ULTRA: Strengthening Intellectual Property through Intelligence TM

Summary Product Overview andSample Screenshots

Iron Mountain Training Seminar

http://www.avestar-ip.com

Patent Pending

• Avestar-IP was created by Navastream Corporation to address the growing challenges businesses face defending their intellectual property and corporate identity onlineSince 2001, Avestar-IP and Navastream have offered a sophisticated suite of intelligent online information management technology. Navastream Corporation is also the leading North American provider of strong encryption technology for GSM cellular phones.

• Collaboration – Secure Project ManagementOurProject ASP (http://www.ourproject.com), in Standard, Enterprise, & Enterprise LAN editions

• Intelligence – ULTRA ASP PlatformPatent-pending ULTRA offers a full suite of sophisticated ASP-based Internet intelligence tools that help clients manage their intellectual property, defend their corporate identity, and manage their web presence.

Overview of Avestar-IP

Avestar-IP ULTRA ASP service summary

• Through custom, client-controlled, continuous Internet and patent/trademark database monitoring, ULTRA gives companies and their attorneys the power to detect, track, and analyze potential and imminent threats to corporate identity.

• Clients log into ULTRA to automatically identify unauthorized resellers, linking relationships, trademark usage, copycat sites, counterfeit product sales/auctions, and relevant patent and trademark applications. In addition, ULTRA identifies domain name registrations including company trademarks and similarities, and tracks online references to client companies in newsgroups, blogs, and bulletin boards.

• In keeping with feedback from current and potential system users, the ASP interface has been carefully designed to be fast, intuitive, and easy-to-navigate.

• Results are kept permanently – long after evidence of infringing behavior may have been removed from the Internet.

Shifting intellectual property environment

• The last decade has seen a gradual shift from “motiveless” hacking to organized online criminal activity and increased Internet fraud; according to a survey conducted by IBM (and published in Financial Times), Internet crime now is a larger threat than traditional hacking

• The explosion of information created and distributed daily on the Internet has made it impossible to manually capture, track, and archive misuses and abuses of a company’s protected trademarks, which directly impact corporate reputation.

• Although traditional search methods are insufficient in policing worldwide use of online trademarks and sales channels, with highly sophisticated and specialized monitoring technology, it is becoming possible to patrol this universe effectively.

Recent news articles

TiVo Wins Damages in Suit Vs. EchoStar MARSHALL, Texas, Apr. 14, 2006 (AP)

(AP) A federal jury awarded TiVo Inc. nearly $74 million in damages Thursday in a swift ending to a patent-infringement lawsuit against EchoStar Communications Corp., the parent of the Dish satellite television provide

MarketingDon't Let The Customers Drive

Tom Van Riper, 04.12.06, 4:40 PM ETNew York - Any company that pours $1.3 billion per year into its marketing budget generally wants to ensure it

keeps control of the message it's putting out.General Motors (nyse: GM - news - people ),

What Happens When an eBay Steal Is a FakeWe Sought Redress From SiteAnd Sellers After Our Fendi,Gucci, Tiffany Proved Faux

By LORETTA CHAOJune 29, 2006; Page D1

Diesels Are the New Heroin

Recent news articles

Diesels Are the New Heroin

Counterfeit Diesel jeans,Just $15 each on the sidewalks of Bangkok.

Photo Credit: Jeff Koyen

Recent news articles

Diesels Are the New Heroin

Bootleg CDs too primitive? Go direct-to-iPod.

Photo Credit: Danny Carlone

Environment overview

Unknown Bank Robbers

Environment overview

RACKETEERING; SECURITIES FRAUD; WIRE FRAUD; MAIL FRAUD; MONEY LAUNDERING

wanted for wire and Internet fraud in New York.

RACKETEERING; SECURITIES FRAUD; WIRE FRAUD; MAIL FRAUD; MONEY LAUNDERING

Industry statistics

“America harbors most of the world’s cybercriminals. The Internet crime wave may seem international. But nearly three-quarters of online fraud reported to the FBI originates from within the U.S.”

