RFID Patent Assets

1RFID Patent UpdateRoger StewartSourland Mountain [email protected]

SourlandMountain

Associates

Patent Overview

Patented RFID Components Numerical Analysis of RFID Patents

Trends Geographical Distribution

Qualitative Analysis of RFID Patents Databases Classification Quality Assignment

Summary & Future Options

Commonly PatentedRFID System Components

RFID Tags Power transfer & regulation Clock synchronization Memory Backscatter Modulation Protocols Antennas

RFID Readers Forward Link RF Transmission Backscatter Link Receiver

Tag Antenna

Basic Tag Components

PowerRectifier /Regulator

ClockExtractor

Memory

Modulator

L

o

g

i

c

Silicon chip

Tag Antenna

Tag Power


ClockExtractor

Memory

Modulator

L

o

g

i

c

Silicon chip

Power Transfer

AC Power Source

DC Power

AC PowerAC DC

Power Converter

WIRED

AC Power

TagWIRELESS

Reader

Tag Antenna


ClockExtractor

Memory

Modulator

L

o

g

i

c

Tag Clock

Silicon chip

Clock Extraction

Reader Clock

Tag

C

l

o

c

k

1

C

l

o

c

k

2

C

l

o

c

k

3

C

l

o

c

k

4

C

l

o

c

k

5

C

l

o

c

k

6

C

l

o

c

k

7

C

l

o

c

k

8

C

l

o

c

k

9

C

l

o

c

k

1

0

C

l

o

c

k

1

0

Reader

Tag Antenna


ClockExtractor

Memory

Modulator

L

o

g

i

c

Tag Logic

Silicon chip

Anti-Collision

Reader

Tags

Tag Antenna


ClockExtractor

Memory

Modulator

L

o

g

i

c

Tag Memory

Silicon chip


ClockExtractor

Memory

Modulator

L

o

g

i

c

Tag Communication & Modulation

Silicon chip

Tag Antenna

Transport Modulation

Forward link communication Output RF power is modulated between

full and fractional power (AM modulation) Modulation depth 30% to 95% Amplitude Shift Keying and PR-ASK PIE encoding

Backscatter link communication FMO or Miller encoded in C1G2 FSK used in C0G1 and others FM1 used in C1G1

Host Interface

Transmitter

Receiver

L

o

g

i

c

Reader Antenna

AC DC Power Converter

Basic Reader Components

Power

Reader

Host Computer

Interrogator

Multiple RFID tags

Central data base

Communications Network

Workstation

Workstation

Workstation

Workstation

Attenuator or Amplifier


Demodulator Modulator

Processor

Power supply

Receiver Transmitter

Antenna

Receive / transmit switch

13

71

PackagingData Handling

3

111

Interrogator

Multiple RFID tags

Central data base

Communications Network

Workstation

Workstation

Workstation

Workstation




Processor

Power supply


Antenna


1313

711

PackagingData Handling

33

111111

2003 RFID Patent Map

Readers




Processor

Power supply


Antenna


174

1

116

1

Packaging 14Data Handling2

Tags

Numerical Patent Overview

4,279 RFID patents listed in High Impact Patent Database Intermec patent portfolio

140 patents -- one of the largest RFID portfolios Intermec not obligated to provide any limited "free" licenses Patent infringement lawsuit already underway against Matrics/Symbol Widespread concern about licensing terms

Only one of 20 RFID patent portfolios with key blocking patents Checkpoint Motorola Micron Alien Lucent Sarnoff BTG

Others likely to watch and copy what Intermec does

RFID Patent Activitytrends in yearly USA RFID patents filings

Number of Patents per year

0

100

200

300

400

500

600

1965 1970 1975 1980 1985 1990 1995 2000 2005

11 Micron Technology, Inc. (Boise, ID)10 Intermec IP Corp. (Woodland Hills, CA, Beverly Hills, CA)8 The Goodyear Tire & Rubber Company (Akron, OH) 7 International Business Machines Corporation (Armonk, NY)7 NCR Corporation (Dayton, OH) 6 Moore North America, Inc. (Grand Island, NY, Stamford, CT) 5 Symbol Technologies, Inc. (Holtsville, NY)5 X-Cyte, Inc. (San Jose, CA) 5 Xerox Corporation (Stamford, CT) 4 Gilbarco Inc. (Greensboro, NC) 4 Hewlett-Packard (Houston, TX, CO, CA)4 Marconi Communications Inc. (Warrendale, PA)4 Metrologic Instruments Inc. (Blackwood, NJ) 4 Silverbrook Research Pty Ltd (Balmain, AU)3 3M Innovative Properties Company (St. Paul, MN)3 BellSouth Intellectual Property Corporation (Wilmington, DE) 3 Brady Worldwide, Inc. (Milwaukee, WI)3 Harris Corporation (Melbourne, FL)3 Koninklijke Philips Electronics N.V. (Eindhoven, NL) 3 Lincoln Global, Inc. (Monterey Park, CA) 3 Micro Beef Technologies, Ltd. (Amarillo, TX) 3 PSC Scanning, Inc. (Eugene, OR) 2 Access Business Group International LLC (Ada, MI) 2 Amerasia International Technology, Inc. (Princeton Junction, NJ)2 Automotive Technologies International Inc. (Denville, NJ) 2 Creative Kingdoms, LLC (Germany, Rhode Island)2 HID Corporation (Irvine, CA)2 Hill-Rom Services, Inc. (Wilmington, DE) 2 Hitachi, Ltd. (Tokyo, JP)2 Lucatron AG (Baar, CH)2 Matsushita Electric Industrial Co., Ltd. (Osaka, JP) 2 Microchip Technology Incorporated (Chandler, AZ) 2 New Flyer Industries (Manitoba, CA) 2 RF Code, Inc. (Mesa, AZ) 2 Siemens Aktiengesellschaft (Munich, DE)2 Sierra Design Group (Reno, NV)2 Thermal Solutions, Inc. (Grand Forks, ND, Wichita, KS)2 TRW Inc. (Lyndhurst, OH)

