Flash Drive with a Display by Thought Waves Inc.

1
Arjun Yetukuri, Ph.D.
Founder
2
Intro
Thought Waves Inc.

• Focus Intellectual Property Development
• Patent Portfolio Consumer Products
• Business Model
• Recognize the Need
• Innovate and Patent
• License or Sell IP
• Founder Arjun Yetukuri, Ph.D.
• Strength Recognize the Need and Innovate
• Multiple Patents Pending
• 15 yrs of Diverse Research and Product
  Development Experience

3
What?
Removable Storage Device with a Display

• Invention A Removable Storage Device with a
  Display
• US Patent 7,451,262
• Includes Flash Drive Devices
• Includes Touch Screen Display
• Includes External/Removable Memory Storage
  Devices

4
What?
Removable Storage Device

• Features of the Invention
• Display to view contents without connecting to a
  computer
• Can also be a touch screen display
• Basic functions include store, delete, cut,
  copy, paste
• Chargeable power source when attached to PC

5
What?
Removable Storage Device

• Features of the Invention
• Multiple interface options
• Touch screen, digitizer, thumb wheel, joystick
• Multiple connections possible, USB or wireless
• Display on the exterior and/or interior of
  protective cover
• Use 2 displays as one continuous display for
  larger capacity units

6
How?
How Does a Licensor Benefit?

• Typical Prices of Flash Drives

      Special Features Special Features Special Features
Size Regular Brand Name Brand w/ 256-bit AES Hardware Encryption w/ 256-bit AES Hardware Encryption and an Enforced Complex Password Password Protection and Device Lockdown after a Specified Number of Invalid Attempts
2GB 8 10 75 85 105
4GB 10 14 120 130 155
8 GB 15 40 210 220 265
16 GB 27 44 350 375  
32 GB 60 80 609 630  
64 GB 160        
Source http//www.supermediastore.com/usb-flash-drive-usb-pen-drive.html Source http//www.supermediastore.com/usb-flash-drive-usb-pen-drive.html Source http//www.supermediastore.com/usb-flash-drive-usb-pen-drive.html Source http//www.supermediastore.com/usb-flash-drive-usb-pen-drive.html Source http//www.supermediastore.com/usb-flash-drive-usb-pen-drive.html 3/22/2009
Added Functionality Demands Higher Prices
7
How?
How Does a Licensor Benefit?

• Licensing Fee For Flash Drive Sales
• Based on Brand Name Pricing
• Based on Special Feature Premium Pricing Factor
  (PPF)
• Assumptions
• 1 Licensing Fee is 3 of Retail Price
• 2 Yearly Sales 2008 Market (12.1 M Units)
• 3 20 Market Penetration for Flash Drive w/
  Display
• 4 10 Yearly Reduction in PPF

Source Semico Research Corporation Study
NV105-04
8
How?
How Does a Licensor Benefit?

• Potential Revenue for the Licensor
• For 1 Yr
• For 5 Yrs

Yearly Revenue 17,409,576
If Feature Demand Exists for 5yrs Even If
Premium Pricing Factor Reduces by 10 Per Yr 5 Yr
Revenue 69,638,305
Details ?
9
How?
How Does a Licensor Benefit?

• Potential Revenue for the Licensor - Details

0.212,100,000
2,420,0006.3838
580,319,2060.03
10
Why?
Relevance of the Invention

• Increased Memory Capacities of Flash Drives
• Increased number of files being stored
• Increased number of file types being stored
• Increased consumer need for more control of their
  data
• Increased difficulty in file management

11
Why?
Relevance of the Invention

• Flash drives are the 3 selling item
• In the U.S. and European promotional products
  market
• Combined retail and promotional logo flash drive
  sales
• Expected to reach 10 Billion USD in 2009
• Flash drive memory cost jumped 87 in early
  January 2009

Source PRLog.org (Press Release) Jan 19, 2009
12
Why?
Relevance of the Invention

• Ever Growing Flash Drive Market
• Consumer acceptance rate of this technology is
  high
• USB flash drive users own more than one device
• Increasing variety of flash drives
• Increasing difficulty in differentiating flash
  drives
• Not enough value features to differentiate flash
  drives

13
Why?
Relevance of the Invention

• Some manufacturers using the form factor to
  differentiate

• Some manufacturers using the function factor to
  differentiate

14
Why?
Relevance of the Invention

• Consumer Benefits
• Interactivity Ability to view manage files
  anytime, anywhere
• Without being connected to a PC
• Flexibility Convenience of receiving and sending
  data files
• Without being connected to a PC

15
Why?
Relevance of the Invention

• Manufacturer Benefits
• Differentiation Display is a functional unique
  product differentiator
• Price Advantage Added functionality of the
  invention
• Can justify a price premium
• Can generate higher profits

16
Conclusions
Next?

• Flash drive market is growing at an enormous rate
• Capacity/drive is growing, making file management
  difficult
• Consumers want more control of their data
• IP covers removable memory devices
• Potential additional revenue source for a
  Licensor
• Licensing to manufacturers of removable hard
  drives

17
Conclusions
Next?

• Differentiating flash drives is difficult
• Added value features are limited
• Our IP addresses a gap in the USB flash drive
  market segment
• Potential revenue for a Licensor in 1 Yr
  17,409,576
• Potential revenue for a Licensor in 5 Yrs
  69,638,305

18
Next Step
Next?

• If Interested in this IP, with serious inquiries
  contact Thought Waves Inc.
• ipstaff_at_thougthwavesinc.com