions relating to intellectual property economics,
including the subject of business valuation and the impact of advertising programs. As an
inventor, Mr. Malackowski has ten issued U.S. patents and an even larger number of pending
applications.

He is an Adjunct Professor of Law at Chicago-Kent College of Law as well as an Adjunct
Instructor at the University of Notre Dame Mendoza College of Business where he was a
Summa Cum Laude graduate majoring in accountancy and philosophy. Mr. Malackowski is
Certified in Financial Forensics, a Certified Licensing Professional and a Registered Certified
Public Accountant in the State of Illinois.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Executive Biographies
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




                        Joel Lutzker, General Counsel, IPXI Holdings, LLC
                        Phone: 203.542.7219
                        Fax: 203.542.7220
                        Email: jlutzker@ipxi.com

                         Mr. Lutzker has over 30 years of experience in patent litigation and
                         transactions. After over two decades with the New York intellectual
                         property boutique of Amster, Rothstein & Ebenstein, in 2001, Mr. Lutzker
joined the New York firm of Schulte, Roth & Zabel to start and head the firm's intellectual
property department. Most recently, Mr. Lutzker was the head of the New York intellectual
property group of Sheppard, Mullin, Richter & Hampton. Mr. Lutzker has been first chair
litigation counsel in patent cases in federal district courts throughout the country, has argued on
numerous occasions before the United States Court of Appeals for the Federal Circuit and has
been principal counsel and author of several amicus briefs on significant patent cases before
the United States Supreme Court.

Mr. Lutzker has also represented companies in handling the intellectual property aspects of
major M&A transactions as well as numerous licensing and patent acquisition transactions.
While at Schulte Roth, Mr. Lutzker was heavily involved in the representation of hedge funds
and other financial services institutions with regard to intellectual property issues. Mr. Lutzker
also has placed significant focus on international intellectual property issues including
U.S./Europe and U.S./Asian (primarily Japan and China) litigation and transactions. He is a
member of the bar of New York, Connecticut, the United States Patent and Trademark Office
and numerous federal courts across the country. Mr. Lutzker is a graduate of the New York
University School of Law and has a B.A. in Physics from New York University, University
College of Arts and Science. He is a frequent speaker on patent litigation and licensing topics
and is the author of numerous articles.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Executive Biographies
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




                        Michael D. Friedman, Director, IPXI Holdings, LLC
                        Phone: 312.327.4428
                        Fax: 312.327.4401
                        Email: mfriedman@ipxi.com

                        Michael D. Friedman is a Director at IPXI, and a Managing Director at
                        Ocean Tomo. OTAM creates and manages intellectual property-based
                        public and private investment products. The public products include
exchange traded funds, hedge funds and long only funds. The private products include
intangible asset based financings, direct debt and equity investments into corporations and
special situation investments. Mr. Friedman also heads Ocean Tomo's Investment Banking
practice (OTIB), a division that brings IP financing, monetization and capital markets solutions to
corporations and other intellectual property owners.

Prior to joining Ocean Tomo, Mr. Friedman founded and was Managing Partner of FHS
Investments, LLC, a multi-strategy hedge fund engaged in special situations trading, volatility
arbitrage and convertible bond arbitrage. From 1996 through 2002, Mr. Friedman was a
managing director at UBS Wealth Management and UBS Investment Bank where he was co-
head of Special Situations for the O'Connor hedge fund and proprietary Special Situations
trading, respectively. Mr. Friedman began his career in investment banking and trading in 1994
when he joined Swiss Bank Corporation (predecessor to UBS) and structured equity derivative
products.

After graduating from law school, Mr. Friedman practiced mergers and acquisitions and
securities law for six years. Mr. Friedman worked on a number of public and private mergers
and acquisitions transactions - hostile and friendly, stock sales, asset sales including many
cross-border transactions -- as well as financing transactions through public and private
securities offerings.

Mr. Friedman has published in the areas of antitrust, corporate control contests and disclosure
requirements under the securities laws. He is a member of the board of directors of the
Intellectual Property Exchange International (IPXI), the world’s first IP-focused financial
exchange.

