10/20/2012 Meeting - Corporate Worldwide Anti-Piracy

© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.
Richard Atkinson | Director, Worldwide Anti‐Piracy
Corporate Worldwide Anti‐Piracy: Introduction
Driving Adobe’s Comprehensive Approach to Grow Revenue & CCM through Conversion From Piracy

Pure
Pirates
13%
Tend Pirates
34%
Tend Legitimate
40%
Pure
Legitimate
13%
Only 13% of Software
Users are “Pure Legit”
74% of Software Users are
“Dual-Users”
(Purchase AND Pirate)
* Source MPA 2007 and 2009 studies focused on Dual-Consumers
All other: 2011 BSA/IDC global study of software consumption and piracy.
Debunking Misconceptions about our Software Pirate User Base
Non-Monetized
(piracy market share)
Consumers of Adobe Products
Monetized
(sales market share)
Perception
Reality
2

© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. * Source 2011 BSA/IDC global study of software consumption and piracy.
Contrary to Common Belief:
 ¾ of Software Users are Dual Users
 ~50% of IT Professions believe “over-deployment” is LEGAL
 ~50% of Users believe Peer-2-Peer Downloading is LEGAL
Individual Users
(Mature / Emerging)
Business IT Leaders
(</>500 employees)
NotConsideredPiracy
Considered
Piracy
Debunking Misconceptions about our Software Pirate User Base
3

© 2012 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 4
Software:
1x/year PC Games:
1x/quarter
eBooks:
1x/month
Movies:
1x/2 weeks
TV:
1x/week
Music:
1x/day
“Apps”:
1x/week
Are our consumers that different?

Deter End User Consumption through audits,
legalization, enforcement, and campaigns
Disrupt Distribution through internet
takedowns and enforcement
Disrupt Supply through investigations,
intelligence collection, and supply chain
security
Integrated Strategies and Actions across
stakeholders, focused on Pirate-Conversion
Improve Understanding of Pirate-User
Segments and Motivations
Enhance Differentiation between pirate and
legitimate product, experience, and value
Compete Better with Piracy
through Increased Value Proposition
Suppress Piracy
through Corrective Action
Mission: Drive Incremental Revenue and Adoption of CCM
through Conversion From Piracy
$
5

Alignment is Key to Achieving Our Goal
6
EXTERNAL PARTNERS
Leverage partners to curb piracy
beyond Adobe’s reach:
• Industry Organizations (BSA, etc)
• Supply Chain & Ecosystem
• Law Enforcement
• Resellers/Distributors/Channel
PRODUCT
Reinforce piracy deterrents as
well as add non pirate‐able
product benefits:
• Engineering/Architecture
• Product Mgt/Features
• Customer Experience/UI
CUSTOMER‐FACING
Work with internal teams to
maximize customer satisfaction and
conversion from pirate to legit:
• License & Compliance
• Field Sales
• Channel
• Customer Service
MARKETING
Market benefits of legitimate
software to drive conversion:
• Pricing / Positioning
• Research & Understanding
• PR / Communications
ANTI‐PIRACY
Provide overall Strategy, Central
Services, and data‐based insights
and guidance:
• Pirate‐Conversion Strategy
• Business Intelligence
• Global Investigations
• Online Enforcement
• Legal Coordination
• Communications
• BSA /Industry Assoc. Global /Regional
LEGAL AND SECURITY
Define processes and influence
legislation:
• Litigation/Enforcement
• Contracts/EULA’s
• Government Affairs & Legislation
• Action & Risk Management
• Joint Investigations

Guiding Principles
ALIGNMENT FOCUS
RESPONSIVE LEVERAGE
• Focus limited resources to maximize impact
• Prioritize efforts within geographies and segments of
highest impact/opportunity
• Progressively sequence actions to optimize the
cumulative effect
• Internal investments, activities & resources are
complementary, not silo‐ed
• Internal stakeholders aligned to Goals, Objectives, Priorities
• Internal efforts aligned with industry & associations efforts
• Adapt to new business models and associated piracy patterns
• Respond to measured effectiveness, trends, insights
• Adapt tactics to local market conditions
• Extend impact by coordinating business partners
• Spread cost and burden across industry
• Maximize law enforcement, govm’t relationships, legislation
Execute
Learn
Adapt

Corporate WW Anti-Piracy Team
Strategy & Leadership
Richard Atkinson
Global Program Manager
Mason Bacon
Business Intelligence
Pingping Medley
Legal Coordination
Diana Olin
Investigations
Michael Draper
Business Analysis
Jonas Brueggemann
Communications
Annick Mohageg-Baudot
EMEA Regional Manager
Philippe Briere
J/APAC Regional Manager
Rachel Fung
LTAM Regional Manager
TBD – final stage of interviews
8

