[Federal Register Volume 79, Number 96 (Monday, May 19, 2014)]
[Notices]
[Pages 28715-28729]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-11484]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Notice; request for comments.

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SUMMARY: The FTC proposes to collect information about Patent Assertion 
Entity (``PAE'') organization, structure, economic relationships, and 
activity, including acquisition, assertion, litigation, and licensing 
practices. This is the second of two Federal Register Notices required 
by the Paperwork Reduction Act (``PRA''). Last year, the FTC published 
a Federal Register Notice (``First Notice'') and received public 
comments on its proposal. Through this Second Notice, the Commission 
seeks additional public comments on, and Office of Management and 
Budget (``OMB'') review and approval of, the revised proposed 
collection of information discussed in this Notice.

DATES: Comments must be received on or before June 18, 2014.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment sub-section of 
the SUPPLEMENTARY INFORMATION section below. Write ``PAE Reports: 
Paperwork Comment; Project No. P131203'' on your comment, and file your 
comment online at https://ftcpublic.commentworks.com/ftc/paestudypra2, 
by following the instructions on the web-based form. If you prefer to 
file your comment on paper, mail your comment to the following address: 
Federal Trade Commission, Office of the Secretary, 600 Pennsylvania 
Avenue NW., Suite CC-5610, (Annex J), Washington, DC 20580, or deliver 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, 
Suite 5610, (Annex J), Washington, DC 20024.
    Comments on the proposed collection of information should also be 
submitted to OMB. If sent by U.S. mail, they should be addressed to 
Office of Information and Regulatory Affairs, Office of Management and 
Budget, Attention: Desk Officer for the Federal Trade Commission, New 
Executive Office Building, Docket Library, Room 10102, 725 17th Street 
NW., Washington, DC 20503. Comments sent to OMB by U.S. postal mail, 
however, are subject to delays due to heightened security precautions. 
Thus, comments instead should be sent by facsimile to (202) 395-5167.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be addressed to Suzanne Munck, Chief Counsel for Intellectual 
Property and Deputy Director, Office of Policy Planning, Federal Trade 
Commission, 600 Pennsylvania Avenue NW., Washington, DC 20580; (202) 
326-2429; [email protected].

SUPPLEMENTARY INFORMATION: The proposed collection of information is 
necessary to study the likely competitive effects of PAE activity. PAEs 
are firms with a business model based primarily on purchasing patents 
and then attempting to generate revenue by litigating against, or 
licensing to, persons who are already practicing the patented 
technology. Currently, the public record of PAE activity focuses on 
publicly-available litigation data. Litigation, however, is only part 
of the picture. PAE activity encompasses a wide range of non-public 
behavior related to acquisition and licensing practices, together with 
structural issues related to organization and economic relationships. 
Data analyzing this behavior is not available through the public record 
and it is not available from a single private source.
    Members of Congress support the FTC's proposed study. Urging the 
Commission, ``to address the abusive practices of patent assertion 
entities (PAEs) that are a drag on innovation, competition, and our 
economy,'' Senator Klobuchar ``appreciate[s] Chairwoman Ramirez's 
intention to ask the full Commission to commence a study under Section 
6(b) of the Federal Trade Commission (FTC Act).'' Representative 
Lipinski ``strongly urge[s] the FTC to follow through with [a Section 
6(b) study of PAE activity],'' and Representative Murphy ``looks 
forward to reviewing the results of [the FTC's] inquiry.''
    PAE activity is a growing issue for the United States. For example, 
last June, the Executive Office of the President reported that ``suits 
brought by PAEs have tripled in just the last two years, rising from 29 
percent of all infringement suits to 62 percent of all infringement 
suits,'' and this activity may have ``a negative impact on innovation 
and economic growth.'' In February of this year, the President renewed 
his call for legislation to combat abusive PAE practices, and several 
bills are pending in Congress addressing reforms directed toward PAE 
activity.
    The Commission has studied PAE activity for several years, and its 
research points to the need for an empirical record addressing non-
public PAE activity. The Commission first discussed the rise of the PAE 
business model in its 2011 Report, ``The Evolving IP Marketplace: 
Aligning Patent Notice and Remedies with Competition.'' In that report, 
the Commission defined a PAE as a firm with a business model

[[Page 28716]]

focused primarily on purchasing and asserting patents, typically 
against operating companies with products currently on the market. On 
December 10, 2012, the Commission and the Antitrust Division of the 
United States Department of Justice (DOJ) jointly sponsored a workshop 
to explore the claimed harms and efficiencies of PAE activity, and the 
impact of PAE activity on innovation and competition more broadly.
    Workshop panelists and commenters associated with the 2011 Report 
and the 2012 workshop provided anecdotal evidence of potential harms 
and efficiencies of PAE activity. These participants stressed the lack 
of comprehensive empirical evidence, and urged the Federal Trade 
Commission use its Section 6(b) to collect information on PAE 
acquisition, litigation, and licensing practices. Respondents to the 
Commission's first Federal Register Notice announcing the study 
likewise stressed the need for Commission research in this area.
    The Government Accountability Office (GAO) has also recognized 
deficiencies in the existing record of non-public PAE activity. As part 
of the America Invents Act, Congress directed GAO to study the costs, 
benefits, and economic impact of PAE litigation, and to make policy 
recommendations. GAO issued its report on August 22, 2013. It found 
that over the period 2007 to 2011, the share of all patent lawsuits 
accounted for by PAEs rose from 17 percent to 24 percent, and that 
suits by PAEs included about twice as many defendants as suits by 
manufacturing companies. GAO, however, emphasized several data 
deficiencies that limited its ability to examine the issues identified 
by Congress. First, although it reported that patent assertions 
frequently do not result in litigation, GAO could not obtain reliable 
data on such assertions. Second, GAO could not collect information on 
litigation costs from court records or the sample data, nor obtain 
information on the settlements that resolve most cases.
    Responding to these requests, and recognizing its own role in 
competition policy and advocacy, the Commission proposes a Section 6(b) 
study that will provide a better understanding of the organizational 
structure and economic relationships of PAEs, as well as their activity 
and associated costs and benefits. The Commission will use the study to 
publish a report describing non-public PAE activity that would 
otherwise not be available.

I. Public Comments/Consultation Outside the Agency and Actions Taken

    On October 3, 2013, the FTC published the First Notice soliciting 
public comments on this study of PAE activity. The FTC received 70 
public comments from a wide range of parties including individuals, 
firms, and trade associations. The majority of commenters expressed 
support for the goals of the FTC's study and recognized that the data 
necessary to understand the scope and economic implications of PAE 
activity is not currently available. Consistent with the December 2012 
workshop comments, some respondents focused on the possible harms of 
PAE activity, whereas others focused on the possible efficiencies of 
PAE models.
    Many commenters stated that the benefits of the study would 
outweigh the costs to subjects of compliance. Commenters, however, did 
not agree on the precise financial burden the study would impose. Some 
stated that the FTC's initial burden estimates were accurate, whereas 
others suggested that the estimates were too low. The FTC has addressed 
these comments in its revised estimates of financial burden.
    Some commenters expressed confusion regarding the questions 
directed to PAEs and the questions directed to manufacturers and NPEs. 
The FTC clarifies that the study will consist of two parts. The primary 
focus of the study consists of a descriptive examination of the PAE 
business model. The second part is a narrowly focused comparative case 
study of PAE activity in the wireless communications sector. 
Consequently, the FTC separated the questions addressed to PAEs from 
the questions addressed to manufacturers and NPEs.
    In the original information requests, the Commission requested 
production of all documents in many categories, such as a PAE's 
internal patent valuations, assertion strategy documents, 
communications with targets of assertion, and analyses of patent 
portfolios. Several commenters suggested that an ``all documents'' 
request would result in voluminous and duplicative information. In 
response, the revised requests focus on agreements and on strategic 
documents provided to officers and directors or shared with persons 
outside the firm.
    The original requests also required subjects to identify patents 
subject to commitments such as licensing and standard-setting 
declarations. Commenters suggested that these requests may be unduly 
burdensome when the firm has made commitments on a field of use or 
subject matter basis--without identifying specific patent numbers. 
Commenters also suggested that the original requests may require 
respondents to conduct legal research to determine whether specific 
patents are subject to broad commitments. To address these comments, 
the FTC will ask respondents to describe the commitments as they have 
been declared to standard-setting organizations and third parties.
    In response to additional comments addressing burden, the FTC has 
modified some of the defined terms and refined the information requests 
to more accurately target information that is most likely to be 
important for the study. The FTC also has revised the date range of the 
information requests from the period beginning January 1, 2008 to the 
period beginning January 1, 2009.
    Finally, the Commission worked with the United States Patent and 
Trademark Office (USPTO) to collect USPTO's publicly available data. 
Wherever practical, to reduce respondents' burden, the FTC will not ask 
for responses that are publicly available through the USPTO.

II. Description of the Collection of Information and Proposed Use

    The proposed study will add significantly to the existing 
literature and evidence about PAE form, structure, organization, and 
behavior. Earlier studies have focused primarily on publicly-available 
litigation data and concluded that PAE litigation activity is on the 
rise. The Commission, however, has unique Congressional authority to 
collect nonpublic information, such as licensing agreements, patent 
acquisition information, and cost and revenue data, that will provide a 
more complete picture of PAE activity.
    Because the Commission believes a more detailed study will enhance 
the quality of the policy debate surrounding PAE activity, it proposes 
information requests directed to answering the following questions:
     How do PAEs organize their corporate legal structure, 
including parents, subsidiaries, and affiliates?
     What types of patents do PAEs hold and how do they 
organize their holdings?
     How do PAEs acquire patents; who are the prior patent 
owners; and how do they compensate prior patent owners?
     How do PAEs engage in assertion activity (i.e., how do 
they behave with respect to demands, litigation, and licensing)?
     What does assertion activity cost PAEs?

[[Page 28717]]

     What do PAEs earn through assertion activity? and
     How does PAE patent assertion behavior compare to that of 
other entities that assert patents?
    The FTC's study will consist of two parts. The primary focus of the 
study consists of a broad descriptive examination of the PAE business 
model. The second part is a narrowly focused comparative case study of 
patent assertion activity in the wireless communications sector. The 
information requests for each part are identified below.
    For the broad analysis, the FTC proposes sending information 
requests to approximately 25 PAEs that use different organizational 
models and assertion strategies. For instance, the proposed requests 
seek information on the composition of PAE portfolios (information such 
as the age and field of patents); whether any patents are essential to 
any standards or encumbered by other licensing obligations; the costs 
of acquiring patents, as well as whether the PAEs share an economic 
interest in their portfolios with other entities. The requests also 
seek information about assertion activity, such as licensing and 
litigation activity, and the costs from assertion.
    The second part of the study compares how PAEs, manufacturing firms 
and NPEs assert intellectual property in the wireless communications 
sector. For example, the FTC seeks to explore whether the potential for 
countersuit against manufacturing firms changes their respective 
assertion behavior relative to PAE firms. While some commenters 
suggested expanding the scope of the comparative case study, the FTC 
proposes limiting that case study to the wireless communications sector 
because that sector is relatively well-defined with a significant 
amount of assertion activity by PAEs, manufacturing firms, and NPEs. 
This limitation also permits the FTC to achieve its goal of performing 
a comparative analysis of assertion behavior without imposing an undue 
burden on study subjects. The FTC proposes sending information requests 
to approximately 15 manufacturing firms and NPEs asserting patents in 
this sector.