Mr. Friedman holds a JD from the University of Chicago Law School, where he worked as
Research Editor of the University of Chicago Legal Forum. He also holds a BS in marine
engineering and nautical science from the U.S. Merchant Marine Academy. Mr. Friedman is a
U.S. Coast Guard licensed Third Assistant Engineer of Steam and Motor Vessels of Unlimited
Horsepower, and a Third Mate of Ships of Any Gross Tonnage upon Oceans.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
IPXI Fact Sheet
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




About IPXI
The Intellectual Property Exchange International (IPXI) is the world’s first financial exchange
focused on intellectual property (IP) rights.

IPXI allows owners of IP to more efficiently monetize their assets, providing investors with
access to a new universe of trading, investment and arbitrage opportunities. Through its
innovative product offerings, IPXI facilitates investment and risk management in IP-related
assets, allows IP-owners both large and small to unlock the value of their assets, and creates
efficient technology transfer, improving price discovery. By enhancing transparency in the
marketplace, IPXI promotes a deeper understanding of the economics of innovation.

Founded
IPXI was created in 2008 by Ocean Tomo, LLC. As the leading Intellectual Capital Merchant
Banc™ firm, Ocean Tomo provides financial products and services related to Intellectual
Property, including expert testimony, valuation, research, ratings, investments, risk
management and transactions.

Mission
To create a marketplace for a unique portfolio of financial products and services that facilitate
investment and risk management in IP assets, helping buyers and sellers efficiently allocate IP
rights.

Objectives of IPXI include:
   • Enabling efficient technology transfer
   • Facilitating reasonable, market-based pricing
   • Enhancing transparency in the IP marketplace
   • Assisting IP owners in unlocking the value of their IP assets
   • Mitigating IP-related price risk

By enhancing transparency in the marketplace, IPXI promotes a deeper understanding of the
economics of innovation.

Contact Information
Intellectual Property Exchange International, Inc.
                       th
200 West Madison, 37 Floor
Chicago, IL 60606
P: 312.327.8009
F: 312.327.4401
E: info@ipxi.com




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Unit License Right™ (ULR) Contract Fact Sheet
                                                                                   Media Contact:
                                                                                        Bree Miller
                                                                                    773.307.6257
                                                                         breemiller@klsedition.com




What are ULR contracts?
ULR contracts offer a more efficient approach to IP monetization, licensing & enforcement.

IPXI has spearheaded the development of an efficient IP marketplace with the introduction of
ULR contracts. ULR contracts transform private licensing of technology into tradable products,
allowing for improved market transparency, smooth technology transfers, and increased
efficiencies. ULR contracts enable IP holders to more efficiently monetize patents and other IP
brought to market through non-exclusive licensing, while also allowing buyers to purchase at
market-established prices. Each ULR contract purchased gives the buyer the right to use the IP
offered for a pre-established number of instances in the manufacturing and/or sale of a product
or service.

What makes ULR contracts distinctive and beneficial to end users?
  • Selection committee quality standards
  • IP pooling assistance
  • Standard document efficiency and commoditization
  • Transaction transparency and public rulebook
  • Tranche pricing structure and banding
  • Amnesty offerings
  • Auditing and reporting mechanisms
  • Dutch Auction market pricing
  • Secondary trading for qualified users and institutional investors
  • Contract registry and position limits
  • Community membership and objective, good faith enforcement

ULR Contract Licensor Benefits
   • Efficient monetization of patent portfolios
   • Dramatically reduced legal costs
   • Avoidance of forced cross-licensing
   • Outsourced auditing
   • Timely reports on licensee usage
   • Market-determined fair and reasonable licensing terms
   • Flexible rights structure

ULR Contract Licensee Benefits
   • Efficient acquisition of licenses to patent portfolios
   • Potential amnesty for past infringement
   • In-licensing standard contracts
   • Ability to resell unused ULR contracts to accommodated reduced future needs
   • Fair and level playing field for all prospective licensees
   • Formal mechanism to request investigation for alleged infringement

Contact Information
Intellectual Property Exchange International, Inc.
200 West Madison, 37th Floor
Chicago, IL 60606
P: 312.327.8009
F: 312.327.4401
E: info@ipxi.com




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Frequently Asked Questions: Unit License Right™ (ULR) Contracts




About IPXI & ULR Contracts

What are the primary objectives of ULR contracts?

