WEARABLE TECHNOLOGY

AN INITIAL EXPLORATION ON THOMSON REUTERS OPPORTUNITIES 2013 WEARABLE TECHNOLOGY WORKSTREAM

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CONTENTS EXECUTIVE SUMMARY ............................................................................................................................................. 2

WHO ARE WE? ............................................................................................................................................................. 4

WHAT IS WEARABLE TECH? .................................................................................................................................... 4

SMARTGLASSES ............................................................................................................................................ 4

SMARTWATCHES .......................................................................................................................................... 5

FITNESS BANDS ............................................................................................................................................. 5

MAKING THE INVISIBLE VISIBLE ................................................................................................................ 5

CHALLENGES AND LIMITATIONS OF WEARABLE DEVICES ............................................................................. 6

WHY ARE WE EXPLORING WEARABLE TECH? .................................................................................................... 6

WHAT ARE THE OPPORTUNITIES FOR US? ......................................................................................................... 8

LAW ENFORCEMENT .................................................................................................................................... 8

ATTORNEYS ............................................................................................................................................................. 9

THOMSON REUTERS EMPLOYEES ....................................................................................................................... 9

FITBITS ..................................................................................................................................................................... 9

BEACONS ................................................................................................................................................................ 10

PACKAGED CONTENT .......................................................................................................................................... 10

CITIZEN JOURNALISM ......................................................................................................................................... 11

HOW CAN WE SELL IT? ........................................................................................................................................... 11

CONCLUSION............................................................................................................................................................. 14

APPENDIX A: BUSINESS MODEL FLOW DIAGRAMS ......................................................................................... 15

APPENDIX B: CITIZEN JOURNALISM ................................................................................................................... 17

APPENDIX C: RINGU ................................................................................................................................................ 20

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EXECUTIVE SUMMARY

Wearable computers aren’t new, but the technology is now starting to enter the mainstream market in record pace. Sensors and chips are decreasing in size and price, and customer demand is growing. We live in an always-connected, 24/7 culture, where constant awareness is not only acceptable, but for many, a necessity. Wearable devices, such as smartglasses, smartwatches, and fitness bands, allow users to maintain an ambient awareness, thanks to contextual computing. The ability to know where our customers are and what devices they are using presents us with the opportunity to deliver exactly the right information, at just the right time, presented in a way that’s been developed with their screen size in mind. In August 2013, over 70 Thomson Reuters employees from across the globe came together to explore what opportunities wearable technologies might offer to the corporation. The investigation was divided up into four tracks: (1) market evaluation; (2) application and user scenarios; (3) business models; and (4) core technologies. After three months of work, the results were clear: wearable technologies absolutely provide us with immediate business opportunities, as well as several for the longer term. Wearable devices allow us to leverage data that we already have in new and interesting ways. Right now, we see real value in bringing CLEAR data to Google Glass for law enforcement, where situational awareness is essential. When a police officer encounters an individual, having key information about that person appear right in the officer’s field of vision would be extremely valuable. It would allow him to make sure the person doesn’t leave or attempt to conceal evidence, while at the same time, let him know if the person is likely to be carrying a weapon or might try to harm him in some way. Presenting our data on Glass, which features voice interaction, allows the officer to keep his hands free throughout the entire encounter. Additionally, an officer could instantly access information about a vehicle and its owner by simply taking a picture of a license plate with Glass and connecting it to our CLEAR data. This could be used during crime scene sweeps, distribution of parking tickets, and a wide host of other situations. A proof of concept showcasing this capability has already been built by one of our employees. Thomson Reuters Special Services has created a threat detection product which uses sophisticated algorithms to locate potential threats in social media postings. Facebook, Twitter, and Instagram are commonly used to organize and facilitate crimes such as flash mobs, robberies, drug deals, and gang retaliations. It would be highly valuable for a police officer, when entering a location or encountering an individual, to be immediately alerted on Glass as to any recent social media postings in that area or by that person which we have identified as a possible threat. Another immediate opportunity we discovered involves the subsidizing of Fitbit fitness bands for interested Thomson Reuters employees. Fitbits passively collect health data to provide users with an awareness of their activity levels and sleep quality. The Fitbit corporate program allows employees to keep this data completely private, or to share it in the aggregate so that they can participate in friendly competitions with their co-workers. This new awareness would lead to healthier and happier employees, which would equate to fewer visits to the doctor and a reduction in sick days. We believe

