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<div class=Section1>
<p class=MsoNormal style='margin-bottom:11.0pt'>During the recent IIW
conference, the OIDF Board met to discuss the IPR Policy and Process document.
The Board very much appreciates all of the efforts by the IPR group to date,
and the Board generally approves of all aspects of the IPR Policy and Process,
as proposed by the IPR group, with one exception. The Board feels, after much
deliberation, that the draft IPR Policy and Process concentrates too much
control and power into the hands of the Board and the Specifications Council.
As such, the Board has agreed that the documents should be revised to devolve
substantial power and control to the OIDF membership. Although the Board would
philosophically prefer more of a "direct democracy" model for all
issues, and although the rationale for this is quite laudable, we are proposing
a compromise approach that devolves substantial power to the OIDF membership
while still retaining sufficient structure and control to keep the org both
functional and attractive to commercial Contributors and Implementers. Please
comment on the high-level summary of our proposal below. If this is acceptable
to all concerned in the IPR group and on the Board, we will implement the
changes in revisions to the drafts.<o:p></o:p></p>
<p class=MsoNormal style='margin-bottom:11.0pt'><b><u>Board Proposal<o:p></o:p></u></b></p>
<p class=MsoListParagraph style='margin-bottom:11.0pt;text-indent:-.25in;
mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-family:Symbol'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]>Specifications Council becomes purely advisory<o:p></o:p></p>
<p class=MsoListParagraph style='margin-bottom:11.0pt;text-indent:-.25in;
mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-family:Symbol'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]>Eliminate all quorums for voting (other than for
changing the IPR Policy and Processes)<o:p></o:p></p>
<p class=MsoListParagraph style='margin-bottom:11.0pt;text-indent:-.25in;
mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-family:Symbol'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]>20% quorum for voting to change the IPR Policy
and Processes<o:p></o:p></p>
<p class=MsoListParagraph style='margin-bottom:11.0pt;text-indent:-.25in;
mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-family:Symbol'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]>All votes are by the simple majority will of the
OIDF membership (other than to change the IPR Policy and Processes)<o:p></o:p></p>
<p class=MsoListParagraph style='margin-bottom:11.0pt;text-indent:-.25in;
mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-family:Symbol'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]>Supermajority vote to change the IPR Policy and
Processes (together with a majority Board vote)<o:p></o:p></p>
<p class=MsoNormal style='margin-bottom:11.0pt'><b><u>Counter Proposal<o:p></o:p></u></b></p>
<p class=MsoListParagraph style='margin-bottom:11.0pt;text-indent:-.25in;
mso-list:l1 level1 lfo2'><![if !supportLists]><span style='font-family:Symbol'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><b>Specifications Council becomes purely
advisory<o:p></o:p></b></p>
<p class=MsoListParagraph style='margin-bottom:11.0pt;text-indent:-.25in;
mso-list:l1 level1 lfo2'><![if !supportLists]><span style='font-family:Symbol'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><b>Non-Core Decisions <o:p></o:p></b></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>No
quorum requirement<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Simple
majority vote is the decision of the WG<o:p></o:p></p>
<p class=MsoListParagraph style='margin-bottom:11.0pt;text-indent:-.25in;
mso-list:l1 level1 lfo2'><![if !supportLists]><span style='font-family:Symbol'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><b>Core Decisions (other than modification of
the IPR Policy or Process)<o:p></o:p></b></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Notice
period of 14 days<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Multiple
electronic notice required (if the Contributor has provided multiple contact
addresses), including to a "legal contact," if provided<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Voting
period of 7 days after the end of the notice period<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Quorum
requirement of the greater of 20% of OIDF membership or 20 OIDF members, with
Quorum Bypass Option (see below)<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Proxies
allowed. Contributor may designate a proxy from the Contributor's
registered OpenID specifying the designated proxy's OpenID<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Simple
majority vote, with quorum or quorum bypass, is the decision of the WG<o:p></o:p></p>
<p class=MsoListParagraph style='margin-bottom:11.0pt;text-indent:-.25in;
mso-list:l1 level1 lfo2'><![if !supportLists]><span style='font-family:Symbol'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><b>Modification of the IPR Policy or Process<o:p></o:p></b></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Notice
period of 21 days<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Multiple
electronic notice required (if the Contributor has provided multiple contact
addresses), including to a "legal contact," if provided, and
prominent posting (at least 21 days in advance of the beginning of the voting
period) on OIDF homepage<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Voting
period of 7 days after the end of the notice period<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Proxies
allowed. Contributor may designate a proxy from the Contributor's
registered OpenID specifying the designated proxy's OpenID<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>Two
Quorum / Voting Options (<b><u>either</u></b> is sufficient to approve a
