IP Operations at EMC Krish Gupta Vice President & Deputy General Counsel ACPC 2011 Winter Meeting January 25, 2011 © Copyright 2010 EMC Corporation. All rights reserved. 1 About EMC Fortune 500 Rank: 166 Revenues (2010 estimate): $16.9 billion* Employees (end Q3 2010 worldwide): ≈ 47,000 Countries where EMC does business: > 80 R&D Investment (2010): ≈ $2 billion Total Cash and Investments (end Q3 2010): billion $10.5 Quarterly Free Cash Flow (YTD 2010): $2.2 billion Market Value (Jan. 14, 2010): > $49 billion Founded: 1979 *Based on EMC’s expectations stated in Oct. 19, 2010 earnings release © Copyright 2010 EMC Corporation. All rights reserved. 2 EMC’s Long-Term Financial Results Revenue $18.0 Non-GAAP EPS $1.4 6-yr CAGR (2004-2010e*) $16.0 Revenue Non-GAAP EPS¹ 13% 20% $1.2 $14.0 $1.0 $12.0 $10.0 $0.8 $8.0 $0.6 $6.0 $0.4 $4.0 $0.2 $2.0 $0 $0.0 2004 2005 2006 2007 2008 2009 2010e* ¹ Refer to the schedules available at http://www.emc.com/about/investor-relations/archived-events.htm for a complete reconciliation of GAAP to non-GAAP results * 2010 estimates assumes FY’10 Revenue of $16.9B and FY’10 Non-GAAP EPS of $1.25. © Copyright 2010 EMC Corporation. All rights reserved. 3 EMC’s Businesses Information Infrastructure Products Information Infrastructure & Cloud Services VMware* Symmetrix Technology Solutions and Services Virtualization Solutions from the desktop to the data center and to the cloud Unified Storage Backup Recovery Systems Data Computing Products Customer Support Services Cloud Services EMC Consulting Information Intelligence Group RSA Security *VMware, a public company, is majority owned by EMC © Copyright 2010 EMC Corporation. All rights reserved. 4 EMC’s Mission © Copyright 2010 EMC Corporation. All rights reserved. 5 The Cloud is . . . Built DIFFERENTLY: Dynamic pools of virtualized resources Operated DIFFERENTLY: End-to-end service delivery Consumed DIFFERENTLY: Convenient for IT and for those they support Private Cloud is one that IT controls © Copyright 2010 EMC Corporation. All rights reserved. 6 Sustained Investment in Innovation Through R&D and Acquisitions Over the Past 5 $17B 2010≈ $2B Years, EMC has invested MORE THAN in R&D and acquiring innovative companies In © Copyright 2010 EMC Corporation. All rights reserved. EMC invested in R&D alone 7 Sustained Investment in Innovation Since 2003 ≈ $11 Billion Invested in ≈ 50 Strategic Acquisitions 2003 Services 2005 2006 2007 2008 Dolphin Internosis Interlink Geniant Business Edge Conchango Authentica RSA Network Intelligence Valyd Verid Tablus Acartus Captiva Pro Activity X-Hive Dokumentum Document Sciences Kazeon Smarts nLayers Voyence Infra Configuresoft FastScale Rainfinity Acxiom Akimbi YottaYotta Springsource WysDM Iomega Data Domain Information Security Content Management Documentum Resource Management Astrum Virtualization/ Mobility Data Protection/ Archiving Ask Once VMware Legato 2009 2004 Dantz Allocity Cloud Computing Data Warehousing © Copyright 2010 EMC Corporation. All rights reserved. Kashya Avamar Indigo Stone Mozy 2010 Archer Pi Source Labs Isilon Greenplum 8 EMC’s Expanding Presence Around the World Burlington, Ontario Rotterdam, Netherlands Cork, Ireland St. Petersburg, Russia Roy, UT Irvine, CA Seoul, S. Korea Brentford, UK Pau, France Pleasanton, CA Beijing, China Vienna, Austria Apex, NC Duluth, GA Hopkinton, MA Shanghai, China Tel Aviv, Israel Tokyo, Japan Global Headquarters Palo Alto, CA Santa Clara, CA Cairo, Egypt Bedford, MA Franklin, MA Bangalore, India Cambridge, MA Singapore EMC’s Direct Global Presence Campinas, Brazil R&D Centers Centers of Excellence Customer Support Centers Executive Briefing Centers Manufacturing Centers Global Solution & Engineering Centers © Copyright 2010 EMC Corporation. All rights reserved. Melbourne, Australia 9 EMC Legal Department Structure General Counsel International Law Group © Copyright 2010 EMC Corporation. All rights reserved. Corporate/SEC/ Employment/M&A Intellectual Property/ Technology Licensing 10 IP and Technology Licensing Law Group Responsibilities: • • • • • • • • • • • Patent preparation and prosecution IP Litigation Trademarks and Branding Copyrights, DMCA Transaction support for business units and CTO Office Strategic OEM relationships/out-bound licensing Inbound licensing for resell or embedded technology Open Source Strategy and Review Standards Export & Trade M&A Diligence and Support © Copyright 2010 EMC Corporation. All rights reserved. 11 IP and Technology Licensing Law Group (Cont.) Staffing: • Total headcount: 24 – 14 attorneys 12 patent attorneys 2 licensing attorneys 7 senior attorneys 7 junior attorneys – 8 paralegals – 2 TBH • • • • • 3 in Santa Clara, CA 1 in San Diego, CA 18 in Hopkinton, MA TBH – 1 in Seattle, 1 in Europe Attorneys are assigned to business units / product groups • Senior attorneys are also subject matter experts © Copyright 2010 EMC Corporation. All rights reserved. 12 IP and Technology Licensing Law Group (Cont.) Patent Statistics: • 2700 issued US patents; 350 foreign patents • 2000 pending applications • 10% of pending applications are in foreign countries • 30% of foreign applications are in India and China Patent Process: • Patent Committees are established in conjunction with CTO and President of Product Group • Work with the CTO Office to identify “themes” for disclosure review • The “themes” are aligned with strategic research and investment objectives • BU pays for patent awards; Legal pays for patent procurement • Report back to BUs on theme alignment © Copyright 2010 EMC Corporation. All rights reserved. 13 IP and Technology Licensing Law Group (Cont.) Key Initiatives • Increase in-house prep and pros capabilities – – – – In-house training program 5 full time prep and pros attorneys Target is 50% of new apps filed in-house Continue to feed through college internships • Increased use of technology for added efficiencies – Web-based training – Extensive use of intranet to communicate policies and procedures – Paperless patent and tm files – Automated invention disclosure process – Automated docketing process © Copyright 2010 EMC Corporation. All rights reserved. 14 IP and Technology Law Group (Cont.) • Update/upgrade skill sets and form agreements to support new businesses – Attorney training for new legal issues to support new businesses – Revised and new form agreements for new offerings • Aggressively defend NPE Litigation – Handle analysis and diligence for IP litigation and adverse claims in-house – 7 patent suits currently pending – All NPE litigation – 11 patent suits dismissed without any payment from EMC • Global reach – Centers of Excellence in India, China, Russia, Egypt, Isreal and Ireland © Copyright 2010 EMC Corporation. All rights reserved. 15 THANK YOU © Copyright 2010 EMC Corporation. All rights reserved. 16