Blausen Legal Marketing Proposal

2. Blausen Legal Marketing Proposal The following is a proposal to reposition Blausen Legal in the legal graphic and animation market and to repackage it as an exclusive service to a limited number of legal services providers. This rationale for this proposal is outlined below.

3. I. Blausen’s success in the legal field has not been optimally successful because: • Direct mail tossed. Legal services providers (“LSPs”: trial attorneys law firms, expert witness organizations, etc.) have not been responsive to direct mail and other promotion efforts (i.e., law firm “gatekeepers” such as secretaries and paralegals cull direct mail before it arrives on the decision-maker’s desk); • Low “a la carte” volume. LSPs that use Blausen do so only occasionally and purchase via the current “1-year usage for $1000” offer; • Pre-existing relationships.LSPs have (and are often obligated to use) “in-house” resources or have pre-existing and loyal relationships with other animation and illustration producers;

4. I. Blausen’s success in the legal field has not been optimally successful because (cont.): • Need a custom product.Perception that Blausen’s “off the shelf” animations do not match LSP needs and/or are perceived as too generic and/or concern over/lack of knowledge re adaptability of “off the shelf” animations to case-specific evidence; • Too expensive.Blausen’s product line is perceived as cost prohibitive to some LSPs with limited resources or case preparation budgets controlled by cost-sensitive clients or insurance companies; • Too fancy.Blausen’s product line is perceived by as too “fancy” or sophisticated for use in front of a jury by courtroom advocates seeking to present a “simple” case with no or limited “razzle dazzle”;

5. I. Blausen’s success in the legal field has not been optimally successful because (cont.): • Courtroom utility only.LSPs perceive Blausen’s product line as a “courtroom only” trial tool and have not recognized its broader utility as a discovery and pre-trial preparation and educational tool for attorneys, support staff and expert witnesses; • What’s a digital animation?Some LSPs have no experience with digital animations and/or have concerns and fears about an animation’s legal admissibility and technical manageability in the courtroom; • Lack of awareness.LSPs simply remain unaware of Blausen.

6. II. Blausen Legal should consider repackaging and repositioning itself as an exclusive library and support services available only to a select and limited number of legal service providers and their clients emphasizing the following factors: • • Exclusivity.By removing its product line from the general market and limiting its availability in the legal arena, LSPs will perceive that • • Their exclusive access will eliminate or substantially reduce the possibility that this resource will be available to the opposition; • • They can use this exclusive access to promote the firm to potential clients pursuing or defending cases where juror understanding of medical issues is critical.

7. II. Blausen Legal should consider repackaging and repositioning itself as an exclusive library and support services available only to a select and limited number of legal service providers and their clients emphasizing the following factors (cont.): • Reduced cost to LSPs.By creating and making available a “pass through” invoicing system, Blausen can permit LSPs to assign an agreed upon fee to Blausen products downloaded for use in a specific case that can be invoiced to the client and paid to Blausen as part of the case’s expenses. In addition, depending on the LSPs selected access, animator/illustrator time can also be invoiced back to the LSP’s client. As an added incentive, fees recovered by Blausen under this system could be used to offset an LSPs annual licensing fee for the following year. This system could allow the LSP to enjoy the benefits of the Blausen library while defraying and reducing its licensing fee by including Blausen products as an expensable part of the discovery and trial phases of a case. (See Licensing Options in Section IV below.)

8. II. Blausen Legal should consider repackaging and repositioning itself as an exclusive library and support services available only to a select and limited number of legal service providers and their clients emphasizing the following factors (cont.): • • Internal added value.The Blausen library can broaden and enrich a firm’s depth of resources available to maximize case outcome at every phase of litigation. Based on the Blausen license options selected, an LSP can make the Blausen library available to attorneys and legal support staff tasked with understanding and the medical causation and/or damages aspects of a case or legal issue. The voice-over narratives can further enhance visual understanding as attorneys and staff • • become familiar with the case’s medical/damage aspects; • • identify case presentation themes; • • create a case strategy; • (cont.)

9. II. Blausen Legal should consider repackaging and repositioning itself as an exclusive library and support services available only to a select and limited number of legal service providers and their clients emphasizing the following factors (cont.): • • prepare discovery for the opposition; • • respond to discovery; • • prepare to depose opposition fact and expert witnesses; • • interact with consulting experts; • • prepare expert witnesses to testify; • • craft pre-trial motions; • • respond to pre-trial motions; • • prepare trial exhibits and jury demonstratives.