change)<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.5in;text-indent:-.25in;mso-list:l1 level3 lfo2'><![if !supportLists]><span
style='font-family:Wingdings'><span style='mso-list:Ignore'>§<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><u>Option
1<o:p></o:p></u></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:2.0in;text-indent:-.25in;mso-list:l1 level4 lfo2'><![if !supportLists]><span
style='mso-list:Ignore'>1.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>Quorum of greater of 60% of OIDF membership or 30 OIDF
members (<b><u>no</u></b> Quorum Bypass Option)<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:2.0in;text-indent:-.25in;mso-list:l1 level4 lfo2'><![if !supportLists]><span
style='mso-list:Ignore'>2.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>Supermajority vote of those constituting a quorum, plus
a majority concurrence by the OIDF Board, is necessary to approve a change to
the IPR Policy or Process<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.5in;text-indent:-.25in;mso-list:l1 level3 lfo2'><![if !supportLists]><span
style='font-family:Wingdings'><span style='mso-list:Ignore'>§<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><u>Option
2<o:p></o:p></u></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:2.0in;text-indent:-.25in;mso-list:l1 level4 lfo2'><![if !supportLists]><span
style='mso-list:Ignore'>1.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>Quorum of greater of 30% of OIDF membership or 30 OIDF
members (<b><u>no</u></b> Quorum Bypass Option)<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:2.0in;text-indent:-.25in;mso-list:l1 level4 lfo2'><![if !supportLists]><span
style='mso-list:Ignore'>2.<span style='font:7.0pt "Times New Roman"'>
</span></span><![endif]>Majority vote of those constituting a quorum, plus a
supermajority concurrence by the entire OIDF Board (where "absents"
and "abstains" count as "no" votes) is necessary to approve
a change to the IPR Policy or Process<o:p></o:p></p>
<p class=MsoListParagraph style='margin-bottom:11.0pt;text-indent:-.25in;
mso-list:l1 level1 lfo2'><![if !supportLists]><span style='font-family:Symbol'><span
style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><b>Quorum Bypass Option (does <u>not</u> apply
to modification of the IPR Policy or Process)</b> - If a quorum cannot be
obtained, even with proxies, there is not sufficient interest in an initiative
for OIDF Members to even send a proxy response. Given the core values of
consensus, this would mean that any vote would likely not reflect consensus. To
allow work to continue, however, the WG can seek to bypass the quorum
requirement as follows:<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>WG
issues a second electronic notice to allow additional time to obtain a quorum<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>If
there is still not a quorum, and the delay is prejudicing the work of the WG or
preventing the opening of new WGs, the applicable WG Editors, or new WG
promoters, can petition the OIDF Board to waive the quorum requirement for that
vote<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>The
petition will be made online, and the OIDF Board will issue its decision within
14 days (and a failure to respond by the OIDF Board within this timeframe will
be deemed to be an approval of the petition)<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>The
OIDF Board <b><u>will</u></b> grant the petition unless it determines, in its
good faith business judgment, that allowing the particular vote without a
quorum is likely to create legal liability for OIDF<o:p></o:p></p>
<p class=MsoListParagraph style='mso-margin-top-alt:0in;margin-right:0in;
margin-bottom:11.0pt;margin-left:1.0in;text-indent:-.25in;mso-list:l1 level2 lfo2'><![if !supportLists]><span
style='font-family:"Courier New"'><span style='mso-list:Ignore'>o<span
style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]>If
the OIDF Board grants or is deemed to have granted a petition, the Board will
also take affirmative steps to increase participation in future core decision
making within the particular WG<o:p></o:p></p>
<p class=MsoNormal>Thanks, and we look forward to your comments.<o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>David
K. Daggett<a name=""></a><o:p></o:p></span></b></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>K&L
Gates</span><span style='font-size:12.0pt;font-family:"Arial","sans-serif"'><br>
</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>618 West
Riverside Avenue<br>
Suite 300<br>
Spokane, Washington 99201-0602<br>
Voice: (509) 624-2100<br>
Fax: (509) 444-7864<br>
Cell: (509) 710-3068<br>
e-mail:</span><u><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>
</span></u><u><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><a
href="mailto:david.daggett@klgates.com"><span style='color:blue'>david.daggett@klgates.com</span></a></span></u><span
style='font-size:12.0pt;font-family:"Times New Roman","serif"'><br>
</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>web: </span><span
style='font-size:12.0pt;font-family:"Times New Roman","serif"'> <a
href="http://www.klgates.com/"><span style='font-size:10.0pt;font-family:"Arial","sans-serif";
color:blue'>www.klgates.com</span></a></span><o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
</div>
<P>
<FONT face="Arial" size="2" color="gray">This electronic message contains information from the law firm of Kirkpatrick & Lockhart Preston Gates Ellis LLP. The contents may be privileged and confidential and are intended for the use of the intended addressee(s) only. If you are not an intended addressee, note that any disclosure, copying, distribution, or use of the contents of this message is prohibited. If you have received this e-mail in error, please contact me at david.daggett@klgates.com.
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