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that adding the Fitbit as a health benefit option could potentially save Thomson Reuters several million dollars in health care costs. A little bit down the road, we see several wearable technology opportunities for attorneys. One example is the ability to simply pull up cases, statutes, and KeyCite information from WestlawNext on Glass. This would allow an attorney to access the data from anywhere: in the courtroom, in a deposition, or out on a run. While attorneys currently have access to this data on their smartphones and tablets, bringing it to Glass would allow them to receive the just the right information at just the moment of need, without disruption or losing eye contact with a jury, witness, or judge. We also see an interesting opportunity for attorneys which would integrate WestLegalEdCenter CLEs into a fitness band or smartwatch and tie them to their fitness goals. An example might be that a free CLE is earned after an attorney has listened to a certain number of CLEs while running for a specified distance or time.

RECOMMENDATIONS

First, we recommend that early access funding from the Neil Masterson innovation program be leveraged to bring CLEAR to Glass for law enforcement. There is high customer demand for this product, and the content already exists. Using our data in this new way presents us with the unique opportunity to increase our customer base as well as affirm our position as market leaders and innovators. Next, we recommend that subsidized Fitbits strongly be considered as an option within the health and wellness offerings for employees. It’s a smart and easy way for us to significantly lower healthcare costs, while at the same time, increase employee health, happiness, and productivity. Finally, we recommend that the notion of the continuous client be kept in mind and naturally considered as a part of the product design process. There will soon be countless vehicles for delivering alert-based notifications, such as smartwatches, glasses, rings, and wristbands. When creating new products, it will be important for us to ask whether there might be a wearable technology component to them. Keeping alerts in mind won’t drive new revenue sources, but it will likely create additional content channels. Our Breaking Views app is an example of a successful product which was built in this manner.

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WHO ARE WE?

When Bob Schukai announced the wearable technology workstream on the Hub in August 2013, he invited anyone who was interested to join the group. The only requirements, other than interest, were permission from your manager and a willingness to put in up to 20 hours a month.

It didn't matter where you worked, nor did you need to have particular skills or expertise. Indeed, diverse participation from across the business would be key to the group's effectiveness.

Over 70 people signed up.

Geographically, we come from locations across the US – Minnesota, New York, California, Virginia, Georgia – and beyond: the UK, Australia, Singapore and more. Organizationally, we represent Legal, Technology, Finance & Risk, Special Services, Emerging Technology, IP & Science, and CLEAR.

With so many participants, we were able to create four smaller working groups, to explore different aspects:

Application and user scenarios Market evaluation Core technologies Business models

Groups were created on the Hub to share information and ideas, to host discussions, and to collaborate on documentation. Meetings were held using Google Hangouts and Webex, and recorded so anyone who couldn't be there at the time could catch up.

WHAT IS WEARABLE TECH? Wearable technology refers to any computer or advanced electronic technology that can be worn on an individual’s body. There are many wearable devices, but due in large part to the short time frame of our workstream and the availability of current devices, our focus came down to three main categories: smartglasses, smartwatches, and fitness bands.

SMARTGLASSES Google Glass (“Glass”) is the most well-known example of smartglasses, and one for which we see great potential for our customers. Glass is a wearable computer with an optical head-mounted display that displays information in a smartphone-like, hands-free format that can take photographs, videos, phone calls, and communicate with the Internet via natural language voice commands, a touch pad, or even the wink of an eye.

Other smart glasses we considered include ION Glasses (a simple smartphone companion for displaying LED-based notification alerts) and Recon Jet (a ruggedized Glass-like heads up display targeted for use in sports). None of these devices are commercially available at this time; however we

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had access to three Glass devices through Thomson Reuters employees that were invited into Google’s Explorer program.

SMARTWATCHES A smartwatch is a computerized wristwatch with functionality that is enhanced beyond timekeeping. Many early models allow users to read emails, text messages, incoming caller ID, and other alerts. Many collect information from internal and external sensors and allow for gesture or touch controls. The current smartwatches control and receive data through a Bluetooth connection with a smartphone. As smartwatches evolve, some will be capable of making and receiving calls, as well as running mobile apps. Others, such as the Omate TrueWatch, will be standalone devices with the ability to operate independently from a smartphone.