“Wired” Magazine July 2006

2006 CSI/FBI ReportThe Computer Security Institute (CSI) with the

San Francisco Federal Bureau of Investigation’s (FBI) 2006 report

• virus attacks• unauthorized access to networks• lost/stolen laptops or mobile hardware • theft of proprietary information or intellectual property

Even in an anonymous survey, only half of the 616 U.S companies surveyed were willing to share overall cost figures from financial losses

$0

$50,000

$100,000

$150,000

$200,000

$250,000

2005 2006

Average Loss

Who needs enforcement

PROTECTING INTELLECTUAL PROPERTY What role does intellectual property protection play in fostering innovation? How does piracy thwart your innovation efforts? A cross-industry look at IP piracy and innovation.

“Stop IP Theft”

The Wall Street JournalNovember 8, 2005

Bob WrightChairman and Chief Executive OfficerNBC Universal

Who needs enforcement

• Industries where enforcement is most critical• Product manufacturers whose goods are sold through online channels or auctions

• Companies that sell to consumers and that rely on strong brands

• Companies whose revenues rely on driving traffic to their website

• Industries where enforcement is less critical• Service companies that do not transact business on the web – although these companies can also have larger budgets, making them possible buyers

• Companies with low brand awareness or niche customer bases

• Industries where a lack of anti-phishing capabilities is a stumbling block• Finance

Enforcement & major registrars

RegistrarEnforcement Provider Service Summary Pricing

MarkMonitor In house technology

Most comprehensive of competing services. Significant anti-phishing focus. High customer service focus. Claims to be #1 provider to Fortune 100 (in domain name management).

$24k/year per trademark; in bulk, as little as $10k/year; may offer cheaper packages

Verisign Cyveillance (building in house version, 3Q-4Q)

Verisign and its customers seem generally unhappy with Cyveillance, which is moving to being more of a data provider. “Tired” management team and expensive product.

$5k/trademark report; $25k/trademark/year for monitoring

Melbourne IT Likely to partner shortly

Rumor is that they may announce a partnership with NameProtect or Checkmark Networks, but uncertain

TBD, likely similar to Iron Mountain pricing

Register.com In house technology

Limited domain name registration and web content monitoring service; may not provide ASP services.

N/A

NetNames In house technology

Email notification of potentially infringing domain name registrations

N/A

Third-party enforcement providers

Company Service Summary

NameProtectwww.nameprotect.com

• A la carte ccTLD monitoring for $995/year/trademark; gTLD for $225/year/trademark• One-off logo searches for $3,295-$4,350 (5-8 days); one-off online trademark usage reports for $2,045-2,650 (5-8 days)• Trademark filing watch services ranging from $195-460 (domestic) - $3,820 (worldwide)• Viewed by legal community as aggressively chasing Thomson and Corsearch.• Provides some anti-phishing capabilities

Cyveillancewww.cyveillance.com

• Offers single reports for $5k/trademark with monitoring priced $25k/year to $50k+/year• Original mover in the monitoring space; claims more than half of Fortune 50• Customers we’ve spoken with are generally not satisfied with quality of interface or reports• Being marginalized by Verisign’s new enforcement product• Tired management team; company for sale• Provides some anti-phishing capabilities

Check Mark Networkswww.totaldomaindata.com/checkmark/

• Auction monitoring: $9,950/trademark• Monitoring of concerning websites for changes: $449/year• Changes in whois records: $449/year• Trademark monitoring and state registrations: $175-$2,440• ccTLD monitoring for $449/year and gTLD for $185/year; one-off reverse whois: $750

Third-party enforcement providers

Company Service Summary

Thomsonwww.thomson.com

• Powerhouse in trademark registration searching and monitoring• Offers subscription of weekly gTLD registration reports for $3,500/year• Not significant online enforcement competitor

CPAwww.cpaglobal.com

• Extremely strong European presence• Powerhouse in trademark registration searching and monitoring• May have very strong gTLD monitoring services• May have been disorganized a year ago

Navagraaf • European focus (headquartered in Amsterdam)• Monitoring of domain name registrations: E395-E795/trademark/year

•MarkMonitor

Major strengths vs. competitors

• Ability to create advanced filters (incl. fuzzy rules)

• Dell: There are 50,000 domain names that include the word “dell”; however, by ignoring websites that do not resolve, include “super-set” words (e.g., yodelling), and that do not include certain keywords (e.g., laptop), our filters cut the list to fewer than 3,000. We further split these into parked / monetized domains vs. active domains and were able to prioritize the websites into severe, high, medium, and low.