10. II. Blausen Legal should consider repackaging and repositioning itself as an exclusive library and support services available only to a select and limited number of legal service providers and their clients emphasizing the following factors (cont.): • Customizability.Because Blausen controls each animation’s “master” as part of its library, if a specific “off the shelf” Blausen animation needs to be customized to speak to a case’s particular facts or to address an attorney or witness’s needs, such changes can be accomplished with Blausen’s in-house animators cost-effectively and in minimal time.

11. II. Blausen Legal should consider repackaging and repositioning itself as an exclusive library and support services available only to a select and limited number of legal service providers and their clients emphasizing the following factors (cont.): • Customizability.Because Blausen controls each animation’s “master” as part of its library, if a specific “off the shelf” Blausen animation needs to be customized to speak to a case’s particular facts or to address an attorney or witness’s needs, such changes can be accomplished with Blausen’s in-house animators cost-effectively and in minimal time. • International applications.LSPs can take advantage of the multilingual voice narratives for use in international jurisdictions and as part of domestic investigations and evidence gathering.

12. III. Benefits to Blausen of repositioning and repackaging itself in the legal market: • Reduced Blausen marketing costs.By limiting itself to a select and exclusive list of LSPs, Blausen can eliminate wasteful costs associated with mass marketing to lawyers and law firms. • Increased marketing efficiency.Blausen’s marketing dollars can be spent more efficiently by focusing on clients who have the resources and clientele to justify the expense of acquiring a license to the entire Blausen library. • Increased revenue to Blausen.Instead of making its library available to the entire legal marketplace at an “a la carte” rate, Blausen can maximize its revenue by marketing to LSPs who understand the value and are capable of affording the annual licensing fee associated with access to the Blausen library;

13. IV. Licensing Options Rather than a “one size fits all” licensing model, it may be worthwhile to consider a three-tiered approach, with varying features and access to the Blausen library at each level based on LSP needs and costs. • A) Platinum Access (3-year contract; $200,000 annual fee) • • Unlimited access to the entire Blausen Medical 3D Atlas; • • Unlimited access to the multi-lingual voice-over capabilities; • • Unlimited use of animations and illustrations for licensed purposes. • • Twenty hours of animator time annually toward a building an original animation • or customization of a maximum of two existing animations. • • Twenty hours of illustrator time annually toward creation of two original • illustrations or customization of a maximum of three existing illustrations. • • All fully-paid, LSP-initiated Blausen invoices credited 100% toward the LSPs • following year’s annual license fee.

14. IV. Licensing Options Rather than a “one size fits all” licensing model, it may be worthwhile to consider a three-tiered approach, with varying features and access to the Blausen library at each level based on LSP needs and costs (cont.). • B) Gold Access (3-year contract; $150,000 annual fee) • • Unlimited access to the entire Blausen Medical 3D Atlas; • • Unlimited access to the American English voice-over capabilities; • other language capabilities available at a reduced rate; • • Unlimited use of animations and illustrations for licensed purposes; • • Ten hours of animator time annually toward a building an original animation or • customization of a maximum of two existing animations; • • Ten hours of illustrator time annually toward creation of one original illustration • or customization of a maximum of two existing illustrations; • • All fully-paid, LSP-initiated Blausen invoices credited 75% toward the LSPs • following year’s annual license fee.

15. IV. Licensing Options Rather than a “one size fits all” licensing model, it may be worthwhile to consider a three-tiered approach, with varying features and access to the Blausen library at each level based on LSP needs and costs (cont.). • C) Bronze Access (3-year contract; $100,000 annual fee) • • Unlimited access to selected portions of the Blausen Medical 3D Atlas; • • Language capabilities available for an additional cost; • • Unlimited use of selected licensed animations and illustrations for • licensed purposes. • • Five hours of animator time annually toward a building an original animation or • customization of a maximum of an existing animation; • • Five hours of illustrator time annually toward creation of one original illustration • or customization of an existing illustration; • • All fully-paid, LSP-initiated Blausen invoices credited 50% toward the LSPs • following year’s annual license fee.

16. V. Target Legal Services Providers While the number of LSPs which possess the clientele, caseload and resources to justify acquisition of a Blausen license may vary, they generally have the following characteristics: • National U.S. presence (offices in five or more major U.S. cities) • International presence (offices in two or more major international cities) (cont.)

17. V. Target Legal Services Providers While the number of LSPs which possess the clientele, caseload and resources to justify acquisition of a Blausen license may vary, they generally have the following characteristics (cont.): • • Substantial litigation and trial practice (usually defense) involving two • or more of the following areas: • • Mass torts (e.g., pharmaceutical, environmental, etc.); • • Catastrophic industrial disasters (e.g., refinery explosions); • • Intellectual property/patent litigation related to medicine or personal injury; • • Product liability • • Professional negligence (e.g., legal/medical malpractice)