Ann: June 2018 Quarter Update, page-220

Hi kong,

IP includes patents for inventions, designs for the appearance of an article, IC design, copyright (which includes software) confidential information/know how, as well as trade marks. The trite saying is that IP can be both sword and a shield. Among other things, it can be used to attack competitors who infringe, and can be used in horsetrading (cross-licensing) when we need someone else's IP.

Our earliest patent is US8250011 from 2008, so it has about 10 or 11 years to run.

IBM, HP, Qualcomm, Samsumg all have pending AI patent applications/granted patents which refer to our patent.

If any of these infringe our patent, we may be better off granting them a licence rather than taking court action to stop the infringement because the cards are stacked against the little guy in court.

Our ongoing R&D has produced a number of further patent applications which may or not mature to granted patents depending on the examination process in the Patent Office. PvdM is also preparing further patent applications as we speak.

I think that, in the case of phones, we will license the phone companies to adapt our Akida IP (inventions, copyright, IC design, confidential information) for integration into their circuitry.

Akida in FPGA has an adaptable circuit configuration which can be customized for different applications.

For customers other than phone companies, we intend to sell Akida chips and the Akida Training Environment to enable the customers to select the best Akida configuration for their needs, eg, still photos, video, etc.