          To assist patent owners with monetization of their portfolios, returning investment
          dollars back to research and development creating a virtuous cycle of innovation
          To maximize licensing opportunities and access the full addressable market for the
          technology including smaller users not otherwise efficiently reached
          To assure fair market pricing without bias based on size of licensee
          To provide transparency to the IP market, including price discovery and comparables
          information, enabling senior management to make better decisions about intellectual
          property management and R&D matters
          To address the main considerations of operating companies for non-compliance,
          providing an economically efficient and accessible means to compliance and eliminating
          the risk of litigation and excessive damage awards
          To allow market-driven pooling and more refined options when selecting relevant
          patents for licensing
          To first manage enforcement or disputes through a “committee of peers” and industry-
          supported Rulebook rather than traditional litigation
          To allow for development of a technology transfer market based on participant needs
          rather than legislative reform

Which problems with traditional licensing and enforcement programs does the ULR
contract market address?

          The lack of contract standards
          Inefficient distribution mechanics
          Market opacity, leading to inadequate price discovery
          Supply uncertainty
          The lack of predictability in licensors’ prospective enforcement strategies
          Inaccessibility to smaller market participants


Why is the exchange model appropriate for the licensing and enforcement of patent
portfolios?

          It allows for transparency in licensing and enforcement of valuable IP
          Standardized exchange offerings and secondary market transactions avoid the cost and
          trouble of having to create bespoke bi-lateral contracts between licensee and licensor
          Exchange-based price discovery enables ULR contract buyers to purchase licenses at
          market-determined prices




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Frequently Asked Questions: Unit License Right™ (ULR) Contracts




          Open exchange access enables all qualified buyers to obtain licenses
          The exchange platform allows for ULR contract owners to purchase on an as-needed
          basis and/or sell in the secondary market
          The exchange model allows for the collection and dissemination of ULR contract
          consumption data


Benefits to IP Owners


What specific benefits can licensors achieve by bringing IP to market through ULR
contracts?

          ULR contracts allow for the efficient monetization of patent portfolios
          By increasing buyer confidence and therefore licensee demand, ULR contracts allow for
          increased licensing opportunities and revenue maximization
          ULR contracts offer dramatically reduced legal costs for both licensor and licensee, due
          to standardized, exchange-based initial and follow-up offerings, as well as secondary
          market transactions
          ULR contracts enable IP owners to avoid forced cross-licensing
          By using ULR contracts the IP owner is able to outsource marketing, auditing and
          enforcement activities to third parties
          Market participants receive timely reports on licensee usage
          Licensing terms conform to fair and reasonable standards
          ULR contracts offer a flexible rights structure


What are the relative merits of bringing a patent to market as a ULR contract versus
selling it outright?

          By retaining ownership, the ULR contract issuer can achieve ongoing revenue streams
          from multiple ULR contract offerings
          Certain types of ULR contracts may involve the purchase of the patents by IPXI, in
          which case the seller can obtain upfront cash payment for the patent just as they would
          in an outright patent sale


What are the relative merits of IPXI bringing a patent to market as a ULR contract versus
traditional in-house licensing programs?

          In-house licensing requires the IP owner to carefully control the licensing program,
          including selection of licensees, negotiation of price, contractual terms, audit of usage,
          and enforcement, whereas ULR contracts allow for the IP owner, where desired, to
          outsource some or all of the critical licensing and enforcement functions




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Frequently Asked Questions: Unit License Right™ (ULR) Contracts




          ULR contract standardization, transparency, and price discovery offer the potential for
          vastly larger market opportunities than possible through traditional bi-lateral licensing
          activities
          ULR contract buyers’ ability to purchase on an as-needed basis and resell in the
          secondary market may increase buyer confidence and therefore demand, maximizing
          revenue to the licensor
          ULR contracts avoid cross-licensing demands which may arise through in-house
          licensing


Why would a company utilize ULR contracts to bring patents to market that it hasn’t
already licensed itself?

          A company may not have the resources to conduct in-house licensing or enforcement
          programs
          A company may be concerned about pursuing enforcement activities, for the possible
          negative reaction from existing customers and/or the media
          A company can avoid being forced into a disadvantageous cross-licensing deal that
          does not adequately compensate it for the contributed IP


As the ULR product becomes accepted, will ULR contracts supplant in-house licensing?