• Ability to better group results

• Design & usability

• Surveys at INTA showed that usability is the number one concern of lawyers and paralegals Breadth of service offering

• Logo Searching

• Speed of operation

Major weaknesses vs. competitors

• No anti-phishing capabilities

• Although most companies outside finance are not the subject of anti-phishing campaigns, it has been a hot marketing item, especially for MarkMonitor. As such, we are examining launching anti-phishing capabilities.

• “Reverse WHOIS”

• Although Avestar-IP records whois information for all potentially infringing websites and users can sort results by owner, Avestar-IP does not have a reverse WHOIS database of tens of millions of other domain names. In the past, users have used Reverse WHOIS to prove a pattern of abuse beyond their own trademarks. However, so many squatters have now been taken to arbitration that proving a pattern of abuse based on previous arbitration results is possible. Further, most reverse whois databases were built years ago and are becoming largely out of date.

Overcoming an incumbent

• Location and ownership of currently stored data can be a hurdle

• If a company’s existing enforcement provider stores all of the information regarding potential infringements and past enforcement actions, this data may be lost if the customer cancels the contract.

• This problem can be mitigated by subscribing to both services for a “cut-over” period.

• Cost vs. MarkMonitor likely to be lower, particularly where multiple trademarks are being tracked

Feature update

• New since INTAAction management system; tidbits in domain crawler and ability to filter/prioritize on tidbits; active domain queries; automatic cease and desist letters; ccTLD support; ability to track sellers and not just auctions in communication crawler; mouse-over technology in auctions; automatic characterization of websites as parked/monetized or content-based; ability to export any data into MS Excel; improved blog monitoring; constant revalidation of potentially infringing domain names; ability to view more than one week’s results per screen; improved user-facing filtering options.

• Coming SoonTracking changes to websites; incorporation of website traffic volume into prioritization scheme; automatic flagging of registrants who have been arbitrated against; multi-language dictionary support to reduce false positives in domain name monitoring; EU/UK/Australian trademark and patent information; tracking of inbound links to client websites; ability to auto-report to eBay’s Vero system; patent (application) monitoring based on prior art; user applet (a la MS Office) that pops up new severe potential infringements;

The demo: RealVNC & Webex

• Avestar-IP’s preferred technology for demonstrations is RealVNC. It is the fastest available technology and, by virtue of being open source, we have been able to modify the code and recompile it such that it automatically connects to our demonstration servers (thereby greatly simplifying the user experience).

• To download the Windows client with one click, users can point their web browsers to http://www.avestar-ip.com/downloads/vnc

• The program is small and can be saved and run from the desktop

• However, extremely aggressive firewalls may block RealVNC signals; if a user isn’t quickly prompted for a password (typically “demo”), a firewalling problem may exist. If the user has any open VPN connections, they should be closed and the program re-launched.

• If RealVNC cannot be made operational, clients can fall-back on WebEx. Using Webex, users will need to click “Attend” at the top-right-hand corner of the page and enter a meeting number assigned at the time of the demo. They may also need to install ActiveX controls if they have not used Webex before.

Buzzwords

• Domain name monetization: Earning revenue, typically by serving ad pages, by registering a page with a domain name that users are likely to type.

• Revenue from text advertising alone totaled $400–$600 million in 2005 and could reach up to $1 billion by 2007, according to Susquehanna Financial Group

• Phishing/Pharming: sending e-mails (or using proxy servers/DNS poisoning) to direct users to “fake” websites that attempt to steal usernames, passwords, and/or financial data.

• The Anti-Phishing Working Group reports that approximately 10k attempts are made monthly, with <20 brands comprising 80% of attacks (95 brands in total)

• Tasting/Taste Testing: registering thousands of domain names for 5-7 days (for free) during the grace period to determine which ones generate sufficient traffic to justify registration.

• Word Intellectual Property Organization (WIPO): in Geneva, WIPO administers 23 international treaties dealing with different aspects of intellectual property protection, including domain name arbitration

• Results: http://arbiter.wipo.int/domains/search/index.html

Buzzwords (cont’d)

• Trademark squatting: Registering in a domain name someone else’s trademark (e.g., ironmountainstorage.com or maybe ironmountain.fr).

• Typo-squatting: Registering a domain name with a misspelled version of someone else’s trademark (e.g., ironmountian.com).