Indicative of the potential market for smartwatches, the Pebble e-ink smart watch (pictured) was funded on the crowdfunding site, Kickstarter. Despite initially seeking $100,000 (USD) in funding, their campaign brought in more than $10 million (USD) and the device is now widely available at large retailers such as Best Buy and Amazon.com. Samsung, Sony, and Qualcomm also introduced smartwatches this year, to mixed reviews. Apple and Google, along with many small startups, are rumored to have smartwatches in the works.

FITNESS BANDS Fitness bands collect biometric data from a user, such as the amount of steps taken, stairs climbed, and quality of sleep. Examples of fitness bands available today are the Fitbit (which has several models, Force pictured at left), the Jawbone Up, the Nike Fuel Band, the Misfit Shine, and the Withings Pulse, among others. These devices typically come in the form of a watch-like band worn on the wrist, or a small device clipped

somewhere on the body. These devices gather the information from the user via motion sensors and then provide the data to the user via a smartphone app.

MAKING THE INVISIBLE VISIBLE Years ago, the Cyberpunk science-fiction author and futurist Bruce Sterling came up with a set of principles for his “green” Viridian Design movement. One of these was “Make the Invisible Visible.” This was defined thus:

Our primary advantage over previous generations of artists and graphic designers is that we can see much better than they could. We can manipulate, store, create and analyze graphic imagery with historically unprecedented ease and power. This trend should be recognized, advanced, and artistically exploited. Advances in instrumentation can be used to change the zeitgeist. If carbon dioxide were blood-red, our skies would look ominous indeed.

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Part of the use-case for wearable hardware is precisely this: showing us things we can’t normally see – be it directions to a location, car registration details, a person’s name when presented with their face, the daily amount of physical activity undertaken, or even how long and how well we sleep. We can imagine networks of sensors broadcasting current temperature, humidity, wind speed and other environmental characteristics to wearable devices. Locations could be beaconing their co-ordinates, or their current utilization. Highways could transmit data about the current average speed and transit time to the next junction. Anything that we can imagine can be instrumented, can have that data broadcast. And a wearable system can receive that data, process it, and display it. Imagine being able to see temperature, or queuing time for the theatre, or how many hot dogs the cart still has to sell, and how long the queue is… Wearable hardware like Glass can be seen as a sort of extra sense, a fungible, flexible extra sense that hijacks part of our high-capacity visual and audible bandwidth to overlay a data channel for another sense. Truly making the invisible, visible.

CHALLENGES AND LIMITATIONS OF WEARABLE DEVICES As Sonny Vu, CEO & founder of Misfit phrased it, with wearable devices, “we’re in the first half of the first inning of a nine inning game.” Because we are in such early years, limitations such as poor battery life, voice recognition errors, social etiquette questions, privacy concerns, reliance on companion smartphones, security, and authentication issues are all very real. While the current limitations of these devices can’t be ignored, we feel strongly that these issues will undoubtedly be resolved as customer demand increases. Over time, proper etiquette and reasonable expectations of privacy will emerge, just as they did with emergence of the smartphone. The technology will also improve. Devices will become thinner and lighter allowing for more aesthetically pleasing forms that appeal to a wider range of audiences. The Achilles’ heel of any mobile device, battery life, will also improve as components become more efficient and battery technology advances. We feel that regardless of the current limitations, Thomson Reuters should position itself to be at the forefront of these mobile trends so that we will be in an ideal position to capitalize on them as markets mature, rather than be forced to catch up to competitors.

WHY ARE WE EXPLORING WEARABLE TECH?

In 1977, Ken Olsen, founder of Digital Equipment Corporation said “There is no reason anyone would want a computer in their home.”

In 1984, technology and computing columnist John Dvorak said “The Macintosh uses an experimental pointing device called a ‘mouse’. There is no evidence that people want to use these things.”

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On the launch of the iPhone in 2007, RIM/Blackberry founder and CEO Jim Balsillie said, “‘It’s kind of one more entrant into an already very busy space with lots of choice for consumers … But in terms of a sort of a sea-change for BlackBerry, I would think that’s overstating it.”

It’s not always easy to see the potential of new technologies, but dismissing them out of hand can prove costly.

Wearable technology is, according to many analysts, a market ready to explode.

Credit Suisse IT Hardware Analyst Kulbinder Garcha predicts that the market for wearable technology will increase tenfold to as much as $50 billion over the next three to five years.

In 2012, Gartner predicted that by 2016, wearable smart electronics in shoes, tattoos and accessories would emerge as a $10 billion industry.