Definitions and Instructions

    The following definitions and instructions apply to all Information 
Requests:
    ``Acquire'' and ``Acquisition'' mean to purchase or obtain from 
another Person any Legal Right to a Patent, or to purchase or obtain a 
Person who Holds any Legal Right to a Patent. This definition does not 
include the assignment of Legal Rights to a Patent by a Firm employee 
who is bound to assign his or her Legal Rights to the Firm at the time 
of invention.
    ``Assert'' and ``Assertion'' mean: (i) Any Demand; (ii) any civil 
action threatened or commenced (by the Firm or other Person) relating 
to any Patent; or (iii) any investigation pursuant to 19 U.S.C. 1337 
threatened or initiated (by the Firm or other Person) relating to any 
Patent. For Manufacturing Firms, ``Assert'' and ``Asserted'' do not 
include sales of products manufactured by the Firm, or on behalf of the 
Firm, that practice the claimed invention.
    ``Class'' and ``Subclass'' have the meanings defined by the United 
States Patent and Trademark Office (USPTO).
    ``Demand'' means any effort since January 1, 2009 to License any 
Patent, in whole or in part, and any other attempt to generate revenue 
by authorizing a Person outside the Firm to practice an invention 
claimed in a Patent. Demand does not include complaints or pleadings 
filed with a United States District Court or the United States 
International Trade Commission.
    ``Documents'' means all electronically stored information, and 
written, recorded, and graphic materials of every kind in the 
possession, custody, or control of the Firm. Unless otherwise 
specified, the term ``Documents'' excludes: (i) Bills of lading, 
invoices, purchase orders, customs declarations, and other similar 
documents of a purely transactional nature; (ii) architectural plans 
and engineering blueprints; and (iii) documents solely relating to 
environmental, human resources, OSHA, or ERISA compliance.
    ``Economic Interest'' means any right or claim to current or future 
revenues derived from a Patent, including, but not limited to: Lump-sum 
payments; royalties; access to other Patent(s) as part of a cross-
Licensing agreement; a debt or equity interest in a Person that Asserts 
Patents; use of the Firm's Legal Rights to any Patent as collateral for 
a Person's loan or investment; or any other form of compensation 
relating to the Assertion, Acquisition, or Transfer of Patents Held by 
the Firm. ``Economic Interest'' does not include shareholders of 
publicly traded Firms that own less than 5% of the outstanding shares 
of any class of stock in the Firm.
    ``Firm'' means the Person served with the information requests 
described in this notice.
    ``Hold'' and ``Held'' mean to possess a Legal Right to a Patent.
    ``Legal Right'' means any ownership interest in, an exclusive 
License to, or other rights adequate to License or enforce a Patent.
    ``Litigation'' means any civil action commenced in a United States 
District Court or with the United States International Trade 
Commission.
    ``License'' means authorization by the Patent holder to practice 
the claimed invention, including, but not limited to, a covenant not to 
sue and a covenant not to assert.
    ``Maintenance Fee(s)'' has the meaning defined by the USPTO.
    ``Patent'' means a United States patent or United States patent 
application as defined by 35 U.S.C. 101, et seq.
    ``Patent Portfolio'' means a collection of patents Held by the 
Firm, including all of the patents Held by the Firm and any sub-groups 
into which the Firm organizes its patents.
    ``Person'' means any natural person, corporation, association, 
firm, partnership, joint venture, trust, estate, agency, department, 
bureau, governmental, judicial, or legal entity, however organized or 
established.
    ``Reference Number'' means a Bates number or other sequential 
identification number.
    ``Report'' means all studies, analyses, and reports which were 
prepared by or for any officer(s) or director(s) of a corporate entity 
(or, in the case of unincorporated entities, individuals exercising 
similar functions) or presented to any Person outside the Firm 
(including, but not limited to, investment presentations and documents 
filed with the United States Internal Revenue Service or Securities and 
Exchange Commission).
    ``Standard Setting Organization'' or ``SSO'' means any 
organization, group, joint venture, or consortium that develop 
standards for the design, performance, or other characteristics of 
products or technologies.
    ``Transfer'' means the sale or exchange of any Legal Right to a 
Patent, including for monetary or other consideration or for no 
compensation.
    ``Wireless Chipset'' means any baseband processor, radio frequency 
transceiver, integrated circuit, chip, or chipset, or any combination 
thereof, and any related software, used to implement wireless 
communication.
    ``Wireless Communications Device'' means any device, including 
wireless chipsets, which implements wireless communication, including, 
but not limited to, software, user equipment, base stations, and 
network infrastructure.

[[Page 28718]]

    ``Wireless Patent'' means any Patent Asserted against a Wireless 
Communication Device.
    The Information Requests sent to Respondents will also have 
procedural instructions, not included here.
    Information Requests Directed to Approximately 25 PAE Firms:
    The FTC will have PAE Firms respond to the following Information 
Requests:
A. Identification of Report Author
    Identify by full name, title, business address, telephone number, 
email address, and official capacity the Person(s) who prepared or 
supervised the preparation of the Firm's response to the Information 
Requests.
B. Firm Information
    1. State the Firm's complete legal name and all other names under 
which it has done business since January 1, 2009, its corporate mailing 
address, all addresses and Web sites from which it does or has done 
business since January 1, 2009, and the date(s) and state(s) of its 
incorporation.
    2. Describe the Firm's business and corporate structure; provide an 
organizational chart stating the names of all parents, wholly or 
partially owned subsidiaries, incorporated or unincorporated divisions, 
affiliates, branches, joint ventures, franchises, operations under 
assumed names, Web sites, or other Person(s) over which the Firm 
exercises or has exercised supervision or control since January 1, 
2009. When responding to these Information Requests, separately provide 
all information for the Firm and each related Person(s) identified in 
response to Request B2.
    3. Has more than one Person identified in response to Request B2 
engaged in Assertions against the same Person? (Y/N) If yes, name the 
Person(s) identified in response to Request B2 that made the 
Assertions, name the Person subject to the Assertions, state the date 
of each Assertion; and identify the Patent(s) related to each 
Assertion.
    4. Identify each Person(s) with a contractual or other legal right 
or obligation to a share of revenues, profits, costs or other Economic 
Interest in the Firm. For each such Person, describe the Person's 
relationship with the Firm, including their percentage of ownership, 
control, or other legal entitlement to a share of revenues, profits or 
financial performance of the Firm and, if relevant, their positions and 
responsibilities within the Firm.
C. Patent Information
    1. For each Patent Held by the Firm since January 1, 2009
    a. State the Person within the Firm who Holds the Patent, e.g. if 
the Patent is Held by a Firm subsidiary, state the subsidiary.
    b. State the Patent number.
    c. State the Patent's priority date.
    d. State the application to which the Patent claims earliest 
priority.
    e. Does the Patent expire either 17 years from the date of 
issuance, if the Patent was filed before June 7, 1995, or 20 years from 
the priority date, if the Patent was filed after June 7, 1995? (Y/N) If 
no:
    (1) State the Patent's expiration date; and
    (2) produce, and provide a narrative response that identifies by 
Reference Number, Documents sufficient to demonstrate the Patent's 
expiration date.
    f. Has the Patent been subject to review by the Patent and 
Trademark Office since January 1, 2009? (Y/N) If yes:
    (1) Provide the docket number for each review.
    g. Do(es) any Person(s) outside the Firm Hold any Legal Rights to 
the Patent? (Y/N) If yes:
    (1) Identify the Person(s) who Hold(s) any Legal Rights to the 
Patent;
    (2) for each Person identified above, provide a narrative response 
that identifies and describes the Legal Rights Held; and
    (3) produce, and provide a narrative response that identifies by 
Reference Number, all agreements relating to the Legal Rights Held.
    h. Do(es) any Person(s) outside the Firm Hold an Economic Interest 
in the Patent? (Y/N) If yes:
    (1) Identify the Person(s) who Hold(s) any Economic Interest in the 
Patent;
    (2) for each Person identified above, provide a narrative response 
that identifies and describes the Economic Interest Held; and
    (3) produce, and provide a narrative response that identifies by 
Reference Number, all agreements relating to the Economic Interest 
Held.
    i. Does the Firm have an exclusive License to the Patent? (Y/N) If 
yes:
    (1) Produce, and provide a narrative response that identifies by 
Reference Number, the agreement(s) providing the exclusive License;
    (2) produce, and provide a narrative response that identifies by 
Reference Number, all Reports that evaluate or analyze the Firm's 
reasons for entering into the exclusive License;
    (3) if the exclusive License is limited by geography, list the 
geographic restrictions; and
    (4) if the exclusive License is limited by field of use:
    (a) State the specific field of use restriction; and
    (b) identify, from the following list, in which sector(s) is the 
field of use restriction: Chemical, Computers & Communications, Drugs & 
Medical, Semiconductors, Other Electrical & Electronic, Mechanical, or 
Other.
    j. Has the Firm Asserted the Patent? (Y/N) If yes:
    (1) State whether the patent is a Wireless Patent; and
    (2) identify, from the following list, in which sector(s) the 
Patent was Asserted: Chemical, Computers & Communications, Drugs & 
Medical, Semiconductors, Other Electrical & Electronic, Mechanical, or 
Other.
    k. Has the Firm included the Patent in any Demand? (Y/N)
    l. Has the Firm brought Litigation involving the Patent? (Y/N)
    m. Has the Firm Licensed the Patent to any Person(s)? (Y/N)
    n. Has the Firm, or any other Person, assigned a value to the 
Patent? (Y/N) If yes:
    (1) State the date of the most recent valuation;
    (2) state the amount of the most recent valuation;
    (3) provide a narrative response identifying, by date and amount, 
all prior valuations by, or on behalf of, the Firm; and
    (4) produce, and provide a narrative response that identifies by 
Reference Number, all related Reports.
    o. State the number of known Assignments of the Patent before the 
Patent was Acquired by the Firm. As part of your response do not 
include the assignment of Legal Rights to a Patent by a Firm employee 
who is bound to assign Legal Rights to the Firm at the time of 
invention.
    p. Provide a narrative response identifying all Person(s) to whom 
the Patent was assigned before the Firm Acquired the Patent and the 
date(s) of each assignment.
    q. State whether the Patent was Asserted in Litigation before the 
Firm Acquired the Patent. (Y/N) If yes:
    (1) State the number of times the Patent was Asserted in Litigation 
before the Firm Acquired the Patent;
    (2) produce, and provide a narrative response that identifies by 
Reference Number, all agreements relating to the Litigation, including 
License, settlement, and non-disclosure agreements; and
    (3) for each Litigation provide a narrative response:
    (a) Identifying the Person(s) who Asserted the Patent;