          No. In-house licensing will continue to comprise the primary form of corporate
          technology transfer into the foreseeable future. However, for certain types of IP the ULR
          contract approach represents an important innovation for the corporate community, one
          that will complement in-house licensing programs and whose efficiencies and cost
          savings will allow for a net increase in amount of IP that companies bring to market.

What benefits can university technology transfer office licensors achieve by bringing IP to
market through ULR contracts?

           IPXI will allow university technology transfer to adhere to their often cited mission to
           monetize and/or commercialize the University's scientific and technical research
           findings for the benefit of the University and the general public.
           ULR contracts’ market based pricing will be fair and reasonable, ensuring that
           university technology transfer offices adhere to their mission
           ULR contracts will provide university technology transfer office management with
           information to make better informed decisions regarding intellectual property strategy,
           maximizing the benefit to the University and public. Information includes:
                  Price discovery
                  Market characteristics
                  Demand and consumption analytics




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Frequently Asked Questions: Unit License Right™ (ULR) Contracts




Benefits to Licensees


What specific benefits can licensees achieve by buying ULR contracts?

          ULR contract buyers can efficiently obtain fully paid-up, unitized licenses to critical
          patent portfolios
          ULR contract buyers benefit from in-licensing contract standards
          ULR contract buyers may benefit from lower unit prices with early adoption
          ULR contract buyers have the right to resell unused ULR contracts or buy additional
          ULR contracts in the IPXI secondary market to accommodate reduced or increased
          future needs
          ULR contracts offer a fair and level playing field (no qualified licensee is banned from
          acquiring ULR contracts)
          ULR contract buyers generally may remain anonymous
          ULR contract buyers can request that IPXI’s enforcement committee investigate
          allegations of infringement


What will motivate potential ULR contract buyers to purchase voluntarily, rather than wait
for enforcement?

          Because of Rulebook processes to help ensure validity, address issues of claim scope
          and provide fair and reasonable pricing, purchasing ULR contracts will be viewed as an
          efficient risk management tool against patent infringement
          IP companies will view the ULR contract market as a way to spearhead new technology
          development and be perceived as industry leaders
          Potential licensees will want to avoid the negative publicity that is likely to come from
          commencement of an enforcement action for infringement
          As in the case of other new exchanges, for example, the Chicago Climate Exchange
          (CCX), many companies voluntarily become members of the exchange, in order to be
          considered good corporate citizens
          Favorable pricing and potential amnesty for early adopters will incentivize purchasing


Characteristics of ULR Contracts


What are the characteristics of a strong ULR contract candidate?

          The size of the ULR contract offering exceeds $25 million
          There is observable use of the IP and a large number of potential licensees
          The IP has at least 5-7 years of remaining life




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Frequently Asked Questions: Unit License Right™ (ULR) Contracts




          Usage of the IP can be “unitized”
          Usage can be readily monitored
          The due diligence process reveals one or more of the following qualities in the IP:
           o      Successful existing licensing history
           o      Successful judicial determination
           o      Successful patent office reexamination

Can a ULR contract be based on a non-U.S. issued patent or patent portfolio?

          Yes. However, the economics of licensing and enforcing are likely to vary greatly from
          jurisdiction to jurisdiction.


How does a company know if any of its patents are good ULR contract candidates?

          IPXI works with the IP owner and its IP advisor to identify patents within the company
          portfolio that may be worthwhile ULR candidates
          IPXI works with the IP advisor to conduct market research to determine if a sufficiently
          robust market for the IP exists, including searching for potential licensees
          IPXI works with the IP owner and its advisors to determine a reasonable initial offering
          price, taking into consideration relevant industry royalty rates and potential demand for
          the technology among likely ULR contract buyers. A reverse or “Dutch” auction may be
          used to validate pricing and assure greater market acceptance.

When will IPXI bring its first ULR contract to market?

          IPXI is currently screening a large number of potential ULR candidates. It anticipates
          issuing a series of ULR contracts, covering a wide variety of technologies, beginning in
          2010.