In their 2013 report, Gartner says that “wearables [are] quickly moving into mainstream society.... Within five years, consumer wearables will become more sophisticated, capturing what the user sees, hears or even feels … The technical hurdles ... are quickly eroding; opening doors to creative minds determined to exploit this technology for commercial gain as evidenced by sizable investments in wearable technology from Samsung, Google, Apple and Microsoft.

Juniper Research identifies 2014 to be the watershed year for wearable devices – in terms of roll outs and market traction, and notes that large influential players such as Google and Apple have already made key strategic moves in this sector.

For all the excitement about the wearable hardware, it will be the applications that run on these devices - and the experiences and value they deliver - that will cement wearable technology in people's lives. And once wearable devices part of a person’s expectation, they’ll expect us to be there too, just as they did with personal computers, smartphones and tablets.

We're already seeing some of our customers embracing both the current reality and the potential of these technologies - like trial lawyer and blogger Mitch Jackson’s imaginative post “How This Trial Lawyer Will Use Google Glass in 2015 (or sooner)” .

We must be on forefront; exploring the possibilities for our content, services and solutions on this emerging technology. If we can build new products that add real value on devices that our customers will already be wearing, we will affirm our position as industry leaders. As we began exploring wearable technology, we were very mindful of the fact that we need to think of products that will really add value. We cannot and should not simply recreate something that is already available on a smartphone, tablet, or desktop computer, just because it’s possible.

So, we began by looking at what makes wearable technology unique.

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Timothy Jordan, a developer advocate for Glass, remarked: "The world is the experience...developers building for Glass shouldn’t create experiences that compete with the world. Rather, they should be upgrading a user's ability to find value in the world around them." Technology shouldn't get in the way. We want to find the ways that wearable technology will allow us to deliver our relevant, authoritative, and trusted data to our customers at just the right time, and in just the right place.

WHAT ARE THE OPPORTUNITIES FOR US? The group came up with several ways in which we could bring value to our customers by leveraging our existing content in new ways on wearable devices. Due to the short timeframe of the project, the focus was quickly narrowed, and other ideas were preserved on the Hub for any later iterations of the workstream that might occur.

LAW ENFORCEMENT The potential value that wearable technologies offer to law enforcement is undeniable, and many precincts have already started investing in body cameras and other devices. Much police work is done outside of a patrol vehicle, without access to a laptop. Officers often patrol on foot, bicycles, motorcycles, horseback, and even Segways, so the ability to interact with Glass by voice is of significant value. They might encounter a person of interest at a crime scene, during a murder investigation, on a street corner, in a mall, or during a large convention. Delivering key information about that person immediately to an officer’s Glass would help keep the officer safe. We already have this key information in our CLEAR database: mug shots, outstanding warrants, previous violent offenses, (including previous violence against law enforcement officers,) likelihood that the person is carrying a weapon, and more. The sooner the officer knows this information, the safer and more efficient she will be. If we deliver our CLEAR data to a new device like Glass, it would be relatively low-cost and low-risk to us, while being of extremely high value to law enforcement. Glass could use OCR technology to scan a person’s identification to initiate a CLEAR search.

This type of application would not be limited to police officers. Any professional that would benefit from situation awareness is a potential customer: countless bureaus, agencies, border patrol, insurance investigators, etc. Additionally, current CLEAR customers might purchase more licenses. While only a couple of people might have access to CLEAR at a desktop computer now, if a Glass app

Kevin Zimmerman has already created a proof of concept for this scenario. The app allows a user to take a photograph of a license plate with Glass, and it returns dummy information about the vehicle. This could be used by officers on patrol to issue tickets.

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was developed, it’s likely that they would want to increase the number of licenses to include many officers on the street.

Thomson Reuters Special Services has created a threat detection product which will be entering the market in 2014. Again, we have the opportunity to leverage an existing product on Glass for law enforcement. The threat detection software uses sophisticated algorithms to assess potential threats in social media postings. Criminals, like everyone else, are using social media in increasing numbers. Facebook, Twitter, and Instagram are commonly used to organize and facilitate crimes such as flash mobs, robberies, drug sales, and gang retaliations. It would be of very high value for a police officer, when entering a certain location or encountering a certain individual, to be immediately alerted to recent social media postings in that area or by that person which appear criminal in nature.