• Reverse WHOIS: Searching a list to determine what domain names are owned by a specific owner.

• Gazette: The weekly publications of trademark and patent filings by the USPTO are referred to as “gazettes.” Avestar-IP adopts this terminology for the list of registered domain names as well.

• Meta tags: Words in a webpage that are not displayed but that are supposed to describe the content of the webpage.

• The two most common uses of meta tags on the Web are to provide a description and to provide meta keywords for a web page. This data is typically used by search engines (such as Google) to generate and display a list of search results matching a given query.

Who/how to contact

• Key Avestar-IP contact personnel (with cellular phone numbers)

• Technical: Emanuel Miller, emiller@avestar-ip.com, 415.216.8764• Alternate (esp. action management system): Paulus Zegwaard, paulus.zegwaard@avestar-ip.com • Alternate: Baosen Cheng, baosen.cheng@avestar-ip.com

• Sales Matters: Altura Ewers, altura.ewers@avestar-ip.com, 415.867.9297

• Administration: Amy Chun, amy.chun@avestar-ip.com

• General: Edward Fenster, edward.fenster@avestar-ip.com, 917.440.1023

• Office phone number: 415.552.4210

• Office fax number: 415.552.4193

• Office address: 1417 15th Street, San Francisco, CA 94103

• Internet: http://www.avestar-ip.com

• On August 4 we will be installing additional lines for technical and customer support services and will distribute that information at that time.

Biography: Edward Fenster, CEO

Previously, Edward served as Director of Corporate Development at Asurion Corporation, the leading provider of insurance and enhanced services to more than 50 million wireless subscribers in the United States and Asia. With 2005 revenues in excess of $700 million, the company has generated explosive organic growth of nearly 65% on a five-year compounded basis. Edward was responsible for identifying, structuring, and executing opportunities to expand into new sectors through both acquisitions and business development. He orchestrated new business initiatives in the areas of satellite radio and DSL as well as engineered Asurion’s purchase of Warranty Corporation of America. He also launched the firm's long-term financial planning activities.

Prior to his time at Asurion, Edward spent over four years at The Blackstone Group, the world’s largest private investor, principally in the firm’s Private Equity group. While at Blackstone, Edward completed a dozen acquisitions, divestitures, and restructurings valued at over $10 billion, including companies headquartered in six countries and spanning industries including telecommunications, biotechnology, software, industrials, and consumer and financial services. He also introduced Blackstone to the management team that the firm tapped to run a group of under-performing television stations acquired from Emmis Communications Corp.

Edward has also held roles at Bloomberg, L.P., in the information technology group of Citigroup Inc., and in the investment banking division of Needham & Company, Inc. In addition, he serves as Advisory Partner to Millennium Technology Value Partners, L.P., a private equity firm formed to provide investors with liquidity on their venture capital holdings, non-core operations, and other generally illiquid assets.

Edward graduated with a Bachelor of Arts in Economics and a minor in Computer Science from The Johns Hopkins University, where he also taught C and C++ programming. He is currently completing the Masters in Business Administration program at Stanford University.

Prior to co-founding Navastream, Altura was Chief Sales Officer for Germany’s leading IT Security and Hardware Encryption manufacturer Biodata Information Technology AG. Altura was responsible for OEM, Strategic Alliances and general worldwide sales and marketing of Biodata AG products including Encryption, Firewall, Brand Protection and Image Search. Altura joined Biodata AG after the company he founded, AB Systems Inc., specializing in high-speed voice and video-over-IP encryption was acquired by Biodata AG in 1999.

Prior to founding AB Systems, Altura was director of International Sales and Marketing for Biodata AG’s predecessor Biodata GmbH in Lichtenfels, Germany where he grew sales from less than $200,000 to more than $24 million.

Altura holds a B.S. in Economics and Art History and Masters in Computer Science from University of Maryland, University College in Heidelberg, Germany. Altura is an avid Cryptographer and served in the United Sates Army’s Judge Advocate General’s Corps.

He also serves on the advisory board of The Camelot Group, Takima Entertainment and has raced in the Trans-Siberian winter Road Rally race where his Team Takima took first place in March 2003.

Biography: Altura Ewers, COO/SVP

ULTRA: Strengthening Intellectual Property through Intelligence

www.avestar-ip.com

The End