Consider Acquisition of Patent Rights Explore A Mutually Beneficial Business Opportunity 1

 We are the originators of modern streaming  We possess some very valuable IP  We understand patents and rights enforcement  We have one patent application just allowed and others pending for fingerprinting technologies  A deal with Surfer will give the opportunity to gain a proprietary position and shut out competitors 2

3 SurferNETWORK connects directly to radio stations at the studio Half of Shazam or SoundHound users are listening to broadcast radio

We Provide the Fingerprinter With a Direct Connection to Radio Stations 4

5  Increased Efficiency  More Rapid & Accurate Song Recognition  Lower Costs  Potential New Business Opportunity  IP Protection from Competitors  More Accurate Artist & Title Presentation to Listeners  Better Strategic Position in Our Industry  Potential New Business Opportunity  IP Protection from Competitors

Radio Station one copy of audio stream plus metadata Distribution Server audio Audience 6 encoding computer metadata GREEN: We own or control broadcast automation system audio plus rich media content (lyrics, photos, album info…)

 Artist & Title  Start time (implicit or explicit)  Duration  (and most stations also include info on Commercials) 7

 Much of Artist & Title is Inaccurate  (which we manually repair)  No Artist & Title for Most Syndicated Content (min. of 125 syndicators in the U.S.)  Can’t present rich media content  (Caused us to initiate R&D program on fingerprinting)  And, many radio stations can’t transmit RDS because their song metadata is garbage 8

9 (and this many more)

 Objective 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 – shouldn’t that be easy?  But Fingerprinter doesn’t know what any radio station is currently playing  Must use elaborate procedure to deduce the identity of the broadcaster on most recognition requests  See  US Patent Application 2011/ 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) 10

Radio Station one copy of audio stream plus metadata Distribution Server audio Audience 11 encoding computer metadata GREEN: We own or control broadcast automation system audio plus rich media content (lyrics, photos, album info…) metadata and/or audio for every audio event metadata and/or audio for every audio event station provides ID corrected A&T returned Fingerprinter

 Avg. 25 music stations in each of top Metro/DMA listening areas  Each station playlist has about 250 unique songs  Playlist changes slowly  Station plays the 250 songs 7500 times/mo. 12

 Station identifies itself, so you know listening area  You compile a playlist for each station  You 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 time  You know the station’s version of A&T  You know the duration  Lookup the station’s A&T in the playlist 13

 User requests song recognition  You know listening area of user  You know the 25 stations in that listening area  You know the 25 songs being played by those stations  You know the start time of each song and the time expired since the start  You know how many seconds into each song to compare the fingerprint 14

15 song 1 song 2 song 3 current time compare fingerprint here Showing Start of Each Song

For half of all song recognition requests you only need to analyze a few milliseconds of audio for an average of 12.5 songs 16 Computational Resources Accuracy Efficiency

Radio Station one copy of audio stream plus metadata Distribution Server audio Audience 17 encoding computer metadata GREEN: We own or control broadcast automation system audio plus rich media content (lyrics, photos, album info…) continuous audio or fingerprint during syndication continuous audio or fingerprint during syndication station provides ID corrected A&T returned ( for syndication) Fingerprinter

 We have a Customer Control Panel  Stations input their syndication schedule  We could provide that to Fingerprinter  You will know when to use each technique  During syndication you need to fingerprint & analyze each song, just as for a user  But, you will compile a syndication playlist for each syndicator  So, your identification of songs being played will be quick, just compare against the playlist 18

Song ID software 19 We provide the Song ID software to our existing customers as part of our service And to other radio stations around the world for a fee

audio segment sent to server return Artist & Title They get brand recognition Shazam example 20 and Station ID “You are listening to WXYZ FM”

Low Cost Auditing Service for Radio Stations and Advertisers 21

 Media Monitors, LLC., ASCAP, BMI operate acoustic fingerprinting services to monitor and audit radio stations to count song and advertising plays  ASCAP & BMI represent copyright holders  BMI already has a deal with Shazam for acoustic fingerprinting  Nielsen provides services that include obtaining Artist & Title to present on a radio station’s website or media player  They make money by selling songs 22

 Ex. Media Monitors, LLC  Monitors 2500 stations  has physical plant in 200 listening areas  Each facility has radio receivers and computers, one dedicated radio receiver per station  Sends acoustic fingerprint to datacenter for analysis 23

Radio Station Song ID software metadata or acoustic snippet Internet fingerprint DB server audio Reports Web pages Media players No Capital Equipment Just a piece of software No Capital Equipment Just a piece of software 24

25

 Brand Recognition for Listeners using Fingerprinting App  Accurate Artist & Title  Even for Syndicated Music  Can Utilize RDS/HD to Present Artist & Title on Dashboard 26

27 SoundHound Spotify does deal with SoundHound, Purchases The Echo Nest Google enters Music Recognition

1. Lower Costs  Simplified Processing – right now must use elaborate procedure to deduce the identity of the broadcaster on most recognition requests 2. New Business Opportunities 3. Lock in a Protected Market Position with Patent Protected IP 28 Why let a competitor?

 This 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&T  Group E: An Improved Method for an Acoustic Fingerprinting Service Provider to Deliver Advertising Having Special Promotions 29