ATTORNEYS Glass allows for immediate access to content without a barrier between an attorney and her audience. This allows the attorney to maintain eye contact and establish rapport with a jury, the judge, witnesses, experts, and opposing counsel. While features such as combining facial recognition with our WestlawNext profiler databases are likely down the road, it would make the most sense for us to start off by bringing the basic research functionality which our customers are already used to seeing to Glass. Examples would be cases, statutes, KeyCite, and the ability to receive alerts. Also, having the ability to receive alerts on a smartwatch would likely prove useful to an attorney. We also explored the idea of combining wearable devices with CLE’s. For example, an attorney could listen to a WestLegalEdCenter CLE while going for a run and use a smartwatch or fitness band to control the playback and confirm attendance. Gaming techniques could be implemented to correlate the attorney’s fitness goals with the CLEs, offering credits, discounts, or free CLEs as incentive.

THOMSON REUTERS EMPLOYEES

FITBITS Fitness bands are a fun and easy way to help employees improve their health. The devices passively collect health data, providing the user with an awareness of activity and sleep levels and identifying areas of improvement. This should significantly lower the corporation’s health care costs by decreasing absenteeism and insurance costs. Employees would also save money with fewer visits to the doctor. Healthier employees also mean better productivity. Fitness bands also make it easy for employees to participate in fun corporate challenges. Fitbit has an established, easily adoptable enterprise programs that enables corporations to integrate the product right into their wellness programs. In the future, wristbands could do so much more than track activities for employees. For example, they might also provide authentication and verification at all Thomson Reuters locations, grant access to buildings; authenticate an employee on computer networks; replace WestlawNext and Eikon passwords; and make secure mobile payments.

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BEACONS One of the most talked about new technologies is Bluetooth Low Energy transmitters, also known as beacons or (iBeacons in the Apple world). Beacons transmit a little bit of identifying information that can be used by applications running on wearable technologies to determine the device owner's location. Once an application has information about where the user/device is located, it could provide information keyed to that location. For example, an app for a retail store could display coupons or sales ads keyed to the user’s location in the store, the user’s location being determined using beacons. In an office setting, applications using beacon information to determine location could be used to check conference room schedules, determine a user’s location in a building, or automatically populate the agenda and meeting materials to a mobile device. Jay Lieberman and Jose Hernandez created a Proof of Concept for the use of the new iBeacon API. The goal was to use a beacon proximity as the trigger to notify the user about some interesting offer or fact available nearby. They focused mainly on the locations serving food or beverage within the Eagan facilities. For example, as a user walks by Caribou Coffee, a notification is displayed on the user’s device. The user can then open the application and is presented with the Caribou Coffee mobile web page showing a couple of available deals. Similarly, the user may walk by the cafeterias and the application will present the corresponding menu for the day. The implemented POC uses region detection to learn about the proximity to a given location. Then it starts “ranging” the beacons within the location to provide a more accurate and targeted information. For example, the application could potentially show different information as the user enters, approaches a given food station or pay stations, or leave the location. In the future, these alerts could appear on watches and Glass in addition to smartphones, allowing for directions within the building.

PACKAGED CONTENT We have a host of premium content at Thomson Reuters. If we were to create a customized collection of this content based upon user-specified subjects of interests for a set amount of time, it could be consumed at any time away from the customer’s desk, and on any device: on a commute, on a run, etc. The Runtastic app contains a “story run” feature, which is a 30-40 min story that the user can select to listen to while on a run. We could add our curated content to the selection of stories, and dictation services such as Acapela Group or Cereproc could convert the text into sound. Taking it a step further, if a user has already heard a certain news story, they could hit a button on their

Screenshots of Jay Lieberman and Jose Hernandez’s iBeacon proof of concept.

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smartwatch to skip to the next piece, or another button to rewind. Perhaps buttons could also be assigned a “like” or “dislike” feature so that future content sent could be increasingly relevant to the customer.