[[Page 28719]]

    (b) identifying the jurisdiction and docket number of each 
Litigation;
    (c) identifying all claims that were found infringed, valid, and 
enforceable;
    (d) stating whether an injunction or exclusion order issued; and
    (e) stating the amount of any damages awarded.
    2. To the extent not otherwise identified in response to the 
Information Requests, if the Firm has entered into any agreement since 
January 1, 2009 relating to any Economic Interest or Legal Right to any 
Patent Held by the Firm, for each agreement
    a. Submit the agreement, and provide a narrative response that 
identifies it by Reference Number; and
    b. Submit all Reports that evaluate or analyze the reasons for 
entering into the agreement, and provide a narrative response that 
identifies the Reference Number(s) of the Reports.
D. Standard Setting Commitments
    1. If any Person has committed to a Standard Setting Organization 
that it will License any Patent(s) Held by the Firm since January 1, 
2009, for each commitment
    a. State the date the commitment was made.
    b. Identify the Person who made the commitment.
    c. Identify the Standard Setting Organization.
    d. Identify the standard(s) to which the commitment applies.
    e. Provide a narrative response identifying any Wireless Patents 
held by the Firm that are subject to the commitment.
    f. State whether the commitment is to License the Patent(s) or any 
Patent claim(s) on reasonable and non-discriminatory (RAND); fair, 
reasonable, and non-discriminatory (FRAND); royalty-free (RF); or other 
terms.
    (1) if the commitment is to License on terms other than RAND, 
FRAND, or RF, provide a narrative response describing the terms.
    g. Is the commitment subject to a field of use restriction? (Y/N) 
If yes:
    (1) State the specific field of use restriction(s); and
    (2) identify, from the following list, in which sector(s) is the 
field of use restriction: Chemical, Computers & Communications, Drugs & 
Medical, Semiconductors, Other Electrical & Electronic, Mechanical, or 
Other.
    h. Provide a narrative response listing all Patent(s) that any 
Person has declared, or otherwise identified to any Person, as subject 
to the commitment.
    i. Produce, and provide a narrative response identifying by 
Reference Number, all agreements embodying the commitment.
E. Patent Portfolio Information
    1. For each Patent Portfolio Held by the Firm since January 1, 2009
    a. Has the Firm organized the Portfolio by field of use? (Y/N) If 
yes:
    (1) State the specific field of use; and
    (2) identify, from the following list, in which sector(s) is the 
field of use: Chemical, Computers & Communications, Drugs & Medical, 
Semiconductors, Other Electrical & Electronic, Mechanical, or Other.
    b. Does the Firm identify the Patent(s) included in the Patent 
Portfolio? (Y/N) If yes:
    (1) provide a narrative response stating the numbers of the Patents 
included in the Patent Portfolio.
    c. Has the Firm assigned a value to the Patent Portfolio? (Y/N) If 
yes:
    (1) State the date of the most recent valuation;
    (2) state the amount of the most recent valuation;
    (3) provide a narrative response identifying, by date and amount, 
all prior valuations by, or on behalf of, the Firm; and
    (4) produce, and provide a narrative response identifying by 
Reference Number, all related Reports.
    d. Produce, and provide a narrative response identifying by 
Reference Number, all Reports that evaluate how the Firm organizes and 
names the Portfolio and the Firm's reasons or business strategy for 
organizing the Patent Portfolio and for allocating specific Patent(s) 
into any identified Patent Portfolio.
    e. To the extent not identified above, provide a narrative response 
describing how the Firm organizes and names the Portfolio.
F. Patent Acquisition Information
    1. For each transaction in which the Firm Acquired Patent(s) since 
January 1, 2009
    a. State the date of the transaction.
    b. State the Person who Acquired the Patent(s).
    c. State the Person(s) from whom the Patent(s) were Acquired.
    (1) did the Firm Acquire the Patent(s) from a named inventor of the 
Patent? (Y/N)
    (2) did the Firm Acquire the Patent(s) from an employer of the 
named inventor? (Y/N)
    (3) did the Firm Acquire the Patent from a Person that the Firm 
identifies as a Patent Assertion Entity? (Y/N)
    d. State the total number of Patents Acquired in this transaction.
    e. Did the Firm Acquire any Wireless Patent(s) in this transaction? 
(Y/N)
    f. For each Patent Acquired in the transaction:
    (1) State the Patent Number.
    (2) did the Firm assign the Patent in connection with this 
transaction? (Y/N) If yes:
    (a) was the assignment recorded with the United States Patent and 
Trademark Office? (Y/N)
    (3) did the Firm obtain an exclusive License to the Patent in 
connection with the transaction? (Y/N)
    (4) did the Firm License the Patent back to its previous owner? (Y/
N)
    g. Did the Firm assume existing License obligations for the 
Patent(s)? (Y/N) If yes:
    (1) State the total number of License obligations assumed;
    (2) state the total revenue obtained by the Firm as a result of 
assuming existing License obligations to the date of this request; and
    (3) state the total revenue expected to be obtained by the Firm in 
the future as a result of assuming existing License obligations.
    h. Did the Firm Acquire the Patent(s) in connection with any 
proceeding before a United States Bankruptcy Court? (Y/N) If yes:
    (1) State the jurisdiction; and
    (2) state the docket number.
    i. For each Person receiving payment as a result of this 
transaction:
    (1) State the Person to whom the payment was made.
    (a) was the Person a named inventor of a Patent included in the 
transaction? (Y/N)
    (b) was the Person an employer of a named inventor of a Patent 
included in the transaction? (Y/N)
    (c) was the Patent(s) Acquired from the Person? (Y/N)
    (2) did the Firm make a lump-sum payment(s), i.e. a payment not 
directly affected by the Firm's future revenue or unit sales, to this 
Person to Acquire the Patents? (Y/N) If yes:
    (a) State the total amount of the lump-sum payment(s) made;
    (b) state the total amount of the lump-sum payment(s) expected to 
be made in the future;
    (c) if any agreement defines the lump-sum payment terms, produce, 
and provide a narrative response identifying by Reference Number, the 
agreement; and
    (d) provide a narrative response describing the method for 
calculating the payment.
    (3) did the Firm pay, or is the Firm expecting to pay, an on-going 
payment, i.e., a payment that is directly affected by either the Firm's 
future revenue or unit sales, to this Person to Acquire the Patent(s)? 
(Y/N) If yes:
    (a) State the total amount paid in on-going payments, by calendar 
year, to the date of this Request;

[[Page 28720]]

    (b) state the total amount from on-going payments expected to be 
made in the future derived from the Patents Acquired;
    (c) if any agreement defines the payment terms, produce, and 
provide a narrative response identifying by Reference Number, the 
agreement; and
    (d) provide a narrative response describing the method for 
calculating the past and future ongoing payment(s).
    j. Does the Acquisition involve a cross-License? (Y/N) If yes:
    (1) State the date of the cross-License agreement.
    (2) has the Firm assigned a value to the cross-License? (Y/N) If 
yes:
    (a) State the date of the most recent valuation;
    (b) state the amount of the most recent valuation;
    (c) provide a narrative response identifying, by date and amount, 
all prior valuations by, or on behalf of, the Firm; and
    (d) produce, and provide a narrative response identifying by 
Reference Number, all related Reports.
    (3) produce, and provide a narrative response identifying by 
Reference Number, the cross-License; and
    (4) produce, and provide a narrative response identifying by 
Reference Number, all related Reports.
    k. Did any Person outside the Firm financially contribute to the 
Acquisition? (Y/N) If yes:
    (1) State the Person(s) who contributed to the Acquisition;
    (2) state the total amount contributed by other Person(s) to the 
Acquisition;
    (3) state the total amount expected to be contributed by other 
Person(s) in the future as a result of the Acquisition;
    (4) produce, and provide a narrative response identifying by 
Reference Number, all related agreements;
    (5) produce, and provide a narrative response identifying by 
Reference Number, all related Reports; and
    (6) for each Person identified, provide a narrative response 
stating each Person's financial contribution, the method for 
calculating this amount, and each Person's Legal Right to the 
Patent(s).
    l. Do(es) any Person(s) outside the Firm Hold any Legal Rights to 
any of the Patents Acquired in this transaction? (Y/N) If yes:
    (1) State the Person(s) who Holds any Legal Rights to any Acquired 
Patents;
    (2) produce, and provide a narrative response identifying by 
Reference Number, all related agreements;
    (3) produce, and provide a narrative response identifying by 
Reference Number, all related Reports; and
    (4) for each Person identified, provide a narrative response 
identifying each Person's Legal Rights, and the Patent(s) to which the 
Person Holds each Legal Right.
    m. Produce, and provide a narrative response identifying by 
Reference Number, all Reports related to the Acquisition.
    n. Produce, and provide a narrative response identifying by 
Reference Number, all agreements related to the Acquisition.
    2. To the extent not identified in these Information Requests, 
produce, and provide a narrative response identifying by Reference 
Number, all agreements between the Firm and any Person executed since 
January 1, 2009 relating to any Acquisition by the Firm of any Legal 
Right to a Patent
    a. for any such agreement produced, also produce, and provide a 
narrative response identifying by Reference Number, all Reports that 
(i) evaluate or analyze the reasons for entering into the agreement or 
(ii) evaluate or analyze the calculation of any payment relating to the 
Acquisition.
G. Patent Transfer Information
    1. For each transaction in which the Firm Transferred Patent(s) 
since January 1, 2009
    a. State the date of the transaction.
    b. State the Person(s) who Transferred the Patent(s).
    c. State the Person(s) to whom the Patent(s) were Transferred.
    (1) did the Firm Transfer the Patent(s) to a Person that the Firm 
identifies as a Patent Assertion Entity? (Y/N)
    d. State the total number of Patent(s) Transferred in the 
transaction.
    e. Did the Firm transfer any Wireless Patent(s) in this 
transaction? (Y/N)
    f. For each Patent Transferred in the transaction:
    (1) State the Patent number.
    (2) did the Firm assign the Patent in connection with the 
transaction? (Y/N) If yes:
    (a) was the assignment recorded with the United States Patent and 
Trademark Office? (Y/N)
    (3) did the Firm grant an exclusive License to the Patent(s) in 
connection with the transaction? (Y/N)
    g. Did the Firm transfer existing License obligations to the 
Patent(s)? (Y/N) If yes:
    (1) State the total number of License obligations transferred; and
    (2) state the total revenue received by the Firm from these 
Licenses.
    h. Did the Firm Transfer the Patent(s) in connection with any 
proceeding before a United States Bankruptcy Court? (Y/N) If yes:
    (1) State the jurisdiction; and
    (2) state the docket number.
    i. Was the Firm paid a lump-sum payment(s), i.e. a payment not 
directly affected by the transferee's future revenue or unit sales, to 
Transfer the Patent(s)? (Y/N) If yes, for each Person making payments 
to the Firm:
    (1) State the Person from whom the payment(s) was received;
    (2) state the total amount of the lump-sum payment(s) received;
    (3) state the total amount of the lump-sum payment(s) expected to 
be received in the future;
    (4) if any agreement(s) define(s) the payment terms, produce, and 
provide a narrative response identifying by Reference Number, the 
agreement(s); and
    (5) provide a narrative response describing the method for 
calculating the payment(s).
    j. Did the Firm receive, or is it receiving, an on-going payment, 
i.e., a payment that is directly affected by either the transferee's 
future revenue or unit sales, from the Person(s) receiving the 
Patent(s)? (Y/N) If yes, for each Person making payments to the Firm:
    (1) State the Person(s) from whom the payment(s) are received;
    (2) state the total amount of the on-going payments received from 
this Person(s), by calendar year, made to the date of this Request;
    (3) state the total amount of on-going payments expected to be 
received in the future;
    (4) if any agreement(s) define(s) the payment terms, produce, and 
provide a narrative response identifying by Reference Number, the 
agreement(s); and
    (5) provide a narrative response describing the method for 
calculating the on-going payment(s).
    k. Does the Transfer involve a cross-License? (Y/N) If yes:
    (1) State the date of the cross-License agreement;
    (2) has the Firm assigned a value to the cross-License? (Y/N) If 
yes:
    (a) State the date of the most recent valuation;
    (b) state the amount of the most recent valuation;
    (c) provide a narrative response identifying, by date and amount,, 
all prior valuations by, or on behalf of, the Firm; and
    (d) produce, and provide a narrative response identifying by 
Reference Number, all related Reports.
    (3) produce, and provide a narrative response identifying by 
Reference Number, the cross-License; and
    (4) produce, and provide a narrative response identifying by 
Reference Number, all related Reports.

