PERNOD RICARD. Connected Objects: The Experience of Pernod Ricard. Mathieu PROT, Group IP Director

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1 PERNOD RICARD Connected Objects: The Experience of Pernod Ricard Mathieu PROT, Group IP Director 1

Who We Are International Growth 1975 2000

2 Who We Are International Growth Purchase 39,1% of Seagram's Wines & Spirits businesses Acquisition of Allied Domecq 2008 Acquisition of Vin&Sprit 2

3 Who We Are Key Figures No. 1 worldwide in Premium and Prestige Spirits 8 BN in net sales 2 BN in Group net profit 18,000 employees 80 Market Companies covering 3 Regions 2012/2013 net sales: 39% 35% Americas Europe 26% Asia/Pacific 70% OF PROFITS FROM RECURRING OPERATIONS RESULT FROM REGIONS OUT OF EUROPE 3

4 Our Brands Our strategic assets The Pernod Ricard House of Brands 2 global icons 7 strategic Premium spirits brands 5 strategic Prestige spirits and champagne brands 4 Priority Premium wine brands 18 key local brands 4

5 Tradition and Innovation Tradition: the roots of our wines and spirits th anniversary 1932: invention of the recipe 2014: the recipe remains unchanged 5

6 Tradition and Innovation Tradition: the roots of our wines and spirits 200 years and only 7 cellar masters Aging process from 21 to 38 years 6

7 Tradition and Innovation Innovative companies What first comes to mind? 7

8 Tradition and Innovation Innovation: a driver for Pernod Ricard 2012 # 15 Pernod Ricard # 24 Google # 26 Apple 8

9 Tradition and Innovation Innovation: a driver for Pernod Ricard 2014 product launch overview 9

10 Tradition and Innovation Innovation: a driver for Pernod Ricard The advent of the connected consumer 10

11 Tradition and Innovation Innovation: a driver for Pernod Ricard Taking part in the change 3 experiences of Pernod Ricard with connected objects 11

12 Enabling consumers to protect their favourite brands: The Connected Bottle 12

13 The Connected Bottle Our initial problem China is the world s largest spirits market but it is also plagued by counterfeit products. Counterfeiting leads to: 1. Millions of Euros in loss of revenues 2. Lack of consumer trust in the brand 3. Consumer health hazards 14

14 The Connected Bottle Pernod Ricard s response 15

15 The Connected Bottle 16

16 The Connected Bottle A unique digital authentication Enter the 8-caracter code above the QR code OR If the code is valid, you will be directed to an authentication page Scan the QR code with your smartphone 17

17 The Connected Bottle A unique digital authentication Enter the 8-caracter code above the QR code OR If the code is invalid, an automated message will appear and be sent to Pernod Ricard Scan the QR code with your smartphone 18

The Connected Bottle The intellectual property of the connected bottle Trademark, copyright, design patent, know-how: Owned by Pernod Ricard QR Code: Used by

18 The Connected Bottle The intellectual property of the connected bottle Trademark, copyright, design patent, know-how: Owned by Pernod Ricard QR Code: Used by consumers to authenticate bottles Free of any licence Unfounded patent troll threat Seal Vector : Used by Pernod Ricard teams to authenticate bottles Licensed by ATT 19

19 Changing the relationship between consumers and brands: tshirtos 2.0 by Ballantine s 20

20 tshirtos 2.0 by Ballantine s What is tshirtos 2.0? The world s first scrunchable and wearable t-shirt A reinvention of the t-shirt using modern technology A canvas of self-expression The True You 21

21 tshirtos 2.0 by Ballantine s What s inside? A battery Bluetooth e-broidery 22

22 tshirtos 2.0 by Ballantine s How will you use tshirtos 2.0? Be creative Express yourself Share 23

23 tshirtos 2.0 by Ballantine s Inception and development Idea for a connected t-shirt Collaboration with a first agency Evolution of the concept Collaboration with a second agency tshirtos Technology under licence Ownership of trademarks and domain name No transfer of rights tshirtos 2.0 Technology developed from scratch Technology under licence Ownership of trademarks and domain name No transfer of rights 24

24 tshirtos 2.0 by Ballantine s Intellectual property rights strategy Ownership of trademark tshirtos Ownership of domain name tshirtos.com Outsourcing of the development and production No ownership of the technology 25

25 tshirtos 2.0 by Ballantine s Latest news No commercialization at present website First run of 20 tshirtos 2.0 across various markets Worn by DJs, musicians, actors at public events 26

26 Project Gutenberg Inception and development Redefining the cocktail experience Commitment to the conviviality of the future: An experience that is connected, entertaining, tailored and responsible 28

27 Project Gutenberg Brought to you by The start-up of Pernod Ricard Activating global scale breakthrough innovation to invent the future of conviviality 29

28 Project Gutenberg Connection to a service platform Mixology tutorials Personalised suggestions Content level indicator 30

29 Project Gutenberg Non-refillable book containers Recyclable packaging At-home delivery by postal service 31

30 Design patents Copyright Domain names Trademarks Patents 32

31 Project Gutenberg Accompanying the revolution Business incentive to publicly promote innovations Necessity to ensure legal protection 33

32 Project Gutenberg Communication timeline Collaboration + n years Priority year NDA and R&D contracts Patent filing Design patent filing External communication 34

33 Project Gutenberg R&D Patent filing strategy Complex patent applications R&D Divisional applications 35

34 Project Gutenberg Trademark registration 3 to 5 years to use the trademark* Product inception Trademark registration Commercial launch * Depending on the country 36

35 Data privacy Copyright Design patents Domain names Trademarks Patents 37

36 New issues raised by connected objects: The question of data privacy 38

37 Data Privacy Data privacy rules Regional rules in the E.U. only Data Protection Directive 95/46/EC Regulation set for 2015 Global impact Different rules in each country e.g. In France, Law No of 6 January 1978 Common concerns worldwide Consent of the individual Purpose limitation Data transfer 39

38 Data Privacy Data privacy issues raised by connected objects Data retention limitation Security and confidentiality Third-party transfer Connected Objects Interconnection of databases International transfer Transparency 40

39 Data Privacy Implication Privacy by design Embeddingprivacy into the design of technologies Benefits Building and securing consumer trust Anticipatingthe long-term changes in data protection rules Implementation at Pernod Ricard Cooperation reinforced between the different departments Data privacy policy Globalprivacy compliance audit 41

40 Conclusion For different connected objects, there are different purposes and different legal needs And yet, many concerns are the same: Contractual security: NDA and R&D contracts. IP rights strategy: filing deadlines, length of procedures, licence agreements, dealing with patent trolls, etc. Internal strategy: emphasis on confidentiality, privacy by design, cooperation between different departments. 42

Intellectual Property Initiatives

Intellectual Property Initiatives Customers Casio is actively promoting intellectual property activities in line with its management strategy through cooperation between its R&D and business divisions.