Value Articulation A Framework for the Strategic Management

- Value Articulation – A Framework for the Strategic Management of Intellectual Property Value Articulation at Dolby Laboratories - a Time-Sequenced Embodiment - June 22, 2013 James G. Conley Kellogg School of Management, Northwestern University, USA j-conleya@kellogg. northwestern. edu Peter M. Bican WHU – Otto Beisheim School of Management, Germany peter. bican@whu. edu Holger Ernst WHU – Otto Beisheim School of Management, Germany holger. ernst@whu. edu

Dolby Laboratories 400 1968: Dolby B Type for Consumer Market: exclusive License to KLH Global Patent Appl. as to Priority Date Patent Appl. Value Transportation 300 1966: Dolby A-Type Noise Reduction for Professional Studio Recording 1977: Star Wars breakthrough: Dolby Stereo for Prof. Film Sound Market 1970 Dolby move into Film Sound Market 1970: & DOLBY: 016 Paper goods and printed matter 200 1966: && DOLBY System: 009 Electrical + scient. apparatus 100 1968: 1 st B-Type Patent US 3631365 1965: A-Type Patent 1973: 2 nd B-Type Patent US 3846719 0 1965 1970 1975 1980: 1 st C-Type Patent US 4490691 1980 1985 1990 1995 2000 2005 2010

Dolby Laboratories 400 1968: Dolby B Type for Consumer Market: exclusive License to KLH 1995: Dolby Digital: Move to Consumer “Home” Market 1982: Dolby Surround. Stereo for Consumer Market Global Patent Appl. as to Priority Date Value Translation 300 1966: Dolby A-Type Noise Reduction for Professional Studio Recording 2007: Dolby 3 D Digital Cinema Prof. Film Sound 1997: Dolby Digital mandatory for DVD Prof. Recording 1999: 009 Electrical& scient. apparatus 1985: DOLBY SURROUND: 009 Electrical + scient. apparatus 1968: B-Type Patent US 3631365 800 600 2003: Acquisition of Lake Tech. Ltd: developer of Dolby Headphone technology 1966: && DOLBY System: 009 Electrical + scient. apparatus 1 st 1 000 Patent Appl. 1992: Move to Digital: Batman Returns: 1 st movie with Dolby SR-D (now: Dolby Digital) Prof. Film Sound 1977: Star Wars breakthrough: Dolby Stereo for Prof. Film Sound Market 1970 Dolby move into Film Sound Market D V D 1970: & DOLBY: 016 Paper goods and printed matter 200 100 Value Transportation Total Revenue in ‘ 000 USD 2000: Dolby Headphones for Consumer Market 1992: 009 Electrical + scient. apparatus 1978: 009 Electrical + scient. apparatus 1965: A-Type Patent 2009: 400 009 Computer software platform 038 Providing online telecommunications services, 041 Entertainment services …for interactive online gaming 200 1995: 009 Electrical + scient. apparatus 1973: 2 nd B-Type Patent US 3846719 0 1965 1970 1975 Nr. of Patents featuring “Digital” 1980: 1 st C-Type Patent US 4490691 1980 1985 1990 1995 2000 0 2005 2010

Dolby Laboratories 400 1968: Dolby B Type for Consumer Market: exclusive License to KLH 1995: Dolby Digital: Move to Consumer “Home” Market 1982: Dolby Surround. Stereo for Consumer Market Global Patent Appl. as to Priority Date Value Translation 300 1966: Dolby A-Type Noise Reduction for Professional Studio Recording Patent Appl. 1992: Move to Digital: Batman Returns: 1 st movie with Dolby SR-D (now: Dolby Digital) Prof. Film Sound 1977: Star Wars breakthrough: Dolby Stereo for Prof. Film Sound Market 1970 Dolby move into Film Sound Market D V D Total Revenue in ‘ 000 USD 955 505 1999: 009 Electrical& scient. apparatus 1985: DOLBY SURROUND: 009 Electrical + scient. apparatus 1966: && DOLBY System: 009 Electrical + scient. apparatus 1968: 1 st B-Type Patent US 3631365 922 713 719 503 1992: 009 Electrical + scient. apparatus 1978: 009 Electrical + scient. apparatus 482 028 1965: A-Type Patent 391 542 1995: 009 Electrical + scient. apparatus 1973: 2 nd B-Type Patent US 3846719 0 2007: Dolby 3 D Digital Cinema Prof. Film Sound 1997: Dolby Digital mandatory for DVD Prof. Recording 1970: & DOLBY: 016 Paper goods and printed matter 200 100 Value Transportation Total Revenue in ‘ 000 USD 2000: Dolby Headphones for Consumer Market 1965 1970 1975 161 868 Nr. of Patents 120 000 featuring 40 000 100 000 “Digital” 1980: 1 st C-Type Patent US 4490691 1980 1985 289 041 1990 1995 2000 2005 Explicit Licensing Revenue: 2002 till 2011 2010