[[Page 28721]]

    l. Did any Person outside the Firm share in the proceeds from the 
Transfer? (Y/N) If yes:
    (1) State the Person(s) who shared in the proceeds from the 
Transfer;
    (2) state the total amount shared with other Person(s) to the date 
of this Request;
    (3) state the total amount expected to be shared with other 
Person(s) in the future;
    (4) produce, and provide a narrative response identifying by 
Reference Number, all related agreements;
    (5) produce, and provide a narrative response identifying by 
Reference Number, all related Reports; and
    (6) for each Person identified, provide a narrative response 
stating the amount shared with each Person, the amount expected to be 
shared in the future, and the method for calculating this amount.
    m. Produce, and provide a narrative response identifying by 
Reference Number, all Reports related to the Transfer.
    n. Produce, and provide a narrative response identifying by 
Reference Number, all agreements related to the Transfer.
    2. To the extent not identified in these Information Requests, 
produce, and provide a narrative response identifying by Reference 
Number, all agreements between the Firm and any Person executed since 
January 1, 2009 relating to any Transfer by the Firm of any Legal Right 
to a Patent.
    a. For any such agreement produced, also produce, and provide a 
narrative response identifying by Reference Number, all Reports that 
(i) evaluate or analyze the reasons for entering into the agreement or 
(ii) evaluate or analyze the calculation of any payment relating to the 
Acquisition.
H. Patent Assertion Information
    1. Demand Information: For each Demand made by, or on behalf of, 
the Firm since January 1, 2009.
    a. State the date of the Demand.
    b. State the Person(s) who made the Demand, e.g. the Firm or one of 
its related Person(s).
    c. State the Person(s) to whom the Demand was made.
    d. State the Patent(s) that formed the basis of the Demand.
    e. Did the Demand relate to a Wireless Patent? (Y/N)
    f. Identify, from the following list, in which sector(s) the Demand 
was made: Chemical, Computers & Communications, Drugs & Medical, 
Semiconductors, Other Electrical & Electronic, Mechanical, or Other.
    g. Was the Demand limited to geographic area(s)? (Y/N) If yes:
    (1) Identify the geographic area(s).
    h. State all accused product(s) relating to the Demand.
    i. Produce, and provide a narrative response identifying by 
Reference Number, a copy of each Demand Document and all appendices, 
including, but not limited to, claim charts, and all Reports related to 
the Demand.
    2. Litigation Information: For each Litigation commenced since 
January 1, 2009 relating to a Patent Held by the Firm, or a Patent in 
which the Firm has an Economic Interest, separately for each Person 
(collectively including its parents, subsidiaries, and affiliates) 
named as a defendant (if the Firm is a plaintiff) or as a declaratory 
judgment plaintiff (if the Firm is a defendant).
    a. State the jurisdiction in which the Litigation was commenced.
    b. State the docket number of the Litigation.
    c. State the date the Litigation was commenced.
    d. State all plaintiffs named or otherwise joined in the 
Litigation.
    e. State the defendant (including parents, subsidiaries, and 
affiliates) named or otherwise joined in the Litigation.
    f. State all Patents Asserted.
    g. Was any Patent Asserted a Wireless Patent? (Y/N)
    h. Identify, from the following list, in which sector(s) the 
Patents were asserted: Chemical, Computers & Communications, Drugs & 
Medical, Semiconductors, Other Electrical & Electronic, Mechanical, or 
Other.
    i. Produce, and provide a narrative response identifying by 
Reference Number, all orders relating to all dispositive motions.
    j. Produce, and provide a narrative response identifying by 
Reference Number, all expert reports exchanged during Litigation that 
offer an opinion related to the valuation of the Patent(s) or damages 
relating to the Litigation.
    k. Is the Litigation pending? (Y/N) If no:
    (1) State the date of termination.
    (2) state whether the Litigation terminated upon successful 
dispositive motion, jury verdict, judgment following trial on the 
merits, appeal, settlement, or other (if other, explain).
    (3) provide a narrative response identifying all Patent claims 
found infringed, valid, and enforceable.
    (4) did a permanent injunction, exclusion order, or cease and 
desist order issue? (Y/N)
    (5) did the court award damages? (Y/N) If yes:
    (a) State the amount awarded; and
    (b) state the amount actually paid to the prevailing party.
    (6) did the court award fees pursuant to 35 U.S.C. 285? (Y/N) If 
yes:
    (a) State the fees awarded; and
    (b) state the amount actually paid to the prevailing party.
    (7) did the court issue sanctions pursuant to Rule 11 of the 
Federal Rules of Civil Procedure? (Y/N)
    (8) did the Litigation terminate upon exhaustion of appellate 
process? (Y/N)
    l. Did the Litigation settle? (Y/N) If yes:
    (1) Did the settlement result in a License agreement? (Y/N) If yes:
    (a) State the date of the License agreement;
    (b) state the Licensee; and
    (c) state the Licensor.
    (2) when was settlement reached: after the complaint was filed; 
after a successful dispositive motion, after a jury verdict, after 
judgment following trial on the merits, after appeal, or other (if 
other, explain)?
    (3) did the Court issue an order construing any claim(s) of the 
Patent(s) Asserted before settlement was reached? (Y/N) If yes:
    (a) Produce, and provide a narrative response identifying by 
Reference Number, the order.
    (4) state the total revenue the Firm has received under the terms 
of the settlement agreement from January 1, 2009 to the date of this 
Request. Do not report revenue reported for any License identified in 
response to H.3 below.
    (a) was any part of this revenue received as a lump-sum payment, 
i.e. a payment not directly affected by the defendant's future revenue 
or unit sales? (Y/N) If yes:
    (1) State the total revenue the Firm has received to the date of 
this request in lump-sum payments; and
    (2) state the total revenue the Firm expects to receive in the 
future in lump-sum payments.
    (b) was any part of this revenue received as an on-going payment, 
i.e., a payment that is directly affected by either the defendant's 
future revenue or unit sales? (Y/N) If yes:
    (1) State the total revenue the Firm has received to the date of 
this request in on-going payments; and
    (2) state the total revenue the Firm expects to receive in the 
future as on-going payments.
    (c) is this revenue shared with anyone outside the Firm? (Y/N) If 
yes:
    (1) State the total amount shared outside the Firm.
    (2) if the revenue is part of an ongoing payment, state the total 
amount the Firm expects to share in the future.
    (3) is any revenue shared pursuant to a contingency fee or risk-
sharing agreement? (Y/N) If yes:

[[Page 28722]]