Enforcement


What distinguishes IPXI from other non-practicing entities that pursue aggressive
enforcement programs?

          IPXI is a “White-Hat Enforcer” driven first by community rules rather than litigation. Such
          enforcement of community rules is common among all exchanges, including the most
          well-known equity and commodity markets.
          ULR contract buyers agree to be bound by IPXI’s arbitration rules, and alternative
          dispute resolution mechanisms, including re-examination, will be considered by IPXI
          before commencing enforcement litigation.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Frequently Asked Questions: Unit License Right™ (ULR) Contracts




          Effectively, the IP owner or Sponsor of a ULR contract has a right to veto pursuit of
          litigation
          IPXI’s stringent selection and acceptance criteria, in addition to a public comment and
          vetting process, is rigorous and should address validity and pricing concerns leading to
          only strong, quality patent portfolios to be marketed through ULR contract offerings.
          IPXI’s only goal in authorizing enforcement is to maintain the integrity of the market-
          based system for the benefit of all market participants. This system promotes fair,
          reasonable, and non-discriminatory practices among IP-owners and ULR contract
          buyers alike.
          To the extent IPXI authorizes an enforcement action, the remedy sought from the
          infringer is specific performance in the market (i.e., if the infringer needs to purchase
          100,000 ULR contracts to no longer be infringing, a portion of the recovery would be
          used to purchase ULR contracts in the primary or secondary market)
          As part of the ULR contract enforcement process, IPXI will establish an independent
          enforcement committee to investigate instances of infringement and make
          recommendations to IPXI


Patent Encumbrances & Licensing Concerns


How will ULR contracts manage existing encumbrances?

         Leveraging lessons learned through patent auctions, ULR contract offering documents
         will both provide disclosure of licenses and other encumbrances and seek to describe
         the remaining market opportunity.

How does IPXI address risks of royalty stacking or the need to license multiple patent
portfolios for any given product?

          All available rights for sale are publicly recorded and transparent
          IPXI will solicit ULR contracts of interest to buyers
          IPXI believes that patent pooling organizations will continue to serve a role in the
          market
          IPXI is actively discussing the opportunity for patent pools to offer ULR contracts


What is the role of ULR contracts for patents already contributed to pools?

         ULR contracts provide a means to offer pool rights of a given patent owner to users who
         have not chosen to license existing pools
         ULR contracts, by their very nature, meet the requirement of being RAND offerings
         (reasonable and non-discriminatory)




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
Frequently Asked Questions: Unit License Right™ (ULR) Contracts




What are the withholding tax implications of a ULR contract offering for non-resident IP
owners or buyers?

         The withholding tax treatment of ULR contract payments should not substantially differ
         from the treatment of royalty payments in traditional licensing models. An independent
         tax advisor should be consulted before relying on this information or participating on the
         Exchange.

What position is IPXI adopting with respect to patent exhaustion?

         ULR contract standard licensing agreements between Issuer and ULR contract buyers
         provide that purchasers of Licensed Products are afforded International Exhaustion
         Rights. IPXI recognizes exhaustion to downstream.

Will IPXI facilitate the transfer of know-how required to implement the licensed invention?

         If know-how is required, the related ULR contract may include a right to the needed data,
         drawing, software or other IP. The know-how elements of each ULR contract and related
         transfers will be described in the offering memorandum.




Intellectual Property Exchange International • 200 West Madison • 37th Floor • Chicago, IL 60606
INTELLECTUAL PROPERTY EXCHANGE INTERNATIONAL, INC. (IPXI)
IS THE WORLD’S FIRST FINANCIAL EXCHANGE FOCUSED ON
INTELLECTUAL PROPERTY RIGHTS.
                                                                                       WHAT MAKES ULR
                                                                                       CONTRACTS DISTINCTIVE &
Today’s intellectual property (IP) marketplace needs a paradigm change.                BENEFICIAL TO USERS?
Despite evidence of ever increasing technology licensing and sales, the market         • Selection committee quality
for IP continues to suffer from illiquidity, high transaction costs, a lack of price     standards

discovery, and other information asymmetries. IPXI seeks to alleviate these            • IP pooling assistance
problems and create an efficient trading platform for buyers and sellers of
                                                                                       • Standard document efficiency and
intellectual property rights.                                                            commoditization

