Purpose of this Discussion

Purpose of this PresentationConsider Acquisition of Patent RightsExplore A Mutually Beneficial Business Opportunity11We are the originators of modern streamingWe possess some very valuable IPWe understand patents and rights enforcementWe have one patent application just allowed and others pending for fingerprinting technologiesA deal with Surfer will give the opportunity to gain a proprietary position and shut out competitors

Surfer is Sophisticated in IP223How Does SurferNETWORKs Business and the Acoustic Fingerprinting Business Relate?

SurferNETWORK connects directly to radio stations at the studioHalf of Shazam or SoundHound users are listening to broadcast radio3QUICK ANSWERWe Provide the Fingerprinter With a Direct Connection to Radio Stations4How Does SurferNETWORKs Technology Improve the Acoustic Fingerprinting Business?4Whats In It For The Fingerprinter5Whats In It For UsIncreased EfficiencyMore Rapid & Accurate Song RecognitionLower CostsPotential New Business OpportunityIP Protection from CompetitorsMore Accurate Artist & Title Presentation to ListenersBetter Strategic Position in Our IndustryPotential New Business OpportunityIP Protection from Competitors5How the Streaming Business Works

Radio Stationone copy of audio streamplus metadataDistributionServeraudioAudience6

encodingcomputermetadataGREEN: We own or controlbroadcast automation systemaudio plusrich media content(lyrics, photos, album info)6Artist & TitleStart time (implicit or explicit)Duration(and most stations also include info on Commercials)Metadata Includes:77Much of Artist & Title is Inaccurate(which we manually repair)No Artist & Title for Most Syndicated Content(min. of 125 syndicators in the U.S.)Cant present rich media content(Caused us to initiate R&D program on fingerprinting)

And, many radio stations cant transmit RDS because their song metadata is garbageOur Issues:88Example of Bad A&T Metadata9

(and this many more)9Objective is to reduce the number of deep dips into the database (millions of rows)Circumstance: two users in the same area request recognition of the same song from the same radio station shouldnt that be easy?But Fingerprinter doesnt know what any radio station is currently playingMust use elaborate procedure to deduce the identity of the broadcaster on most recognition requestsSee US Patent Application 2011/0099197 by Wang (Shazam)US Patent Application 13/480,445 by Master (SoundHound)US Patent 8,453,170 by Briggs (BMI)US Patent 8,639,178 by Anniballi (Clear Channel)Fingerprinter Issue to Solve1010What We Could Do For Fingerprinter(non-syndication)

Radio Stationone copy of audio streamplus metadataDistributionServeraudioAudience11

encodingcomputermetadataGREEN: We own or controlbroadcast automation systemaudio plusrich media content(lyrics, photos, album info)metadata and/or audiofor everyaudio event

station providesIDcorrectedA&T returnedFingerprinter11Avg. 25 music stations in each of top 100-200 Metro/DMA listening areasEach station playlist has about 250 unique songsPlaylist changes slowlyStation plays the 250 songs 7500 times/mo.1. Radio Station Operation & How It Would Work for Fingerprinter1212Station identifies itself, so you know listening areaYou compile a playlist for each stationYou cross-ref songs in playlist with corrected version of A&T (song ID)Instantaneous with start of play, you receive metadata (or a fingerprint, or a snippet of audio)You know the start timeYou know the stations version of A&TYou know the durationLookup the stations A&T in the playlist2. Radio Station Operation & How It Would Work for Fingerprinter1313User requests song recognitionYou know listening area of userYou know the 25 stations in that listening areaYou know the 25 songs being played by those stationsYou know the start time of each song and the time expired since the startYou know how many seconds into each song to compare the fingerprint3. Radio Station Operation & How It Would Work for Fingerprinter1414154. Only Need To Compare A Small Part of Each Song

song 1song 2song 3current timecompare fingerprint hereShowing Start of Each SongSignificanceFor half of all song recognition requests you only need to analyze a few milliseconds of audio for an average of 12.5 songs1616What We Could Do For Fingerprinter

Radio Stationone copy of audio streamplus metadataDistributionServeraudioAudience17

encodingcomputermetadataGREEN: We own or controlbroadcast automation systemaudio plusrich media content(lyrics, photos, album info)continuous audio or fingerprint duringsyndication

station providesIDcorrectedA&T returned( for syndication)Fingerprinter17We have a Customer Control PanelStations input their syndication scheduleWe could provide that to FingerprinterYou will know when to use each techniqueDuring syndication you need to fingerprint & analyze each song, just as for a userBut, you will compile a syndication playlist for each syndicatorSo, your identification of songs being played will be quick, just compare against the playlistHow It Would Work for Syndication1818

Surfers Business OpportunitySong IDsoftware19

We provide the Song ID software to our existing customers as part of our serviceAnd to other radio stations around the world for a fee

19Whats In It for the Radio Station?

audio segment sent to serverreturn Artist & TitleThey get brand recognitionShazam example20and Station IDYou are listening to WXYZ 101.5 FM20Possible New Business OpportunityLow Cost Auditing Service for Radio Stations and Advertisers2121Media Monitors, LLC., ASCAP, BMI operate acoustic fingerprinting services to monitor and audit radio stations to count song and advertising playsASCAP & BMI represent copyright holdersBMI already has a deal with Shazam for acoustic fingerprintingNielsen provides services that include obtaining Artist & Title to present on a radio stations website or media playerThey make money by selling songs

Current Operation2222

Ex. Media Monitors, LLC Monitors 2500 stationshas physical plant in 200 listening areasEach facility has radio receivers and computers, one dedicated radio receiver per stationSends acoustic fingerprint to datacenter for analysis

Costly to Operate2323Be the Data Provider for These Organizations

Radio Station

Song IDsoftwaremetadata or acoustic snippetInternetfingerprintDBserveraudioReportsWeb pagesMedia playersNo Capital EquipmentJust a piece of software2424SUMMARY25Brand Recognition for Listeners using Fingerprinting AppAccurate Artist & TitleEven for Syndicated MusicCan Utilize RDS/HD to Present Artist & Title on DashboardBenefits to Radio Stations262627Fingerprinting is a Turbulent Market

SoundHoundSpotify does deal with SoundHound, Purchases The Echo Nest

Googleenters Music RecognitionLower Costs Simplified Processing right now must use elaborate procedure to deduce the identity of the broadcaster on most recognition requestsNew Business OpportunitiesLock in a Protected Market Position with Patent Protected IP Benefits to Fingerprinter28Why let a competitor?28This presentation does not incorporate Group D: Companionship Between a Car Radio Receiver and a Smartphone to Provide Artist & Title to the Head Unit for Stations Not Transmitting A&TGroup E: An Improved Method for an Acoustic Fingerprinting Service Provider to Deliver Advertising Having Special Promotions 29END NOTE