    (A) State the total amount shared pursuant to a contingency fee or 
risk-sharing agreement;
    (B) state the Person(s) outside the Firm who is party to the 
agreement; and
    (C) provide a narrative response stating the amount the Firm shared 
with each Person, the amount the Firm expects to share in the future, 
and describing the method for calculating this amount.
    (4) state all Person(s) with whom this revenue is shared.
    (A) are any of these Person(s) the named inventor of any Patent 
Asserted in the Litigation? (Y/N)
    (B) are any of these Person(s) the employer of the named inventor 
of any Patent Asserted in the Litigation? (Y/N)
    (5) produce, and provide a narrative response identifying by 
Reference Number, all revenue sharing agreements.
    (6) provide a narrative response stating the amount shared with 
each Person and describing the method for calculating this amount.
    m. State the Firm's total expenses relating to the Litigation from 
January 1, 2009 to the date of this Request.
    (1) are these expenses shared with any Person(s) outside the Firm? 
(Y/N) If yes:
    (a) State the total amount of expenses shared outside the Firm;
    (b) identify all Person(s) with whom expenses are shared;
    (c) produce, and provide a narrative response identifying by 
Reference Number, all expense sharing agreements;
    (d) produce, and provide a narrative response identifying by 
Reference Number, all Reports related to all expense sharing 
agreements; and
    (e) provide a narrative response stating the amount shared with 
each Person and describing the method for calculating this amount.
    n. State all projected revenues relating to the Litigation from the 
date of this Request.
    (1) provide a narrative response describing the method for 
calculating the projected revenue, e.g. as a fraction of revenue or a 
fee per unit sold.
    o. To the extent not identified above, produce, and provide a 
narrative response identifying by Reference Number, all agreements 
related to the Litigation and produce, and provide a narrative response 
identifying by Reference Number, all Reports related to the Litigation.
    3. License Information: For each License executed since January 1, 
2009 relating to a Patent Held by the Firm or a Patent in which the 
Firm has an Economic Interest
    a. Who is the Licensor(s)?
    b. Who is the Licensee(s)?
    c. Identify all Patent(s) Licensed.
    d. What is the effective date of the License agreement?
    e. Does the License relate to a Patent Held by the Firm? (Y/N)
    f. Does the License relate to a Wireless Patent Held by the Firm? 
(Y/N)
    g. Does the License relate to a Patent in which the Firm has an 
Economic Interest? (Y/N)
    h. Does the License relate to a Wireless Patent in which the Firm 
has an Economic Interest? (Y/N)
    i. For each Litigation related to the License:
    (1) State the jurisdiction in which the Litigation was commenced.
    (2) state the docket number of the Litigation.
    j. Does the License contain a field of use restriction? (Y/N) If 
yes:
    (1) State the specific field of use restriction; and
    (2) identify, from the following list, in which sector(s) is the 
field of use restriction: Chemical, Computers & Communications, Drugs & 
Medical, Semiconductors, Other Electrical & Electronic, Mechanical, or 
Other.
    k. Does the License contain a geographic restriction? (Y/N) If yes:
    (1) Identify the geographic restriction(s).
    l. State the duration of the License agreement?
    m. State the Licensed products or services.
    n. Does the License include any cross-License? (Y/N) If yes:
    (1) has the Firm assigned a value to the cross-License? (Y/N) If 
yes:
    (a) State the date of the most recent valuation; and
    (b) state the amount of the most recent valuation; and
    (c) provide a narrative response identifying by date and amount all 
prior valuations by, or on behalf of, the Firm; and
    (d) produce, and provide a narrative response identifying by 
Reference Number, all related Reports.
    (2) produce, and provide a narrative response identifying by 
Reference Number, the cross-License.
    (3) provide a narrative response identifying the number of Patents 
cross-Licensed, as well as whether the cross-License is exclusive, 
whether there are any geographic limitations to the cross-License, 
whether there are any field of use limitations to the cross-License, 
and whether the field of use restriction is in the following sectors: 
Chemical, Computers & Communications, Drugs & Medical, Semiconductors, 
Other Electrical & Electronic, Mechanical, or Other.
    o. State the total revenue the Firm has received under the terms of 
the License from January 1, 2009 to the date of this Request.
    (1) was any part of this revenue received as a lump-sum payment, 
i.e. a payment not directly affected by the defendant's future revenue 
or unit sales? (Y/N) If yes:
    (a) State the total revenue the Firm has received to the date of 
this request in lump-sum payments.
    (2) was any part of this revenue received as an on-going payment, 
i.e., a payment that is directly affected by either the defendant's 
future revenue or unit sales? (Y/N) If yes:
    (a) State the total revenue the Firm has received to the date of 
this request in on-going payments.
    (3) is this revenue shared with anyone outside the Firm? (Y/N) If 
yes:
    (a) State the total amount shared outside the Firm.
    (b) if the revenue is part of an ongoing payment, state the total 
amount the Firm expects to share in the future.
    (c) state all Person(s) with whom this revenue is shared.
    (1) are any of these Person(s) the named inventor of any of the 
Licensed Patents? (Y/N)
    (2) are any of these Person(s) the employer of the named inventor 
of any of the Licensed Patents? (Y/N)
    (d) produce, and provide a narrative response identifying by 
Reference Number, all revenue sharing agreements.
    (e) provide a narrative response stating the amount the Firm shared 
with each Person and the amount the Firm expects to share in the future 
and describing the method for calculating this amount.
    p. State the Firm's total expenses relating to the License 
agreement from January 1, 2009 to the date of this Request.
    (1) are these expenses shared with any Person(s) outside the Firm? 
(Y/N) If yes:
    (a) State the total amount of expenses shared outside the Firm;
    (b) identify all Person(s) with whom expenses are shared;
    (c) produce, and provide a narrative response identifying by 
Reference Number, all expense sharing agreements;
    (d) produce, and provide a narrative response identifying by 
Reference Number, all Reports related to all expense sharing 
agreements; and
    (e) provide a narrative response stating the amount of expenses 
shared with each Person and describing the method for calculating this 
amount.
    q. State all projected revenues relating to the License from the 
date of this Request.

[[Page 28723]]

    (1) provide a narrative response describing the method for 
calculating the projected revenue, e.g. as a fraction of revenue or a 
fee per unit sold.
    r. Produce, and provide a narrative response identifying by 
Reference Number, all Reports related to the License.
    s. Produce, and provide a narrative response identifying by 
Reference Number, all agreements related to the License.
    4. To the extent not identified above, produce, and provide a 
narrative response identifying by Reference Number, all agreements 
related to any Assertion relating to a Patent Held by the Firm, or a 
Patent in which the Firm has an Economic Interest and produce, and 
provide a narrative response identifying by Reference Number, all 
related Reports
I. Aggregate Cost Information
    1. Separately, for each year since January 1, 2009
    a. State the total cost to the Firm relating to all Acquisitions 
identified in response to Request F.
    (1) did the Firm share Acquisition costs with Person(s) outside the 
Firm? (Y/N) If yes:
    (a) State all Person(s) with whom these costs are shared;
    (b) state the total amount paid by Person(s) outside the Firm; and
    (c) state the total amount paid by the Firm.
    b. State the total cost to the Firm relating to all Litigations 
identified in response to Request H.2.
    (1) did the Firm share Litigation costs with Person(s) outside the 
Firm? (Y/N) If yes:
    (a) State all Person(s) with whom these costs are shared;
    (b) state the total amount paid by Person(s) outside the Firm; and
    (c) state the total amount paid by the Firm.
    c. State the total cost to the Firm relating to all Licenses 
identified in response to Request H.3.
    (1) did the Firm share License costs with Person(s) outside the 
Firm? (Y/N) If yes:
    (a) State all Person(s) with whom these costs are shared;
    (b) state the total amount paid by Person(s) outside the Firm; and
    (c) state the total amount paid by the Firm.
    2. For all forecasted costs expected to be paid after the date of 
this Request
    a. State the total cost expected to be paid by the Firm relating to 
all Acquisitions identified in Request F.
    b. State the total cost expected to be paid by all other Person(s) 
outside the Firm relating to all Acquisitions identified in Request F.
    c. State the total cost expected to be paid by the Firm relating to 
all Litigations identified in Request H.2.
    d. State the total cost expected to be paid by all other Person(s) 
outside the Firm relating to all Litigations identified in Request H.2.
    e. State the total cost expected to be paid by the Firm relating to 
all License Agreements identified in Request H.3.
    f. State the total cost expected to be paid by all other Person(s) 
outside with the Firm relating to all License Agreements identified in 
Request H.3.
    g. Produce, and provide a narrative response identifying by 
Reference Number, all Reports related to all forecasted costs 
identified in response to this Request.
    3. Since January 1, 2009, has the Firm engaged in any research and 
development related to the Patents identified in Request C? (Y/N) If 
yes:
    a. What is the total cost of the Firms' research and development 
activity?
    b. Produce, and provide a narrative response identifying by 
Reference Number, Documents sufficient to show the total cost of the 
Firms' research and development activity.
    4. Produce, and provide a narrative response identifying by 
Reference Number, Documents sufficient to show all costs and payments 
identified in response to Request I
    5. Has the Firm made any payment related to the Acquisition of any 
Patent by any Person not otherwise identified in response to these 
Requests? (Y/N) If yes:
    a. State the Person(s) to whom the payments were made;
    b. State the total amount paid;
    c. State the total amount expected to be paid in the future; and
    d. For each Person who received payments from the Firm, provide a 
narrative response identifying the amount paid, identifying the amount 
expected to be paid in the future, and describing the Acquisition.
J. Aggregate Revenue Information
    1. Separately, for each year since January 1, 2009
    a. State the total revenue received by the Firm relating to all 
Transfers identified in response to Request G.
    (1) did the Firm share Transfer revenue with Person(s) outside the 
Firm? (Y/N) If yes:
    (a) State all Person(s) with whom this revenue is shared;
    (b) state the amount of revenue shared with Person(s) outside the 
Firm; and
    (c) state the amount retained by the Firm.
    b. State the total revenue received by the Firm relating to all 
Litigations identified in response to Request H.2.
    (1) did the Firm share Litigation revenue with Person(s) outside 
the Firm? (Y/N) If yes:
    (a) State all Person(s) with whom this revenue is shared;
    (b) state the total revenue shared with Person(s) outside the Firm; 
and
    (c) state the amount retained by the Firm.
    c. State the total revenue received by the Firm relating to all 
Licenses identified in response to Request H.3.
    (1) did the Firm share License revenue with Person(s) outside the 
Firm? (Y/N) If yes:
    (a) State all Person(s) with whom this revenue is shared;
    (b) state the total revenue shared with Person(s) outside the Firm; 
and
    (c) state the amount retained by the Firm.
    2. For all forecasted revenues expected to be received by the Firm 
after the date of this Request
    a. State the total revenue expected to be received by the Firm 
relating to all Transfers identified in Request G.
    b. State the total revenue expected to be received by all other 
Person(s) outside the Firm relating to all Transfers identified in 
Request G.
    c. State the total revenue expected to be received by the Firm 
relating to all Litigations identified in Request H.
    d. State the total revenue expected to be received by all other 
Person(s) outside the Firm relating to all Litigations identified in 
Request H.2.
    e. State the total revenue expected to be received by the Firm 
relating to all License Agreements identified in Request H.3.
    f. State the total revenue expected to be received by all other 
Person(s) outside the Firm relating to all License Agreements 
identified in Request H.3.
    3. Produce, and provide a narrative response identifying by 
Reference Number, Documents sufficient to show all revenue identified 
in response to Request J
    4. Produce, and provide a narrative response identifying by 
Reference Number, all Reports related to all forecasted revenues 
identified in response to Request J
    5. Has the Firm received any revenue, either directly or 
indirectly, from the Assertion of any Patent by any Person not 
otherwise identified in response these requests? (Y/N) If yes:
    a. State the Person(s) who paid this revenue to the Firm;
    b. State the total amount of revenue received;