IPXI’s mission is to create a marketplace for a unique portfolio of financial          • Transaction transparency and public
products and services that facilitate investment and risk management in IP               rulebook

assets, helping buyers and sellers to efficiently allocate IP rights.                  • Tranche pricing structure and
                                                                                         banding
Objectives of IPXI include:
                                                                                       • Amnesty offerings
  • Enabling efficient technology transfer
                                                                                       • Auditing and reporting mechanisms
  • Facilitating reasonable, market-based pricing, while mitigating IP-related
                                                                                       • Dutch Auction market pricing
    price risk
                                                                                       • Secondary trading for qualified users
  • Enhancing transparency in the IP marketplace
                                                                                         and institutional investors
  • Assisting IP owners with unlocking the value of their IP assets
                                                                                       • Contract registry and position limits
IPXI seeks to commence the development of an efficient IP marketplace with
                                                                                       • Community membership and
the introduction of Unit License Right™ (ULR) contracts.                                 objective, good faith enforcement
ULR CONTRACT LIFECYCLE
                                          UNIT LICENSE RIGHT (ULR) CONTRACTS

                                          ULR contracts transform traditional private licensing of technology into tradable
        SUBMISSION
• Selection committee quality
                                          products, allowing for improved market transparency, smooth technology transfers,
  standards                               and increased efficiencies. ULR contracts enable IP holders to more efficiently monetize
• IP pooling assistance                   patents and other IP brought to market through non-exclusive licensing, while also
                                          allowing buyers to purchase at market established prices, effectively mitigating IP-risk
                                          exposure. Each ULR contract purchased gives buyers the right to use the IP offered for
                                          a pre-established number of instances in the manufacturing and/or sale of a product or
                                          use of a process.
      ACCEPTANCE
• Standard document efficiency
                                          SUBMISSION, POOLING ASSISTANCE & VETTING
  and commoditization
                                          A ULR contract is submitted by an IP owner for consideration through presentation to
• Amnesty offerings
                                          IPXI of a Unit Offering Scenario. Alternatively, IPXI may solicit ULR contract opportunities
                                          from IP owners and assist in pooling efforts. In its submission, the IP owner can
                                          establish conditions for the granting of amnesty for past infringement as an incentive to
                                          encourage early adoption.
              SALES
• Market pricing                          To ensure the development of a high quality IP marketplace, IPXI’s Selection Committee
• Tranche pricing structure and           vets ULR contract opportunities based on quality standards, determined from:
  banding
• Secondary trading for qualified           • An abstract of the technology and business opportunity
  users and institutional buyers
• Contract registry and position limits     • Identity of the full portfolio and highlight of any core patents within the portfolio
• Transaction transparency
                                            • Market identification, including:

                                                  » Proposed field of use

                                                  » Proposed unit basis
          AUDITING
• Auditing and reporting                          » Identification of prospective licensees
  mechanisms
• Community membership and                        » Market adoption time, trends, rate, and size
  objective, good faith enforcement
                                            • Identification of any encumbrances, including most favored licensee obligations

                                          ACCEPTANCE & ULR CONTRACT PREPARATION

                                          Upon approval by the Selection Committee, the IP owner assigns or exclusively licenses
                                          a patent or patent portfolio to a special purpose vehicle (SPV) formed by an IPXI affiliate
                                          under a standard IPXI contract. The SPV serves as Master Sub-Unit Licensor or Master
                                                                                                ULR CONTRACT
Unit Licensor for purposes of offering ULR contracts. IPXI has prepared standard                LICENSOR BENEFITS
agreements for both IP owners and ULR contract buyers to effectuate the listing, sale           • Efficient monetization of
and consumption of ULR contracts.                                                                 patent portfolios

                                                                                                • Dramatically reduced legal
SALES, AUCTION & TRANCHE OFFERINGS                                                                costs

ULR contract initial offerings will use either a sealed bid Dutch Auction with an               • Avoidance of forced cross-
undisclosed minimum price, or customized offerings to ensure demand-based pricing.                licensing

Sales are limited to entities that certify they are buying for their own use and/or Qualified   • Outsourced auditing
Institutional Buyers that certify they have IP transaction experience and are not relying
                                                                                                • Timely reports on licensee
on the efforts of others.                                                                         usage