Companies not yet heard from in 2003 Impinj Checkpoint Motorola TI Philips

2003 RFID Patent Assignments

2003 Patent Assignments

4

2

CT-2

DE-3

3

3

1

3 1

1 1

MA-2

MD-1

4

22

1NH-1

NJ-6

1

6

4

1

RI-2

1

7

2

VT-13

3

24

5 5

5

4

2

CT-2

DE-3

3

3

1

3 1

1 1

MA-2

MD-1

4

22

1NH-1

NJ-6

1

6

4

1

RI-2

1

7

2

VT-13

3

24

5 5

5

Country # Patents Country # Patents

U.S. 108 Bermuda 1

Germany 11 Denmark 1

Japan 7 Israel 1

U.K. 5 Italy 1

France 4 Korea 1

Canada 3 Netherlands 1

Switzerland 3 New Zealand 1

Australia 2 South Africa 1

Singapore 2 Sweden 1

Taiwan 1

Qualitative Analysis RFID Patent Databases

"High Impact RFID" Patent Database 1st level USPTO database word searches (4,279 patents)

between 1974 and 2003 derived from word searches 2nd level review of only some 2003 patents Excellent summaries of 80 2003 issued patents No quality ratings or legal review Summary info & analysis presented in WORD format

Sourland Mountain RFID Patent Database 1st level USPTO database word searches (4,000 patents) 2nd level sort based on abstract & figure review (300 patents) 3rd level review by multiple technical & legal experts (top 30) Benefits from the technical & legal review & comment:

20 technical experts 10 patent lawyers at 7 different companies & organizations

Summary info in EXCEL database format

RFID Patent Classifications

Tag Chip memory frequency synchronization power extraction, regulation &

management Tag Structure

chip packaging batteries & energy storage manufacturing

Antennas readers & tags impedance transformation & resonance

Protocols anti- collision protocols wireless data transport security

Reader low- noise transmitters & receivers

Systems exotic reader/tag combinations range & location sensing testing

Applications libraries retail security

Data

Technical Quality Ratings

A The most significant blocking RFID patents. They usually include a breakthrough technical specification and will be extremely difficult or impossible to work around.

B Important patents with key technical innovation that appear to be difficult to work around when designing certain RFID products.

C Useful patents with significant technical innovation but narrower scope. While they have technical merit, there are alternative solutions that could be implemented if necessary.

D Secondary patents that -- while perhaps useful for some special products -- appear only marginally useful in mainstream RFID applications.

All quality ratings assume that the patents will be proven valid.

Patent Assignments

Primarily based on the patent itself.

Updated to reflect the sale or exclusive licensing of the patent to another party based on the claims of the other party.

The details of such assignments are of course unknown to anyone except the direct parties to the assumed Agreement.

Patent Numbering

Why are most of the patents organized under USA patent numbers? Although many of the key RFID patents originated in

non-USA countries, virtually all worldwide RFID patents are issued USA patent numbers at some point.

Faster and easier to use a single reference number for each patent.

Patent Ownership Summary

Company A-Patents B-Patents C-Patents TotalIntermec 7 13 9 23%Checkpoint 1 8 10 10%Motorola 3 5 6 10%Micron 1 5 7 7%Avid 2 2 -- 5%Lucent 1 3 2 5%BTG -- 3 2 3%TI 1 -- 2 2%Sarnoff 1 1 -- 2%3M 1 -- -- 2%Alien 1 -- -- 2%Marconi -- 2 1 2%Northrup -- 2 1 2%Tadiran 1 -- -- 2%Tek 1 -- -- 2%U of Pittsburgh 1 -- -- 2%Others -- 20 25 19%

Summary & Future Options The Current Situation

Key patent holders are offered nothing and are demanding high licensing fees Widespread RFID litigation almost certain If patent holders win, licensing fees could approach 50% Even if patent holders ultimately lose, litigation will take years

270 different vendors, 20 major patent owners, over 4,000 patents Testing even a few of these patents in court will cost millions of dollars Uncertainty will delay both RFID manufacturing & adoption by users

All RFID manufactures equally exposed Both litigation and licensing costs are passed on to users

Change the product and interface specifications Patent problems mostly unrelated to any particular specification Performance degradation Increased costs of non-optimal design Specification changes are unlikely to alter the legal outcome significantly

Enlist Government or Consortium Help Can anyone force companies to surrender it's patents without compensation?

Settle matter out-of-court via a patent pool or similar remedy

RFID Patent UpdatePatent OverviewCommonly PatentedRFID System Components Basic Tag ComponentsTag PowerPower TransferTag ClockClock ExtractionTag LogicAnti-CollisionTag MemoryTag Communication & ModulationTransport ModulationBasic Reader Components2003 RFID Patent MapNumerical Patent OverviewRFID Patent Activitytrends in yearly USA RFID patents filings2003 RFID Patent Assignments2003 Patent Assignments Qualitative Analysis RFID Patent Databases RFID Patent ClassificationsTechnical Quality RatingsPatent AssignmentsPatent NumberingPatent Ownership SummarySummary & Future Options

Documents

RFID Patent Assets