Law Ecosystem IPv 6 Success 11 th April

Law Ecosystem IPv 6 Success 11 th April 2012 Beijing China Ann Marie Plubell, CEO 安 玛莉 The Plubell Firm 普鲁贝尔咨询公司 - 中西文化商务之桥梁 East-West Business Bridge 律师，法学博士， 商管理硕士 JD, LLM, MBA 高级企业顾问 Copyright 2012 All rights reserved.

The Plubell Firm § Gateway Router and Bridge to translate law: – IPv 4 policy to IPv 6 policy – China to US – Business to Government § Clients include government, Internet enterprises, and international NGOs § Vice Chair, US-ABA China Law Committee (ABA=450, 000 lawyers) § Support research, preservation and protection of the Giant Panda at Wo. Long, Sichuan, China www. plubellfirm. com 1

Agenda § Where We are Now — The Past Predicts the Future § Law and Government Policy § Legal Traps for the Unwary on the Way to IPv 6 Business Opportunity § Legal Environment for IPv 6 Success § China Can Lead the Way § Timeline and Next Steps www. plubellfirm. com 2

Crossing the River Stone by Stone: 摸着石头过河 IPv 4 is Hou Hai Lake IPv 4 4. 5 billion IP Addresses IPv 6 is All the World’s Oceans IPv 6 2 to the 128 th power of IP Addresses www. plubellfirm. com 3

The Past Predicts the Future The development of Internet users as percentage of population 45% 40% 35% 30% 25% 20% mid-1990 s : Internet has a tremendous 1969: First two 1982: Internet Protocol Suite (TCP/IP) impact on culture and commerce. nodes of what would standardized / world-wide network of become the fully interconnected TCP/IP networks 1994 : China joins the Internet. ARPANET were the Internet was introduced. called interconnected. 2003 : Chinese government : CNGI World (China Next Generation Internet) China 15% 10% 5% 0% 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 www. plubellfirm. com 4

The Past Predicts the Future Like Moore’s law, IP address uptake accelerates Number of IPv 4 address being used in China 350 300 What will happen to IPv 6? IPv 6 m 250 Moore’ law or More fast? i 200 l l 150 i 100 o n 50 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 year www. plubellfirm. com 5

China Policy March 27, 2012 National Development and Reform Commission (NDRC) Report Renewed Commitment and funding for full IPv 6 by 2014 – China 513 million Internet users (38. 3% of population) – BUT only has 332 million Ipv 4 addresses www. plubellfirm. com 6

United States Policy § 2008 United States Department of Defense (DOD) – IPv 6 Standard Profiles for IPv 6 Capable Products v. 3 § 2010 DOD, NASA, General Services Administration (GSA) – new rules for Federal Acquisition Process and IPv 6 capability § 2012 Goal: Office of Management and Budget (OMB) – ALL federal agency network backbones to support IPv 6 § National Institute of Standards and Technology (NIST) – Policy Declaration set up to certify IPv 6 acquisition as IPv 6 compliant or IPv 6 capable www. plubellfirm. com 7

Some US Federal IPv 6 Contracts During Past 12 Months § $3. 8 million contract awarded for task order to support DOD IPv 6 Transition Office § $24, 548, 433 contract for advanced metering infrastructure with IPv 6 capability § $9, 990, 048 contract awarded for installation of systems including IPv 6 routers www. plubellfirm. com 8

European Union Policy and Privacy Yin Yang 阴·阳 § EU recognizes Fundamental Human Right to be Forgotten § 1995 European Data Protection Directive (EDPD) § 2012 proposal for European Data Protection Regulation – Supersedes EDPD www. plubellfirm. com 9

US and Privacy /Security Tension Yin and Yang 阴·阳 § US Constitution recognizes Right to Privacy § 1994 Communications Assistance for Law Enforcement Act-CALEA – Warrantless search of telecom and Internet and real time monitoring – ISP must comply – Secret - No notice to the observed § 2004 -07 Vo. IP and Broadband Internet included – 62% expansion in government use since enactment § CALEA Hugely controversial will go to US Supreme Court www. plubellfirm. com 10

“ You Cannot Catch Tigers Without Entering the Tiger’s Den” 不入虎穴，焉得虎仔 § Local/Provincial IPv 6 Next Generation Internet Networks Improve Quality of Life § Health Care and Common Shared databases § Private Sector Wal-Mart-world’s largest retailer could use RFID-IPv 6 § Legal Services Sector-$650 billion of global GDP by 2015 could use “Smart” paper, IPsec always on www. plubellfirm. com 11

“One Cannot Talk to Summer Insects About the Ice” 夏虫不可语冰者，笃于时也 § Because of 2007 -08 recession, the government holds Board of Directors of publicly and privately tradable companies accountable for Risk Decisions and Disclosures § Be aware of shifts in legal and policy focus § Example: US Securities and Exchange Commission (SEC) § April, 2012 Meetings with Boards of Directors of Goldman Sachs, J. P. Morgan, and others www. plubellfirm. com 12

Competitors: “The Mantis Stalks the Cricket-The Oriole Eyes the Mantis” 螳螂捕蝉，黄雀在后 § Don’t forget the local Competitor who will eat you § Have your own legal team in the country capital § Example: § Chinese Company tries to buy failing US company Good plan, Law seemed to be on their sides, WTO support § Large US corporation wanted same target generates Congressional attention-suspicion § Chinese company had no credible voice in the capital www. plubellfirm. com 13

“Don’t Wait Until You are Thirsty to Build a Well” 临渴掘井，悔之何及 § Law as an element of design for IPv 6 business development at early stages § Build-in legal protections and defense as business moves across borders § Consider all aspects of law – IPv 6 traffic and Taxation – IPv 6 invention, innovation and Intellectual Property – IPv 6 disagreements and Dispute Resolution www. plubellfirm. com 14

Favorable Time to Promote IPv 6 Enterprise § Future for rapid commercialization is good § Only limit is the imagination § Cloud cost-saving credibility proven business model § Economic Environment in US favorable § Government support is committed § Technical Challenges are Addressed www. plubellfirm. com 15

China Can Show the Way Use Local Law to Achieve Global Goal US Leadership Model § ICANN a non-profit, California corporation with a transparent, independent international board elected by world’s regions and driven by bottom-up consensus decision model inclusive of the diversity of global Internet community § China can lead in the same way for IPv 6 www. plubellfirm. com 16

Next Steps and Timeline § June 6, 2012 World IPv 6 Launch! Join in! § Start an IPv 6 Business model today could be implemented in 6 -9 months! § Go forward with Confidence www. plubellfirm. com 17

Congratulations Wishes for Rapid Success! § The Plubell Firm East-West Business Bridge § 普鲁贝尔咨询公司 § 中西文化商务之桥梁 § Thanks and appreciation to Guo Xinran, He Tiantian, Li Hongyu www. plubellfirm. com 18