Follow-on offerings are authorized when all units in the initial offering are oversubscribed    • Market-determined fair and
or sold, or when at least 75% of outstanding ULR contracts have been consumed.                    reasonable licensing terms

Additionally, these offerings are subject to price banding to make certain market prices        • Flexible rights structure
reflect actual rates of technology adoption.
                                                                                                ULR CONTRACT
ULR contracts may also be transacted in the secondary market. Position limits are in            LICENSEE BENEFITS
place to ensure diversification of ULR contract holders. Additionally, IPXI is committed        • Efficient acquisition of
to market transparency and will publicly report ULR contract trading volumes and                  licenses to patent portfolios

aggregate consumption numbers by Operational and Institutional Buyers.                          • Potential amnesty for past
                                                                                                  infringement
AUDITING, ARBITRATION & ENFORCEMENT                                                             • In-licensing standard
The SPV, coordinated by IPXI, is responsible for periodically auditing the consumption            contracts

of purchased ULR contracts, arbitrating ULR contract disputes between market                    • Ability to resell unused ULR
participants, and seeking approval from IPXI to convert to enforcement status. In the             contracts to accommodate
                                                                                                  reduced future needs
event an enforcement action is deemed necessary, IPXI will coordinate these activities
                                                                                                • Fair and level playing field
with the goal that infringers buy the required number of ULR contracts in the primary or
                                                                                                  for all prospective licensees
secondary market.
                                                                                                • Formal mechanism to
IPXI’s goal is to avoid court litigation, with its associated delays, expense and                 request investigation for
uncertainties, and to adopt market-based solutions for dispute resolution.                        alleged infringement

CURRENT DEVELOPMENT
Targeted to begin trading in 2010, IPXI is currently soliciting submissions for ULR
contract offerings.
  SAMPLE UNIT LICENSE RIGHT CONTRACT                               ANTICIPATED RESALE MARKETS
  SPECIFICATION
                                                                   ULR contracts are anticipated to develop a
  USP X,XXX,137 A/B/C                                              secondary market with price discovery through
  General Description: USP X,XXX,137 A/B/C Valve Seat              the IPXI Bulletin Board, supported by third party
                       Insert                                      liquidity providers. Illustrative data follows:
  Patent(s):             USP X,XXX,137 and continuations,
                         continuations-in-part and foreign
                                                                   USP X,XXX,137 A/B/C
                         counterparts
  Field of Use:          All                                       Expiration: 12/31/17

  Restrictions:          All secondary sales through IPXI
                                                                   PRIMARY MARKET DATA
  Issuer Right to Use:   Yes including all subsidiaries
                                                                   Tranche      Authorized         Issued       Consumed
  Unit Basis:            Each ULR contract covers one
                         automotive or light truck engine          U137A       10,000,000 10,000,000            6,888,658
  Total Offered Qty:     50 million license units offered in 10    U137B       10,000,000      2,500,000            –
                         unit lots
                                                                   U137C       30,000,000           –               –
  Term of License:       Until consumed
                                                                   Follow-on   50,000,000           –               –
  Opening:               Dutch Auction (50% minimum                (each)
                         quantity & price)
  Encumbrances:          Third Party License(s)
                                                                   SECONDARY MARKET DATA
  IPXI Price Banding:    +/- 20%
                                                                                                        % Inventory Held by
  Amnesty:               Full                                      Tranche       Bid         Ask         Institutional Users

                                                                   U137A        $0.625     $0.630             28%
  Tranches
  U137A: 10 million ULR contracts                 $0.50 per unit   U137B        $0.750     $0.750              0%
  U137B: 10 million ULR contracts                 $0.75 per unit   U137C           –          –                 –
  U137C: 30 million ULR contracts                 $1.00 per unit   Follow-on       –          –                 –
                                                                   (each)
  Follow-on Offerings Through Term (2017)
  50 million ULR contracts each          Deemed Market Price




CONTACT
p: 312 327 8009
f: 312 327 4401
e: info@ipxi.com

200 W. Madison, 37th Floor
Chicago, IL 60606                                                                      Visit www.IPXI.com for additional information.

				
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