Fill key gaps in consumer understanding, enabling enhanced targeting,
engagements, and opportunity for conversion:
 Understand consumer piracy behavior, attitudes, motivations (doing & thinking)
 Determine best opportunities for conversion (triggers & elasticity)
 Estimate piracy impacts & opportunities to business
 Provide strategic insights on where piracy is headed
Business Intelligence
General Profile Existing Sales Pipeline Pirate Downloading Product Activation Customer Research
Business
Intelligence

Using Data to Understand Consumers and their Behavior
10
P2P pirate download tracking
Product activation tracking
Piracy activity is
monitored by IP
address
Tracking data is
then used to
profile and
target pirates
Home Users
(trace to their ISP and to their
near-location/zip-code)
Employees at Businesses
(trace to Company Name)
Students & Faculty at Schools
and Universities
(trace to School Name)
All Internet-
enabled devices
have a unique,
traceable IP
address
Business
Intelligence

Dramatically decrease the availability of pirated product online, which is the
primary distribution method in most markets for counterfeit and regular piracy:
 Increase frustration of pirate-consumers
 Maximized leverage of tools and approaches
Global Online Enforcement
P2P
Locker &
Link
Auction
B2C/B2B
Web HTTP
(websites)
Search
Engine
Results
UseNet iRC
High High Very High Very High Very High Moderate Low
Low Moderate Moderate High High Moderate Low
Short-Term
Trial
Short-Term
Trial
BSA (WW)
SIIA (N/A)
IACC
Short-Term
Trial
None None
Appears
Low
Appears
High
Low to
Moderate
Too
Early
Too
Early
n/a n/a
Responses
Scale/Impact
Ability to
significantly disrupt?
Current Approach
Effectiveness
Online
Enforcement

Online Enforcement Effectiveness: How Long Does It Take
to Find “Pirate” Copies of Our Software? (13 seconds)
12
• This approach will be used to measure our Online Enforcement efforts (NOTE: STILL ESTABLISHING BASELINE, ENFORCEMENT
PILOTS IN THIS AREA HAD NOT YET STARTED)
• Currently, It only takes a consumer an average of 13 sec. to find a live download link ----- Our Target is 360 sec.
Online
Enforcement

Combat large piracy operations via the results of key global investigations:
 Provide insights to Adobe processes being wrongfully leveraged
 Create strategic disruptions to the Piracy Supply Chain / Ecosystem
 Stop pirate-discount products from displacing legitimate sales
Global Anti Piracy Investigations
Intelligence
Gathering
piracy@
adobe
Internal
Reporting
Piracy
Hotline
Industry
Partners
Internal
Tips
Law
Enforce
ment
Customer
Impact
Global
Impact
Pirates’ level of
sophistication
Revenue
Potential
Business
Impact
Investigation
Decision Factors
Global
Investigations

Linking 3 Teams/Experience for Investigations & Resolution
14
Worldwide
Anti-Piracy
(abuse by our consumers)
Corporate Legal
Fraud Investigations
(abuse by our employees)
Customer Service
Fraud Investigations
(abuse of Customer Service)

Example: current OEM Investigation
15
Futuresoft.com
Business and
Individual Customers
Government
Customers
Replicator
Replicator
OEM GL
Partners
Grey Market
Education
Distributer
Counterfeit
OEM
Distributor
Channel
Partner
Upgrades
Only
Potential
source of
leaked serial
numbers
Customers receive
Counterfeit Software
of Older Version +
Legitimate Upgrade to
Current Version
OEM
Serial #s
OEM Partner
OEM China
Replication
Supply Chain
Pirate Counterfeit
Ecosystem
(wholesale)
Retail Ecosystem
(some are Adobe APC Partners)
Being sold ~50% Off
To Customers believing they are getting
Legitimate Product at a discount
Current-Product Model (single element)
Older-Product + Upgrade Model (2 elements)
Primarily Impacting Key Mature Markets:
USA, UK, Germany, Japan, Australia
Global
Investigations
Redacted
Redacted

Intelligence Gathering
 Limited Intel
 Internal Test Purchases
 Internal Reporting
 Industry partners
 Industry Associations
 Strategic test purchases
16
Serial Number
Analysis
Industry
Associations
Internal
Reporting
Test
Purchases
Industry
Partners
German
Investigation
Law
Enforcement
Cases

Investigative Priorities
 Focus on point of compromise
 Eliminate internal source
 Establish scope
 How big is the problem
 Establish testing protocol
 How to identify compromised serial numbers
 Discover additional victims
 Combine investigative efforts
17

Data Analysis
18
Gather
subset of
serial
numbers
Identify
single point
of relation
All
numbers
relate to
one OEM
partner
All
numbers
sent to
same
country
Replicators
in China
identified

Current and Next Steps
19
Identified Main Distribution Channel
Identified Primary Suspects
Identified loopholes that allow
numbers to be compromised
Solidified partnership with other
victims
Prepare Civil and Criminal actions Last Step

Questions?

10/20/2012 Meeting - Corporate Worldwide Anti-Piracy

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