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Purpose of this Presentation

Consider Acquisition of Patent RightsExplore A Mutually Beneficial Business

Opportunity

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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

Surfer is Sophisticated in IP

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How Does SurferNETWORK’s Business and the Acoustic Fingerprinting Business

Relate?

SurferNETWORK connects directly to radio stations

at the studio

Half of Shazam or SoundHound

users are listening to

broadcast radio

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QUICK ANSWER

We Provide the Fingerprinter With a Direct Connection to Radio Stations

How Does SurferNETWORK’s Technology Improve the Acoustic Fingerprinting

Business?

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What’s In It For The Fingerprinter

What’s In It For Us

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

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How the Streaming Business Works

Radio Stationone copy of audio stream

plus metadata

DistributionServer

audio

Audience

encodingcomputer

metadata

GREEN: We own

or control

broadcast automation system

audio plusrich media content

(lyrics, photos, album info…)

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

Commercials)

Metadata Includes:

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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

Our Issues:

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Example of Bad A&T Metadata

(and this many more)

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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 2011/0099197 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)

Fingerprinter Issue to Solve

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What We Could Do For Fingerprinter(non-syndication)

Radio Stationone copy of audio stream

plus metadata

DistributionServer

audio

Audience

encodingcomputer

metadata

GREEN: We own

or control

broadcast automation system

audio plusrich media content

(lyrics, photos, album info…)

metadata and/or audiofor everyaudio event

station providesID

correctedA&T returned

Fingerprinter

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Avg. 25 music stations in each of top 100-200 Metro/DMA listening areas

Each station playlist has about 250 unique songs

Playlist changes slowly Station plays the 250 songs 7500 times/mo.

1. Radio Station Operation & How It Would Work for

Fingerprinter

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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 timeYou know the station’s version of A&TYou know the duration

Lookup the station’s A&T in the playlist

2. Radio Station Operation & How It Would Work for

Fingerprinter

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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

3. Radio Station Operation & How It Would Work for

Fingerprinter

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4. Only Need To Compare A Small Part of Each Song

song 1

song 2

song 3

current time

compare fingerprint here

Showing Start of Each Song

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SignificanceFor half of all song recognition requests

you only need to analyze a few milliseconds of audio for an average of

12.5 songsComputational

Resources

Accuracy Efficiency

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What We Could Do For Fingerprinter

Radio Stationone copy of audio stream

plus metadata

DistributionServer

audio

Audience

encodingcomputer

metadata

GREEN: We own

or control

broadcast automation system

audio plusrich media content

(lyrics, photos, album info…)

continuous audio or fingerprint duringsyndication

station providesID

correctedA&T returned

( for syndication)

Fingerprinter

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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

How It Would Work for Syndication

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Surfer’s Business Opportunity

Song IDsoftware

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

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What’s In It for the Radio Station?

audio segment sent to server

return Artist & Title

• They get brand recognition

Shazam example

and Station ID

“You are listening to

WXYZ 101.5 FM”

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Possible New Business Opportunity

Low Cost Auditing Service for Radio Stations and Advertisers

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Media Monitors, LLC., ASCAP, BMI operate acoustic fingerprinting services to monitor and audit radio stations to count song and advertising playsASCAP & BMI represent copyright holdersBMI 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 playerThey make money by selling songs

Current Operation

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Ex. Media Monitors, LLC Monitors 2500 stationshas physical plant in 200 listening areasEach facility has radio receivers and computers,

one dedicated radio receiver per stationSends acoustic fingerprint to datacenter for

analysis

Costly to Operate

Be the Data Provider for These Organizations

Radio Station

Song IDsoftware metadata or acoustic

snippet

Internet

fingerprintDB

server

audioReports

Web pagesMedia players

No Capital Equipment Just a piece of software

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SUMMARY

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Brand Recognition for Listeners using Fingerprinting App

Accurate Artist & Title Even for Syndicated Music Can Utilize RDS/HD to Present Artist & Title

on Dashboard

Benefits to Radio Stations

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Fingerprinting is a Turbulent Market

SoundHound

Spotify does deal with SoundHound, Purchases The Echo Nest

Googleenters Music Recognition

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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 Opportunities3. Lock in a Protected Market Position with

Patent Protected IP

Benefits to Fingerprinter

Why let a competitor?

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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

END NOTE