CITIZEN JOURNALISM Wearable devices are more accessible and readily available to record real-time events than smartphones. Anyone could take photographs with a smartwatch or Glass and then instantly contribute them to the news products of Thomson Reuters. This could involve an individual capturing a catastrophic event where time is of the essence, or discretely capturing an image in a remote or otherwise inaccessible area. Submitted images would be vetted by Thomson Reuters personnel before publishing, but if done quickly, this could provide our company with an additional edge in reporting breaking news events before competitors. Users are also incentivized to submit images by the possibility of seeing their work published by a major news organization along with the accompanying photo credit. This concept considers only wearable devices currently available, but there is no reason this concept could not be extended to apply to future devices, or to other mobile devices such as smartphones or tablets. It should be noted that numerous competitors to Reuters News are currently in this space such as CNN, BBC, and recently USA Today. The Your Take service by USA Today leverages their smartphone and web apps to capture images, as well as their widely followed social media channels to spread the word about featured submissions. Reuters previously attempted this concept with “You Witness News” but it was attempted in a time when the market hadn’t been saturated with mobile cameras such as it is today, and social media was virtually non-existent. A similar effort today, if done well and properly leveraging social media channels such as Facebook and Twitter, could be very successful by providing Reuters News with the consumer connection it needs. For more detail on this concept, please see the appendix of this document.

HOW CAN WE SELL IT? Since wearable technology is still at early stages of adoption, new and enhanced business opportunities that draw on the functionality the technology brings are still emerging. The most advanced market for wearable technology is currently in the health and fitness category. Some of the business models introduced below either work on applications directly in this category, or could make use of the same devices since it’s likely that these are the ones that customers are likely to already have. It is worth noting that several business models present a significant up-side which would justify supplying a new wearable device to the customer as part of their subscription. We know that customers would be willing to pay an increased subscription if they feel they were getting something in return, and so promoting the extra value they can get would reinforce adoption of the devices themselves.

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Wearable technology should not be viewed as only an extension of mobile, nor as standalone products in their own right. They offer new methods of data collection and interaction, where the number, duration and depth of tasks being performed are reduced, but where the benefits of convenience / ease of access can make the case for their use compelling. We have clustered potential use cases into five types. These five clusters vary both in the direction that data flows and degree of interaction required. In turn, this has an impact on how the different models generate value, where that value accrues, and what type of revenue streams might be accessible. Flow diagrams showing how data / value and payment flow in each use case are given in Appendix A.

Passive Active

Ou

tpu

tIn

pu

t

Making your

identity / preferences

portable

Increasing

productivity / health

Bringing you

relevant info wherever you are

Capturing

new user-input data

Capturing

new data-points

automatically

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Model Summary Example

Making your identity / preferences portable

Value from time saving / convenience = Price premium or increased retention Wearable Tech acts as trigger for you location and enables continuous client by bringing your preferences with you.

TR or external -Wristband with GPS / NFC to support identification and log-on to business systems

Increasing productivity / health

Value from reduction in sickness absence / increase in productivity = Cost saving Wearable Tech used by individual to monitor and manage their fitness. Independent of business use but capitalizes on health / fitness as first category where wearable tech has become mainstream

TR internal - Provide FitBits to employees who actively participate in wellness plans

Bringing you relevant information wherever you are

Value from accessing information where and when you need it to make better decisions = Price premium or pay-per-use Wearable Tech used as way to access information and to capture trigger for the context of the information, e.g. location, person nearby

External – Police Officer license plate look-up through CLEAR app on Glass. Also KeyCite, WestlawNext, Eikon access via Glass / Smart Watch

Capturing new user-input data

Value from capturing new sources of data that aren’t possible / practical today = Price premium for new data / insight Wearable Tech used in places where other methods of data capture isn’t possible. Tech also used outside current customer base to: Access greatest range of content; and Build pipeline of new customers

External – Citizen journalism and Courtroom verdicts / judgement / names of opposing attorneys. Both through Glass or Smart Watch apps. Capture images and / or metadata such as location, dictated names etc

Capturing new data-points automatically

Value from simplifying the data capture process by doing parts automatically = Price premium / new product / micropayments for each piece of data captured accurately Wearable Tech captures data such as location and start/end times when triggered which automatically pull through to TR product

External – Capture billable hours for lawyers. Could be embedded into another wearable, e.g. FitBit, Glass, Watch, or through additional decive, e.g. Ring

