LES

WHY STANDARDS?

Standards Membership

Today, in North America and around the world,

innovation is the principle source of differentiated and defensible advantage for operating companies. Innovation is the basis of advantaged products and services, and it drives sales and profits. It is the source of jobs. It is the engine of the economy. Yet the intricacies of the innovation economy are not well-understood by our political, financial, and business leaders.

For example, while intellectual property (IP)

value makes up approximately 70 percent of the equity value of our publicly traded companies, the Generally Accepted Accounting Principles (GAAP)— the standards by which the U.S. Securities and Exchange Commission manages reporting by publicly traded companies — treat the accounting for intangible value almost as an incidental issue.

IP and its value are nearly invisible to most

of our business, financial, and political leaders. They have little if any instruction in it. There is little accounting for it. And very often, no one has business responsibility for its protection and management, outside of the attorneys.

If you or your company owns intellectual property, transfers it to suppliers or business

partners, buys or sells or helps others buy or sell intellectual property, it is in your best interest to join the LES Standards Initiative and help put the mechanics in place that will create a level playing field for fair marketplace competition. It is in your best interest to work with your colleagues to set well-informed, and rational, fair, ethical, and consistent standards around IP management. The adoption of standards will minimize the creation of confusing and contradictory legal and regulatory mandates.

The LES Standards Initiative provides an opportunity to have a real and very significant impact on the future of

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the IP economy here and around the world. You can make a difference. And if you have a stake in the IP industry, this is your opportunity to make sure that your interests are represented as the new industry standards in IP are created.

The Purposes of LES Standards Initiative

Areas of Standards Development

 Raise the standards of business conduct in IP-oriented transactions

Five standards sub-committees have been established, creating working groups, to draft standards in the following areas:

 Improve the practice of IP management and, by doing so, enhance shareholder value, establish safeharbors and mitigate litigation risks

 Patent Licensing  IP Brokerage

 Reduce the cost and time required to do IP-oriented transactions and IP management

 IP Protection in Supply Chain

 Protect and preserve the value of IP for innovative individuals and enterprises

 IP in the Boardroom

 Encourage investment in innovation and enhance the economic wellbeing of society

 IP Valuation

Be PART of the PROCESS of CREATING these CRITICAL STANDARDS There are two ways that you can get involved:?

1 Enterprise Membership: Enterprise Membership allows multiple participants from your organization (e.g. company, government agency, university) to participate on the LES standards development committees and create the draft standards. $500 per organization* annually

(separate from individual LES membership).

JOIN TODAY www.lesusacanada.org/LESStandards Call: 703.234.4058 For more information email: standards@les.org

2 Consensus Standards

Partnership Membership:

The LES Consensus Standards Partnership (CSP) serves as the final consensus voting body for approval or disapproval of any LES standard. Membership at this level affords a single member of your organization the opportunity to vote on the standards, but not to participate on the standards development committees. $250 per organization annually (separate from individual LES membership). (Enterprise Membership automatically enrolls your organization as a Consensus Standards Partnership Member, at no additional charge.)

More information can be found at www.lesusacanada.org/LESStandards * Several individuals from your organization may participate in the standards initiative on a variety of committees.