[[Page 28724]]

    c. State the total amount of revenue expected to be received in the 
future; and
    d. For each Person who paid this revenue to the Firm, provide a 
narrative response identifying the amount paid, identifying the amount 
expected to be paid in the future, and describing the Assertion.
    6. Has the Firm received any revenue, either directly or 
indirectly, from the Acquisition of any Patent by any Person not 
otherwise identified in response these requests? (Y/N) If yes:
    a. State the Person(s) who paid this revenue to the Firm;
    b. State the total amount of revenue received;
    c. State the total amount of revenue expected to be received in the 
future; and
    d. For each Person who paid this revenue to the Firm, provide a 
narrative response identifying the amount paid, identifying the amount 
expected to be paid in the future, and describing the Acquisition.
    7. Has the Firm received any revenue, either directly or 
indirectly, from the Transfer of any Patent by any Person not otherwise 
identified in response these requests? (Y/N) If yes:
    a. State the Person(s) who paid this revenue to the Firm;
    b. State the total amount of revenue received;
    c. State the total amount of revenue expected to be received in the 
future; and
    d. For each Person who paid this revenue to the Firm, provide a 
narrative response identifying the amount paid, identifying the amount 
expected to be paid in the future, and describing the Transfer.
    Information Requests Directed to Approximately 15 Manufacturing 
Firms and NPEs Asserting Patents in the Wireless Sector:
    The FTC will have Manufacturing Firms and NPEs respond to the 
following information requests:
K. Identification of Report Author
    Identify by full name, title, business address, telephone number, 
email address, and official capacity the Person(s) who prepared or 
supervised the preparation of the Firm's response to the Information 
Requests.
L. Firm Information
    1. State the Firm's complete legal name and all other names under 
which it has done business since January 1, 2009, its corporate mailing 
address, all addresses and Web sites from which it does or has done 
business since January 1, 2009, and the date(s) and state(s) of its 
incorporation.
    2. Describe the Firm's business and corporate structure, provide an 
organizational chart stating the names of all parents, wholly or 
partially owned subsidiaries, incorporated or unincorporated divisions, 
affiliates, branches, joint ventures, franchises, operations under 
assumed names, Web sites, or other Person(s) over which the Firm 
exercises or has exercised supervision or control since January 1, 2009 
who Assert Wireless Patents. When responding to these Information 
Requests, separately provide all information for the Firm and each 
related Person(s) identified in response to Request L2.
    3. Has more than one Person identified in response to Request L2 
engaged in Assertions relating to Wireless Patents against the same 
Person. (Y/N) If yes, name the Person(s) identified in response to 
Request L2 that made the Assertions, name the Person subject to the 
Assertions, state the date of each Assertion; and identify the Wireless 
Patent(s) related to each Assertion.
    4. If the Firm is an exclusive Licensee to any Wireless Patent(s), 
produce, and provide a narrative response identifying by Reference 
Number, the License, state whether there are any geographic limitations 
to the License, whether there are any field of use limitations to the 
License, and whether the field of use restriction is in the following 
sectors: Chemical, Computers & Communications, Drugs & Medical, 
Semiconductors, Other Electrical & Electronic, Mechanical, or Other, 
and produce, and provide a narrative response identifying by Reference 
Number, all related Reports.
M. Standard Setting Commitments
    1. If any Person has committed to a Standard Setting Organization 
that it will License any Wireless Patent(s) Held by the Firm since 
January 1, 2009, for each commitment
    a. State the date the commitment was made.
    b. Identify the Person who made the commitment.
    c. Identify the Standard Setting Organization.
    d. Identify the standard(s) to which the commitment applies.
    e. State whether the commitment is to License the Wireless 
Patent(s) or any Patent claim(s) on reasonable and non-discriminatory 
(RAND); fair, reasonable, and non-discriminatory (FRAND); royalty-free 
(RF); or other terms.
    (1) if the commitment is to License on terms other than RAND, 
FRAND, or RF, provide a narrative response describing the terms.
    f. Is the commitment subject to a field of use restriction? (Y/N) 
If yes:
    (1) State the specific field of use restriction(s); and
    (2) identify, from the following list, in which sector(s) is the 
field of use restriction: Chemical, Computers & Communications, Drugs & 
Medical, Semiconductors, Other Electrical & Electronic, Mechanical, or 
Other.
    g. Provide a narrative response listing all Patent(s) that any 
Person has declared, or otherwise identified to any Person, as subject 
to the commitment.
    h. Produce, and provide a narrative response identifying by 
Reference Number, all agreements embodying the commitment.
N. Patent Transfer Information
    1. For each transaction in which the Firm Transferred Wireless 
Patent(s) since January 1, 2009
    a. State the date of the transaction.
    b. State the Person(s) who Transferred the Patent(s).
    c. State the Person(s) to whom the Patent(s) were Transferred.
    (1) did the Firm Transfer the Patent(s) to a Person that the Firm 
identifies as a Patent Assertion Entity? (Y/N)
    d. State the total number of Patent(s) Transferred in the 
transaction.
    e. For each Patent Transferred in the transaction:
    (1) State the Patent number.
    (2) did the Firm assign the Patent in connection with the 
transaction? (Y/N) If yes:
    (a) Was the assignment recorded with the United States Patent and 
Trademark Office? (Y/N)
    (3) did the Firm grant an exclusive License to the Patent(s) in 
connection with the transaction? (Y/N)
    f. Did the Firm transfer existing License obligations to the 
Patent(s)? (Y/N) If yes:
    (1) State the total number of License obligations transferred; and
    (2) state the total revenue received by the Firm from these 
Licenses.
    g. Did the Firm Transfer the Patent(s) in connection with any 
proceeding before a United States Bankruptcy Court? (Y/N) If yes:
    (1) State the jurisdiction; and
    (2) state the docket number.
    h. Was the Firm paid a lump-sum payment(s), i.e. a payment not 
directly affected by the transferee's future revenue or unit sales, to 
Transfer the Patent(s)? (Y/N) If yes, for each Person making payments 
to the Firm:
    (1) State the Person from whom the payment was received;
    (2) state the total amount of the lump-sum payment(s) received;

[[Page 28725]]

    (3) state the total amount of the lump-sum payment(s) expected to 
be received in the future;
    (4) if any agreement(s) define(s) the payment terms, produce, and 
provide a narrative response identifying by Reference Number, the 
agreement(s); and
    (5) provide a narrative response describing the method for 
calculating the payment(s).
    i. Did the Firm receive, or is it receiving, an on-going payment, 
i.e., a payment that is directly affected by either the transferee's 
future revenue or unit sales, from the Person(s) receiving the 
Patent(s)? (Y/N) If yes, for each Person making payments to the Firm:
    (1) State the Person(s) from whom the payment(s) are received;
    (2) state the total amount of the on-going payments received from 
this Person(s), by calendar year, made to the date of this Request;
    (3) state the total amount of payments expected to be received in 
the future;
    (4) if any agreement(s) define(s) the payment terms, produce, and 
provide a narrative response identifying by Reference Number, the 
agreement(s); and
    (5) provide a narrative response describing the method for 
calculating the on-going payment(s).
    j. Does the Transfer involve a cross-License? (Y/N) If yes:
    (1) State the date of the cross-License agreement.
    (2) Has the Firm assigned a value to the cross-License? (Y/N) If 
yes:
    (a) State the date of the most recent valuation;
    (b) state the amount of the most recent valuation;
    (c) provide a narrative response identifying by date and amount all 
prior valuations by, or on behalf of, the Firm; and
    (d) produce, and provide a narrative response identifying by 
Reference Number, all related Reports.
    (3) produce, and provide a narrative response identifying by 
Reference Number, the cross-License; and
    (4) produce, and provide a narrative response identifying by 
Reference Number, all related Reports.
    k. Did any Person outside the Firm share in the proceeds from the 
Transfer? (Y/N) If yes:
    (1) State the Person(s) who shared in the proceeds from the 
Transfer;
    (2) state the total amount shared with other Person(s) to the date 
of this Request;
    (3) state the total amount expected to be shared with other 
Person(s) in the future;
    (4) produce, and provide a narrative response identifying by 
Reference Number, all related agreements;
    (5) produce, and provide a narrative response identifying by 
Reference Number, all related Reports; and
    (6) for each Person identified, provide a narrative response 
stating the amount shared with each Person, the amount expected to be 
shared in the future, and the method for calculating this amount.
    l. Produce, and provide a narrative response identifying by 
Reference Number, all Reports related to the Transfer.
    m. Produce, and provide a narrative response identifying by 
Reference Number, all agreements related to the Transfer.
    2. To the extent not identified in these Information Requests, 
produce, and provide a narrative response identifying by Reference 
Number, all agreements between the Firm and any Person executed since 
January 1, 2009 relating to any Transfer by the Firm of any Legal Right 
to a Patent.
    a. For any such agreement produced, also produce, and provide a 
narrative response identifying by Reference Number, all Reports that 
(i) evaluate or analyze the reasons for entering into the agreement or 
(ii) evaluate or analyze the calculation of any payment relating to the 
Acquisition.
O. Patent Assertion Information
    1. Demand Information: For each Demand made by, or on behalf of, 
the Firm since January 1, 2009, relating to Wireless Patent(s)
    a. State the date of the Demand.
    b. State the Person(s) who made the Demand, e.g. the Firm or one of 
its related Person(s).
    c. State the Person(s) to whom the Demand was made.
    d. State the Patent(s) that formed the basis of the Demand.
    e. Identify, from the following list, in which sector(s) the Demand 
was made: Chemical, Computers & Communications, Drugs & Medical, 
Semiconductors, Other Electrical & Electronic, Mechanical, or Other.
    f. Was the Demand limited to geographic area(s)? (Y/N) If yes:
    (1) Identify the geographic area(s).
    g. State all accused product(s) relating to the Demand.
    h. Produce, and provide a narrative response identifying by 
Reference Number, a copy of each Demand Document and all appendices, 
including, but not limited to, claim charts, and all Reports related to 
the Demand.
    2. Litigation Information: For each Litigation commenced since 
January 1, 2009 relating to a Wireless Patent Held by the Firm, or a 
Wireless Patent in which the Firm has an Economic Interest, separately 
for each Person (collectively including its parents, subsidiaries, and 
affiliates) named as a defendant (if the Firm is a plaintiff) or as a 
declaratory judgment plaintiff (if the Firm is a defendant)
    a. State the jurisdiction in which the Litigation was commenced.
    b. State the docket number of the Litigation.
    c. State the date the Litigation was commenced.
    d. State all plaintiffs named or otherwise joined in the 
Litigation.
    e. State the defendant (including parents, subsidiaries, and 
affiliates) named or otherwise joined in the Litigation.
    f. State all Patents Asserted.
    g. Identify, from the following list, in which sector(s) the 
Patents were asserted: Chemical, Computers & Communications, Drugs & 
Medical, Semiconductors, Other Electrical & Electronic, Mechanical, or 
Other.
    h. Produce, and provide a narrative response identifying by 
Reference Number, all orders relating to all dispositive motions.
    i. Produce, and provide a narrative response identifying by 
Reference Number, all expert reports exchanged during Litigation that 
offer an opinion related to the valuation of the Patent(s) or damages 
relating to the Litigation.
    j. Is the Litigation pending? (Y/N) If no:
    (1) State the date of termination.
    (2) state whether the Litigation terminated upon successful 
dispositive motion, jury verdict, judgment following trial on the 
merits, appeal, settlement, or other (if other, explain).
    (3) provide a narrative response identifying all Patent claims 
found infringed, valid, and enforceable.
    (4) did a permanent injunction, exclusion order, or cease and 
desist order issue? (Y/N)
    (5) did the court award damages? (Y/N) If yes:
    (a) State the amount awarded; and
    (b) state the amount actually paid to the prevailing party.
    (6) did the court award fees pursuant to 35 U.S.C. 285? (Y/N) If 
yes:
    (a) State the fees awarded; and
    (b) state the amount actually paid to the prevailing party.
    (7) did the court issue sanctions pursuant to Rule 11 of the 
Federal Rules of Civil Procedure? (Y/N)
    (8) did the Litigation terminate upon exhaustion of appellate 
process? (Y/N)
    k. Did the Litigation settle? (Y/N) If yes:

[[Page 28726]]

    (1) Did the settlement result in a License agreement? (Y/N) If yes:
    (a) State the date of the License agreement;
    (b) state the Licensee; and
    (c) state the Licensor.
    (2) when was settlement reached: after the complaint was filed; 
after a successful dispositive motion, after a jury verdict, after 
judgment following trial on the merits, after appeal, or other (if 
other, explain)?
    (3) did the Court issue an order construing any claim(s) of the 
Patent(s) Asserted before settlement was reached? (Y/N) If yes:
    (a) Produce, and provide a narrative response identifying by 
Reference Number, the order.
    (4) state the total revenue the Firm has received under the terms 
of the settlement agreement from January 1, 2009 to the date of this 
Request. Do not report revenue reported for any License identified in 
response to N.3 below.
    (a) was any part of this revenue received as a lump-sum payment, 
i.e. a payment not directly affected by the defendant's future revenue 
or unit sales? (Y/N) If yes:
    (1) State the total revenue the Firm has received to the date of 
this request in lump-sum payments; and
    (2) state the total revenue the Firm expects to receive in lump-sum 
payments in the future.
    (b) was any part of this revenue received as an on-going payment, 
i.e., a payment that is directly affected by either the defendant's 
future revenue or unit sales? (Y/N) If yes:
    (1) State the total revenue the Firm has received to the date of 
this request in on-going payments; and
    (2) state the total revenue the Firm expects to receive in on-going 
payments in the future.
    (c) is this revenue shared with anyone outside the Firm? (Y/N) If 
yes:
    (1) State the total amount shared outside the Firm.
    (2) if the revenue is part of an ongoing payment, state the total 
amount the Firm expects to share in the future.
    (3) is any revenue shared pursuant to a contingency fee or risk-
sharing agreement? (Y/N) If yes:
    (A) State the total amount shared pursuant to a contingency fee or 
risk-sharing agreement;
    (B) state the Person(s) outside the Firm who is party to the 
agreement; and
    (C) provide a narrative response stating the amount the Firm shared 
with each Person, the amount the Firm expects to share in the future, 
and describing the method for calculating this amount.
    (4) state all Person(s) with whom this revenue is shared.
    (A) are any of these Person(s) the named inventor of any Patent 
Asserted in the Litigation? (Y/N)
    (B) are any of these Person(s) the employer of the named inventor 
of any Patent Asserted in the Litigation? (Y/N)
    (5) produce, and provide a narrative response identifying by 
Reference Number, all revenue sharing agreements.
    (6) provide a narrative response stating the amount shared with 
each Person and describing the method for calculating this amount.
    l. State the Firm's total expenses relating to the Litigation from 
January 1, 2009 to the date of this Request.
    (1) are these expenses shared with any Person(s) outside the Firm? 
(Y/N) If yes:
    (a) State the total amount of expenses shared outside the Firm;
    (b) identify all Person(s) with whom expenses are shared;
    (c) produce, and provide a narrative response identifying by 
Reference Number, all expense sharing agreements;
    (d) produce, and provide a narrative response identifying by 
Reference Number, all Reports related to all expense sharing 
agreements; and
    (e) provide a narrative response stating the amount shared with 
each Person and describing the method for calculating this amount.
    m. State all projected revenues relating to the Litigation from the 
date of this Request.
    (1) provide a narrative response describing the method for 
calculating the projected revenue, e.g. as a fraction of revenue or a 
fee per unit sold.
    n. To the extent not identified above, produce, and provide a 
narrative response identifying by Reference Number, all agreements 
related to the Litigation and produce, and provide a narrative response 
identifying by Reference Number, all Reports related to the Litigation.
    3. License Information: For each License executed since January 1, 
2009 relating to a Wireless Patent Held by the Firm or a Wireless 
Patent in which the Firm has an Economic Interest
    a. Who is the Licensor?
    b. Who is the Licensee?
    c. Identify all Patent(s) Licensed.
    d. What is the effective date of the License agreement?
    e. Does the License relate to a Wireless Patent Held by the Firm? 
(Y/N)
    f. Does the License relate to a Wireless Patent in which the Firm 
has an Economic Interest? (Y/N)
    g. For each Litigation related to the License:
    (1) State the jurisdiction in which the Litigation was commenced.
    (2) state the docket number of the Litigation.
    h. Does the License contain a field of use restriction? (Y/N) If 
yes:
    (1) State the specific field of use restriction ; and
    (2) identify, from the following list, in which sector(s) is the 
field of use restriction: Chemical, Computers & Communications, Drugs & 
Medical, Semiconductors, Other Electrical & Electronic, Mechanical, or 
Other.
    i. Does the License contain a geographic restriction? (Y/N) If yes:
    (1) Identify the geographic restriction(s).
    j. State the duration of the License agreement?
    k. State the Licensed products or services.
    l. Does the License include any cross-License? (Y/N) If yes:
    (1) Has the Firm assigned a value to the cross-License? (Y/N) If 
yes:
    (a) State the date of the most recent valuation; and
    (b) state the amount of the most recent valuation; and
    (c) provide a narrative response identifying by date and amount all 
prior valuations by, or on behalf of, the Firm; and
    (d) produce, and provide a narrative response identifying by 
Reference Number, all related Reports.
    (2) produce, and provide a narrative response identifying by 
Reference Number, the cross-License.
    m. Provide a narrative response identifying the number of Patents 
cross-Licensed, as well as whether the cross-License is exclusive, 
whether there are any geographic limitations to the cross-License, 
whether there are any field of use limitations to the cross-License, 
and whether the field of use restriction is in the following sectors: 
Chemical, Computers & Communications, Drugs & Medical, Semiconductors, 
Other Electrical & Electronic, Mechanical, or Other.
    n. State the total revenue the Firm has received under the terms of 
the License from January 1, 2009 to the date of this Request.
    (1) was any part of this revenue received as a lump-sum payment, 
i.e. a payment not directly affected by the defendant's future revenue 
or unit sales? (Y/N) If yes:
    (a) State the total revenue the Firm has received to the date of 
this request in lump-sum payments.
    (2) was any part of this revenue received as an on-going payment, 
i.e., a payment that is directly affected by either the defendant's 
future revenue or unit sales? (Y/N) If yes:

[[Page 28727]]

    (a) State the total revenue the Firm has received to the date of 
this Request in on-going payments.
    (3) is this revenue shared with anyone outside the Firm? (Y/N) If 
yes:
    (a) State the total amount shared outside the Firm.
    (b) if the revenue is part of an ongoing payment, state the total 
amount the Firm expects to share in the future.
    (c) state all Person(s) with whom this revenue is shared.
    (1) are any of these Person(s) the named inventor of any of the 
Licensed Patents? (Y/N)
    (2) are any of these Person(s) the employer of the named inventor 
of any of the Licensed Patents? (Y/N)
    (d) produce, and provide a narrative response identifying by 
Reference Number, all revenue sharing agreements.
    (e) provide a narrative response stating the amount the Firm shared 
with each Person and the amount the Firm expects to share in the future 
and describing the method for calculating this amount.
    o. State the Firm's total expenses relating to the License 
agreement from January 1, 2009 to the date of this Request.
    (1) are these expenses shared with any Person(s) outside the Firm? 
(Y/N) If yes:
    (a) State the total amount of expenses shared outside the Firm;
    (b) identify all Person(s) with whom expenses are shared;
    (c) produce, and provide a narrative response identifying by 
Reference Number, all expense sharing agreements;
    (d) produce, and provide a narrative response identifying by 
Reference Number, all Reports related to all expense sharing 
agreements; and
    (e) provide a narrative response stating the amount of expenses 
shared with each Person and describing the method for calculating this 
amount.
    p. State all projected revenues relating to the License from the 
date of this Request.
    (1) provide a narrative response describing the method for 
calculating the projected revenue, e.g. as a fraction of revenue or a 
fee per unit sold.
    q. Produce, and provide a narrative response identifying by 
Reference Number, all Reports related to the License.
    r. Produce, and provide a narrative response identifying by 
Reference Number, all agreements related to the License.
    4. To the extent not identified above, produce, and provide a 
narrative response identifying by Reference Number, all agreements 
related to any Assertion relating to a Wireless Patent Held by the 
Firm, or a Wireless Patent in which the Firm has an Economic Interest 
and produce, and provide a narrative response identifying by Reference 
Number, all related Reports.
P. Aggregate Cost Information
    1. Separately, for each year since January 1, 2009
    a. State the total cost to the Firm relating to all Litigations 
identified in response to Request O.2.
    (1) did the Firm share Litigation costs with Person(s) outside the 
Firm? (Y/N) If yes:
    (a) State all Person(s) with whom these costs are shared;
    (b) state the total amount paid by Person(s) outside the Firm; and
    (c) state the total amount paid by the Firm.
    b. State the total cost to the Firm relating to all Licenses 
identified in response to Request O.3.
    (1) did the Firm share License costs with Person(s) outside the 
Firm? (Y/N) If yes:
    (a) State all Person(s) with whom these costs are shared;
    (b) state the total amount paid by Person(s) outside the Firm; and
    (c) state the total amount paid by the Firm.
    2. For all forecasted costs expected to be paid after the date of 
this Request
    a. State the total cost expected to be paid by the Firm relating to 
all Litigations identified in Request O.2.
    b. State the total cost expected to be paid by all other Person(s) 
outside the Firm relating to all Litigations identified in Request O.2.
    c. State the total cost expected to be paid by the Firm relating to 
all License Agreements identified in Request O.3.
    d. State the total cost expected to be paid by all other Person(s) 
outside the Firm relating to all License Agreements identified in 
Request O.3.
    e. Produce, and provide a narrative response identifying by 
Reference Number, all Reports related to all forecasted costs 
identified in response to this Request.
    3. Produce, and provide a narrative response identifying by 
Reference Number, Documents sufficient to show all costs and payments 
identified in response to this Request.
Q. Aggregate Revenue Information
    1. Separately, for each year since January 1, 2009
    a. State the total revenue received by the Firm relating to all 
Transfers identified in response to Request N.
    (1) did the Firm share Transfer revenue with Person(s) outside the 
Firm? (Y/N) If yes:
    (a) State all Person(s) with whom this revenue is shared;
    (b) state the amount of revenue shared with Person(s) outside the 
Firm; and
    (c) state the amount retained by the Firm.
    b. State the total revenue received by the Firm relating to all 
Litigations identified in response to Request O.2.
    (1) did the Firm share Litigation revenue with Person(s) outside 
the Firm? (Y/N) If yes:
    (a) State all Person(s) with whom this revenue is shared;
    (b) state the total revenue shared with Person(s) outside the Firm; 
and
    (c) state the amount retained by the Firm.
    c. State the total revenue received by the Firm relating to all 
Licenses identified in response to Request O.3.
    (1) did the Firm share License revenue with Person(s) outside the 
Firm? (Y/N) If yes:
    (a) State all Person(s) with whom this revenue is shared;
    (b) state the total revenue shared with Person(s) outside the Firm; 
and
    (c) state the amount retained by the Firm.
    2. For all forecasted revenues expected to be received by the Firm 
after the date of this Request.
    a. State the total revenue expected to be received by the Firm 
relating to all Transfers identified in Request N.
    b. State the total revenue expected to be received by all other 
Person(s) outside the Firm relating to all Transfers identified in 
Request N.
    c. State the total revenue expected to be received by the Firm 
relating to all Litigations identified in Request O.2.
    d. State the total revenue expected to be received by all other 
Person(s) outside the Firm relating to all Litigations identified in 
Request O.2.
    e. State the total revenue expected to be received by the Firm 
relating to all License Agreements identified in Request O.3.
    f. State the total revenue expected to be received by all other 
Person(s) outside the Firm relating to all License Agreements 
identified in Request O.3.
    3. Produce, and provide a narrative response identifying by 
Reference Number, Documents sufficient to show all revenue identified 
in response to Request Q.
    4. Produce, and provide a narrative response identifying by 
Reference Number, all Reports related to all forecasted revenues 
identified in response to Request Q.
    5. Has the Firm received any revenue, either directly or 
indirectly, from the Assertion of any Wireless Patent by any Person not 
otherwise identified in response these requests? (Y/N) If yes:

[[Page 28728]]

    a. State the Person(s) who paid this revenue to the Firm;
    b. state the total amount of revenue received;
    c. state the total amount of revenue expected to be received in the 
future; and
    d. for each Person who paid this revenue to the Firm, provide a 
narrative response identifying the amount paid, identifying the amount 
expected to be paid in the future, and describing the Assertion.
    6. Has the Firm received any revenue, either directly or 
indirectly, from the Transfer of any Wireless Patent by any Person not 
otherwise identified in response these requests? (Y/N) If yes:
    a. State the Person(s) who paid this revenue to the Firm;
    b. state the total amount of revenue received;
    c. state the total amount of revenue expected to be received in the 
future; and
    d. for each Person who paid this revenue to the Firm, provide a 
narrative response identifying the amount paid, identifying the amount 
expected to be paid in the future, and describing the Transfer.
    Pending this information collection, the destruction, mutilation, 
alteration, or falsification of documentary evidence within the 
possession or control of a person, partnership or corporation subject 
to the FTC Act is subject to criminal prosecution. 15 U.S.C. 50, see 
also 18 U.S.C. 1505.

III. Confidentiality

    In connection with its requests, the Commission will receive 
information of a confidential nature. Under Section 6(f) of the FTC 
Act, such information is protected from disclosure while it remains 
confidential commercial information. 15 U.S.C. 46(f).

IV. Estimated Hours and Labor Cost Burden

    The proposed information collection is a one-time endeavor that, 
upon completion by study subjects, will not involve repeated responses. 
In its prior Federal Register notice, the FTC estimated that a 
recipient's burden for the PAE study would range from 90 to 400 hours 
depending on the recipient.\1\
---------------------------------------------------------------------------

    \1\ 78 FR 61,352, 61357 (Oct. 3, 2013).
---------------------------------------------------------------------------

    Several commenters noted that the FTC's initial estimate of 
recipients' burden was accurate, while others stated that the FTC's 
initial burden estimates were too low. The initial hour burden 
estimates are consistent with previous PRA estimates and the FTC's 
experience with information requests that require financial data, 
narrative responses, and production of pre-existing documents. The 
Generic Drug Report, as well as the Authorized Generic Drugs report, 
involved requests for financial information and responses to questions, 
and the estimated hours burdens varied depending on the number of drugs 
covered. Similarly, the burden in this study will vary depending on a 
subject's number of patents and volume of assertion activity. In the 
first generic drugs study, the burden was an estimated 100-500 hours, 
and in the authorized generics study, the burden was an estimated 138 
to 456 hours.\2\
---------------------------------------------------------------------------

    \2\ 66 FR 12,512, 12,522-23 (2001); 72 FR 25,304, 25314 (2007).
---------------------------------------------------------------------------

    The Commission believes that its estimates are realistic given the 
modifications that it has made to the requests, which now reflect many 
of the public comments' suggestions for reducing burden. For example, 
many requests that originally called for ``all'' documents in a given 
category now request a defined subset of such documents. Several 
comments stated that requests would unduly burden companies with large 
portfolios of patents that were developed by the company's employees. 
The proposed information collection has been modified to avoid 
unreasonable burdens on such companies. Moreover, in response to 
concerns about using a single set of requests for PAE Firms, 
Manufacturing Firms, and NPEs, there are now two sets of proposed 
information requests: one for PAE firms, and a second for Manufacturers 
and NPEs.

A. Estimated Hours Burden

------------------------------------------------------------------------
                                                           Manufacturers
                  Task                       PAE firms       and NPEs
                                              (hours)         (hours)
------------------------------------------------------------------------
Identify, obtain, and organize firm                15-35           15-35
 information; prepare response..........
Identify, obtain, and organize patent              40-65             N/A
 information; prepare response..........
Identify, obtain, and organize patent              40-65             N/A
 portfolio information; prepare response
Identify, obtain, and organize                    70-150             N/A
 acquisition information; prepare
 response...............................
Identify, obtain, and organize transfer           70-150          70-150
 information; prepare response..........
Identify, obtain, and organize assertion         150-300         150-300
 information; prepare response..........
Identify, obtain, and organize aggregate           20-40           20-40
 revenue information; prepare response..
Identify, obtain, and organize aggregate           20-40           20-40
 cost information; prepare response.....
                                         -------------------------------
    Total...............................         425-845         275-565
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    FTC staff anticipates that the cumulative hours burden to respond 
to the information requests will be between 275 and 845 hours per firm. 
Nonetheless, staff conservatively assumes that the burden for each of 
the approximately 25 PAE firms will be 845 hours, and the cumulative 
estimated burden will be approximately 21,125 hours. Staff 
conservatively assumes that the burden for each of the approximately 15 
manufacturers and NPEs will be between 565 hours per firm, and the 
cumulative estimated burden will be approximately 8,475 hours. Given 
these conservative estimates, the total estimated burden is 
approximately 29,600 hours. These estimates attempt to include any time 
spent by other entities affiliated with the Firm that received the 
information requests, however, the numbers may be greater or lesser 
depending on the numbers of affiliated entities. The FTC seeks to 
understand the number of affiliated entities as part of the Information 
Requests.

B. Estimated Cost Burden

    It is difficult to calculate precisely labor costs associated with 
this data production. Labor costs entail varying compensation levels of 
management and/or support staff among firms of different sizes. In 
addition, comments responding to the First Notice suggested that 
outside counsel will be involved in responding to the requests.

[[Page 28729]]

Consequently, although financial, legal, and clerical personnel may be 
involved in the information collection process, FTC staff now assumes 
that mid-management personnel and outside legal counsel will handle 
most of the tasks involved in gathering and producing responsive 
information, and has applied an average rate of $250/hour for all labor 
costs. Thus the labor costs per company may range between $68,750 (275 
hours x $250/hour) and $211,250 (845 hours x $250/hour).

C. Estimated Annual Capital or Other Non-labor Costs

    Staff anticipates that the capital or other non-labor costs 
associated with the information requests will be minimal. Although the 
information requests may require the respondent to store copies of the 
requested information provided to the Commission, responding Firms 
should already have in place the means to store information of the 
volume requested. Respondents may need to purchase minimal office 
supplies to respond to the request. Staff estimates that each 
respondent will spend $500 for such costs regarding the information 
request, for a total additional non-labor cost burden of $20,000 ($500 
x 40 Firms).

V. Request for Comment

    Under the PRA, 44 U.S.C. 3501-3521, federal agencies must obtain 
approval from OMB for each collection of information they conduct or 
sponsor. ``Collection of information'' means agency requests or 
requirements that members of the public submit reports, keep records, 
or provide information to a third party. 44 U.S.C. 3502(3); 5 CFR 
1320.3(c). As required by Section 3506(c)(2) of the PRA, 44 U.S.C. 
3506, on October 3, 2013, the FTC published its First Notice seeking 
public comments on a study of PAE activity. The FTC will provide OMB 
with the comments received in response to the First Notice.
    Pursuant to Section 3507 of the PRA, additional public comments 
regarding this information collection request may be submitted to OMB 
and the FTC. Comments received by June 18, 2014 will be considered. 
Written comments to OMB should be addressed to: Office of Information 
and Regulatory Affairs, Office of Management and Budget, Attention: 
Desk Officer for the Federal Trade Commission, New Executive Office 
Building, Docket Library, Room 10102, 725 17th Street NW., Washington, 
DC 20503. Comments sent to OMB by U.S. postal mail, however, are 
subject to delays due to heightened security precautions. Thus, 
comments instead should be sent by facsimile to (202) 395-5167.
    Postal mail addressed to the Commission is also subject to delay 
due to heightened security screening. As a result, we encourage you to 
submit your comments online. To submit your comment to the FTC online, 
write ``PAE Reports: Paperwork Comment; Project No. P131203'' on your 
comment, and file your comment online at https://ftcpublic.commentworks.com/ftc/paestudypra2, by following the 
instructions on the web-based form. If you prefer to file your comment 
on paper, mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite 
CC-5610, (Annex J), Washington, DC 20580, or deliver your comment to 
the following address: Federal Trade Commission, Office of the 
Secretary, Constitution Center, 400 7th Street SW., 5th Floor, Suite 
5610, (Annex J), Washington, DC 20024. If this Notice appears at http://www.regulations.gov/#!home, you also may file a comment through that 
Web site.
    Your comment, including your name and your state, will be placed on 
the public record of this proceeding, including, to the extent 
practicable, on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the Commission tries 
to remove individuals' home contact information from comments before 
placing them on the Commission Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver's license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number.
    You are also solely responsible for making sure that your comment 
does not include any sensitive health information, like medical records 
or other individually identifiable health information. In addition, do 
not include any ``[t]rade secret or any commercial or financial 
information which is * * * privileged or confidential,'' as discussed 
in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 
4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do not include 
competitively sensitive information such as costs, sales statistics, 
inventories, formulas, patterns, devices, manufacturing processes, or 
customer names in your comment.
    If you seek confidential treatment for your comment, you must file 
it in paper form, with a request for confidential treatment, and you 
must follow the procedure explained in FTC Rule 4.9(c), 16 CFR 
4.9(c).\3\ Your comment will be kept confidential only if the FTC 
General Counsel grants your request in accordance with the law and the 
public interest.
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    \3\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
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    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that the Commission administers permit the collection of public 
comments to consider and use in this proceeding as appropriate. The 
Commission will consider all timely and responsive public comments that 
it receives on or before June 18, 2014. You can find more information, 
including routine uses permitted by the Privacy Act, in the 
Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2014-11484 Filed 5-16-14; 8:45 am]
BILLING CODE 6750-01-P