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MARKET LANDSCAPE The lack of existing business models for Glass has not prevented direct and indirect competitors of Thomson Reuters from jumping into the market. Case in point is the number of apps which have already been created despite Google’s ban on monetization. Many of these apps are clustered around information sharing. Others give Glass owners the ability to gather and deliver content (that was fed to, or captured by, them) to others. Additionally, augmented reality apps allow a Glass owner to interpret or interact with the world around her. Several companies and startups are looking at wearable technology for law enforcement. For example, in a collaborative effort, Motorola and Roundarch/Isobar have created an integrated Glass and PremierOne Handheld prototype that allows officers to run a vehicle query by viewing a license plate and search suspect information by glancing at a driver's license. Once the license plate image is captured with Glass, the vehicle data is then retrieved and sent to a smartphone or tablet. CopTrax, Image Sensing Systems, and At-Scene are examples of other companies currently exploring mobile and wearable technologies for law enforcement. A number of the information sharing apps already on the market clearly could compete with the intelligent information business of both Westlaw and Eikon. Fidelity has created its Fidelity Market Monitor for Glass. This app provides daily market quotes for four major stock market indices (Dow Jones Industrial Average™, S&P 500®, NASDAQ Composite, Russell 2000®) delivered directly to Google Glass. It is just one of several financial information sharing apps. Also quite prevalent are apps which allow the Glass owner to receive news update via Glass. CNN, the New York Times, the Wall Street Journal, Umano, Zite, Thirst, Glass Feeds, and Winkfeed have all created apps which allow a Glass owner to define the type of content and/or sources he wishes to receive and the frequency with which it is updated. Oftentimes, the apps will even read them aloud, if that is desired.

CONCLUSION

Wearable technologies present Thomson Reuters with many new opportunities both immediate and in the long term. We highly recommend that the company move forward with funding CLEAR on Glass for law enforcement and subsidizing Fitbits for employees. We believe that providing basic WestlawNext functionality on Glass will be very valuable to attorneys in the near future. Lastly, we recommend that the notion of the continuous client be kept in mind and naturally considered as a part of the product design process. When creating new products, it will be crucial for us to ask whether there might be a wearable technology component.

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APPENDIX A: BUSINESS MODEL FLOW DIAGRAMS

Flow diagrams showing business model for the five clusters of wearable technology use cases: Making your identity / preferences portable:

Increasing productivity / health:

Bringing relevant information wherever you are:

(CLEAR on Glass for Law Enforcement) Monetization/Revenue would be primarily through add-on / app purchase to access via Wearable Technology Pay-per-use - Charge premium for just in time/convenience of information Increase market share by reaching professional groups not currently using our products

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Capturing new user-input data:

Capturing new data-points automatically:

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APPENDIX B: CITIZEN JOURNALISM Example Scenarios

Catastrophic Event An individual is walking down the street when they witness a catastrophic event. After ensuring for their own safety, they decide that this event is something that should be quickly recorded and shared. They could choose to remove their phone from their pocket, unlock it, search for the app they wish to share with (Twitter, Facebook, etc.), snap a picture, write a comment, and send the image. Doing this is feasible, but it takes time. Their images, if untagged, are then simply visible to the circle of followers for that individual. If they take the time to tag their post and describe the event, they are potentially endangering themselves while they are distractedly using their phone. Their tagged images may eventually be discovered by other users and media outlets, but this too will take time. Instead the individual chooses to raise their smartwatch and orient it towards the events that are unfolding. They quickly tap the Reuters Reporter app (sample name) which opens to nothing but a camera shutter button (overlaid on a live image from the camera), and then rapidly begin snapping images. Within three to five seconds the user has begun to capture the unfolding event. These images are then tagged with pertinent metadata (such as location, date, time, individual’s name, phone number/email address). The images are sent to their companion smartphone app over Bluetooth, and then immediately transmitted by their smartphone app over cellular or WiFi to Reuters News personnel with no further input required from the individual. The received images are rapidly sorted, culled, edited, and vetted (by means of any other available source) then posted to a rapidly developing news section of Reuters.com along with brief explanatory details. Simultaneously these images are retransmitted to wire service customers and Thomson Reuters’ social media channels. As consumers urgently seek any information from formal sources about the unfolding events, many turn to Reuters News after they discover that we have the most current images. Thomson Reuters’ journalists are then dispatched to the scene to capture higher quality images and details of the story.

Unique Event or Location An individual may see an unusual or interesting event, or simply be in a remote area where journalists don’t often travel. Rather than submit their work to social media sites, they can be incentivized to submit to Reuters by the chance of having their images and story published on Reuters.com. An individual in this situation could choose to disable the “auto submit” option on their smartwatch or other wearable device, take the images, then later (from their smartphone companion app) add additional titles or captions to tell their story before submitting the images to Reuters.

