Audible Magic Corporation 985 University Avenue #35 Los Gatos, CA USA x145 Tools to Help Universities Automate and Implement Their Copyright Policies

Company Confidential Audible Magic Solution Assumptions Peer-to-peer file sharing is being used by students on many university networks for the downloading of copyrighted content There are legitimate uses of peer-to-peer file sharing applications Copyright policies and enforcement processes vary between universities Technology is only one component of the solution to address the problem of piracy on university campuses Education of proper copyright behavior for students/users is important to universities

Company Confidential Alternative For Campuses Standard Approach University receives litigation letters and DMCA notices. Highly manual reactive effort of enforcement. Campus bears the cost of administration. Repeat offenders are disconnected from the network impacting their learning Broad brush educational programs Parental complaints Negative PR Standard Approach University receives litigation letters and DMCA notices. Highly manual reactive effort of enforcement. Campus bears the cost of administration. Repeat offenders are disconnected from the network impacting their learning Broad brush educational programs Parental complaints Negative PR Audible Magic Approach Tools that can be customized for each universities policies and program A automated system of education and administration Immediate education targeted to behavioral offenders Leverage “teachable moment” Focused and graduated escalation of communication and sanctions Promote legitimate P2P usage, discourage illegal P2P usage Audible Magic Approach Tools that can be customized for each universities policies and program A automated system of education and administration Immediate education targeted to behavioral offenders Leverage “teachable moment” Focused and graduated escalation of communication and sanctions Promote legitimate P2P usage, discourage illegal P2P usage

Company Confidential Inside the CopySense Appliance Internet Assembles the Digital File Identifies Digital File by Matching to Registry Applies Business Rule From Registry Collects Copy of Network Traffic Tracks Violations and Applies Sanctions Turnkey product - no software to install Non-inline device – no impact on network performance or reliability Easy installation Automatic updates

Company Confidential CopySense Appliance Provides Copyright Filtering CSA solution can automatically filter the transfers of unauthorized or illegal content – music, movies, software, child pornography Automated Technical Enforcement

Company Confidential Treat Copyright Material in a Manner Similar to Computer Virus Frank Sinatra “Mack The Knife” Daily Show MTV Networks Vance’s Garage Band Vance’s Garage Band Detection Database Ensure academic freedom and privacy by focusing on illegal transfers instead of on users.

Company Confidential CopySense Appliance Provides an Educational and Administration Tool CSA solution can automatically filter the transfers of unauthorized or illegal content – music, movies, software, textbooks, child pornography Automated Technical Enforcement Graduated Education/ Sanctions Maintains association of infringing behavior and users Tracks cumulative violation points Sanctions for repeat or serious offenders Change behavior through feedback and communications

Company Confidential Point System For Violations

Company Confidential Communication and Sanctions Real-time to User Activity “Leveraging the teachable moment”

Company Confidential Repeat Offenders Trigger More Serious User Communication and Sanctions “Automating policy enforcement”

Company Confidential Directing Users to Legitimate Content Services Notice: You have attempted to download copyrighted material. It is against Acme Internet’s network use policy to download or distribute copyright protected material and a violation of copyright law. If you feel this warning is in error, please contact the network services help desk. You Wanted? Every Breath You Take by The Police Why not get the real thing instead? Download free here

Company Confidential Audible Magic’s Solution Automated educational solution for addressing copyright issues related to peer-to-peer file sharing Reducing the administrative cost related to policy enforcement Tools to educate and influence student’s behavior through a series of graduated communications and automated sanctions Take advantage of the ‘teachable moment” Supports legitimate uses of peer-to-peer file sharing systems. Copyright identification using Audible Magic’s industry standard technology allows academic access to peer-to-peer Configurable to ensure compliance with campus privacy policies Installed in over 70 universities