IP3 2019 Industry Patent Purchase Program Overview

IP3 2019 ANALYTICS FOR MEDIA March 10, 2020 1

IP3 2019 Overview IP3 2019 was the fourth iteration of AST s Industry Patent Purchase Program, a fixed price, fixed term, collaborative patent buying program that provides patent owners access todozens of leading technology companies Submission period: July 15 through July 26, 2019 IP3 2019 focused on soliciting patents from the following technology areas: Advertising & Content Distribution Artificial Intelligence (AI) & Machine Learning (ML) Augmented (AR) & Virtual Reality (VR) Automotive & Mobility Blockchain & Financial Services Cloud Computing & Web Services Computer Software & Hardware Health Tech & Healthcare IT Internet of Things (IoT) & Smart Home LED Lighting & Optoelectronics Location-Based Services / Navigation Medical Devices & Imaging Semiconductor Manufacturing & Equipment Wireless & Telecommunication Participants: 24 operating companies including: Cisco, Facebook, Google, Honda, IBM, Intel, Microsoft, Oracle, Philips, SAP, Uber and Verizon Total Spent: ~ $5M 2

IP3 2019 Results Summary $4.857M spent to acquire 53 patent families Purchased Deals 45 deals acquired 53 families, 91 U.S. Patents, 113 active assets All deals have at least 1 US issued patent Ranged from $1,000 to $450,000 Avg. price per patent family $96k compared to $99K in IP3 2018, $128k in IP3 2017, and $96k for IP3 2016 Avg. price per deal - $108K 24 Members contributed to the acquisitions AST closed 43 of the deals by year-end 2019 2 deals were delayed due to issues with the sellers 3 Source: AST - IP3 2019

IP3 2019 Submission Stats 1,052 IP3 Submissions by 338 Patent Owners Over 1,300 submissions were received out of which 250+ submissions were rejected or excluded from program due to subject matter, family issues, etc. Almost double the number of total submissions compared to IP3 2018 1,052 valid submissions published as potential AST deals 1,311 patent families with 2,816 active assets from 38 jurisdictions 2,546 issued patents, 211 published apps, 59 unpublished apps 1,973 US assets - 1,795 issued patents, 178 pending applications 88% or 926 submissions were single patent family offerings 117 submissions with 2-5 patent families 9 submissions with more than 5 patent families 65% or 683 submissions had at least one previously offered asset to AST In IP3 2018, 75% of all submissions were previously received. 4 Source: AST - IP3 2019

IP3 Submissions by Seller Submitted Categories Wireless & Communications was the leading seller submitted technology category for IP3 with 231 submissions and 259 patent families. Patent Families WW Assets Seller Submitted Category Submissions Advertising & Content Distribution 107 117 239 Artificial Intelligence (AI) & Machine Learning (ML) 28 31 135 Augmented (AR) & Virtual Reality (VR) 56 73 157 Automotive & Mobility 76 102 232 Blockchain & Financial Services 23 28 59 Followed by Software with 136 submissions and 179 patent families Cloud Computing & Web Services 119 122 248 Computer Software & Hardware 136 179 307 Health Tech & Healthcare IT 29 39 91 Internet of Things (IoT) & Smart Home 64 81 193 Cloud Computing & Web Services, and Advertising & Content Distribution both had over 100 submissions and patent families. LED Lighting & Optoelectronics 53 94 253 Location-Based Services (LBS) / Navigation 62 94 168 Medical Devices & Imaging 64 88 223 Semiconductor Manufacturing & Equipment 4 4 17 Wireless & Telecommunication 231 259 494 Grand Total 1,052 1,311 2,816 5 Source: AST - IP3 2019

IP3 2019 Price Expectations - $1,000 to $350M Median Seller s Price Expectation = $100,000 Sellers Prices (Per Submission) 94% of offerings were under $500K 35 submissions over $1M 67 submissions over $500K 250 225 Average Price per Submission Less than $500K $118K Less than $1M $138K 200 146 145 Average price is slightly higher than IP3 2018 150 131 120 Top Values Lots 100 75 $100,000 156 $25,000 90 49 50 $50,000 85 35 28 21 $75,000 59 19 17 14 14 13 $125,000 58 0 $150,000 44 $90,000 42 $200,000 33 $250,000 25 6 Source: AST - IP3 2019

What was Purchased? 45 AST Deals purchased in IP3 which comprised 113 active patent filings in 53 families 91 US Patents, 6 US Applications 16 foreign patents 2 CN, 1 DE, 3 EP, 1 FR, 2 GB, 1 JP, 1 KR, 5 TW Average 2.5 assets per family (compared to 1.7 in 2018 and 3.6 in 2017) 28 deals with 1 US patent, 9 deals with 2 US patents, 8 deals with 3+ US patents 9 deals - each with at least one foreign patent 34 different sellers and 8 brokers 22 out of 45 purchased deals were from Brokers/Intermediaries Type of Sellers 16 deals from Non-Practicing Entities/Patent Holding Companies 14 deals from Practicing Entities 10 deals from Individual Inventors 5 deals from Universities and R&D Institutes 7 Source: AST - IP3 2019

45 IP3 Deals Purchased - $1,000 to $450,000 Average Purchase Price for IP3 = $107,933 Seller s Prices: Purchased vs. All Submissions Median purchase price Per Deal - $90,000 Per Family - $75,00 12 250 225 10 200 8 146 145 Average purchase price Per Deal - $107,933 Per Family - $95,526 150 131 120 6 100 75 4 49 50 35 28 2 21 19 17 14 14 13 10 3 3 9 6 6 4 2 1 1 1 0 0 Purchased Lots All IP3 Lots 8 Source: AST - IP3 2019

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