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Benefits to Thomson Reuters Increases chance of being the first to report breaking news events. Real-time imagery of breaking events is difficult to obtain, and thus gives Thomson Reuters a

competitive advantage over other news services. Early and high visibility as very few developers currently target these wearable devices. Helps strengthen our consumer connection that is essential, but currently lacking. Makes additional content available to our site with little additional staff cost.

Benefits to the consumer

Recognition from having their image published by a major media source. Sense of accomplishment by being part of reporting a news story Speed and ease of use promotes safety for the individual as they are able to keep their eyes

focused on the scene and maintain situational awareness.

Potential Target Devices The following devices are either currently available to consumers or are quickly nearing commercial viability. None of these devices are guaranteed to be successful, but this concept can be applied to any wearable device with a camera and wireless transmission capabilities. Samsung Galaxy Gear Recently released to the market, this smartwatch includes a camera that is in a prime orientation to facilitate rapid capturing of events that are directly in front of the user. The device also has touchscreen capability and wireless transmission over Bluetooth to a smartphone. This device is already being targeted by other app developers that seek to benefit from the ability to capture an image in “two seconds, instead of the seven seconds a mobile phone requires” (Evan Spiegel, CEO Snapchat). The device is currently limited by short battery life, high cost, and a very narrow compatibility list of Android devices only. Google Glass This device is not widely available to consumers at this time. It includes a camera that is always facing wherever the user is looking. The camera can easily be triggered by touch or voice commands. The device has wireless transmission capabilities over Bluetooth to Android and iOS devices. The device is currently limited by short battery life, very high cost, very limited availability, and navigation challenges that may limit the speed at which an image can be captured.

Dependencies

Staff will be required to develop applications for both the wearable device, along with the companion smartphone app.

Staff will be required to be available on extremely short notice to process and vet incoming images.

Additional sources of information will be needed to add context and validity to incoming images in the absence of further details from the user.

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Potential App Features Wearable Device App

Very simple UI Configurable setting to open directly to camera in either image mode or video mode. Configurable setting to enable/disable automatic submission of images to Reuters Progress bar or icons identifying when transmission of images to smartphone is complete, and

also when transmission to Thomson Reuters is complete. Section to review and delete captured images. Possible ability to display breaking news alerts that open on smartphone when selected.

Smartphone Companion App Full Reuters News feed and functionality. Display of received images from wearable device app, along with transmission status. Section for adding explanatory detail to submitted images. Notification if images are published along with link to the story. Ability to geotag received images. Section for entering user details that will be added automatically to submitted images (phone

number and email optional, but useful for follow-up questions from editors) Possible inclusion of identical feature set of wearable device app to permit users to submit

images using smartphone only.

Potential Downsides Barrier to entry cost is low, competitors can easily enter the market and duplicate. Idea is not unique and has been done before (CNN, BBC, USA Today) Potential for reporting event with inaccurate details if we attempt to break a story too soon

without vetting the details of the event. Potential to report story too late (to benefit from being first to post images) if too much time is

taken to vet details.

Other Considerations Clear language will need to be included with app terms of service to clearly define our right to

publish submitted images and define who owns images long-term. How do we stop individuals from publishing the same images elsewhere? Do we pay individuals for published photos, or offer some other type of incentive beyond

recognition through photo credits? This may alienate freelance photo journalists that we employ.

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APPENDIX C: RingU

RingU is a self-contained metallic ring which contains LED lights motors which contract the ring to ‘squeeze’ and send a message / notification subtly. Pushing the ring can also send a notification the in the other direction. The ring is tethered via Bluetooth 4.0 to a mobile phone where an App is used to set notification preferences and also to relay the messages. The initial commercial application for RingU is consumer, marketing the product in Japan as a means for fans to receive messages from their favorite pop star. The devices are cheap - $15 at cost price – and so would be a viable technology to use in some of the applications detailed in this white paper where they could effectively be given to customers free to promote adoption. Future version will also include gyro for gesture control. Additional functionality could also be added, for example adding wireless, NFC, visual display etc – particular if form factor was changed into a wristband. The following use cases could be candidates for a partnership with RingU to use the ring.

Making your identity / preferences portable

Bringing you relevant information wherever you are

Capturing new data-points automatically Opportunities for partnership include:

Purely commercial arrangement to buy the ring and integrate it into our products

Collaboration – working with the research team at City University to develop and explore new functionality where significant integration would be needed to create the wearable tech business opportunity for Thomson Reuters