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Market Overview:<br />
The<br />
MichaelBass<br />
Group<br />
Patent Valuation Report<br />
Issued January 22, 2013<br />
MMRGLOBAL, INC. MMRF.OB<br />
According to The Center for Information Technology Leadership (CITL) PHRs are projected to be a $19 billion dollar market. [1] Several<br />
movements are behind the growing popularity of PHRs, including interest in web-based social networking and the Health 2.0 movement. [2]<br />
Another concept that promotes the PHR as a tool for patient self-management is the web-based personal medical home model. [3] Many<br />
consumers have PHRs through their employers, health insurers, or health providers. Currently, 10 percent of the public takes advantage of<br />
PHRs, however, privacy issues and access limitations remain a large concern. [10] Additionally, there are consumers who have PHRs through<br />
independent vendors. One estimate indicates that seventy million people in the United States have access to a PHR. [4] The Federal<br />
government ruled on August 23rd, 2012 that Stage 2 Meaningful Use taking effect in 2014 requires “electronic or online access” to patient<br />
health data versus the previous rule which only required a copy of patient health information. [11] With regard to health benefits, there was a<br />
5.25-point reduction in diastolic blood pressure for patients that used a PHR frequently. [10] Primary factors contributing to the increase in<br />
demand for PHRs in 2013 includes 32 million previously uninsured Americans placing increased demands on the health system, the<br />
imperative for sharing medical record information with patients in Stage 2 MU and tools like PHRs can potentially play a critical role in<br />
preventing re admissions within 30 days of discharge.<br />
* This report uses the U.S. Department of Health and Human Service’s definition of a PHR and patient portal with the terms being synonymous. [28]<br />
PHR Facts:<br />
Although only 7% of patients were using a PHR, more than 50% said they would<br />
be likely to use one if a physician recommended it. [12]<br />
Digitally connecting providers to one another and with patients, experts say, is<br />
key to improving patient care, facilitating safety safety and and efficiency, and and ultimately<br />
reducing costs. [13]<br />
An estimated 70 million Americans have access to a PHR, according to the<br />
Massachusetts-based Center for Information Technology Leadership, though<br />
most most have not adopted the technology. For example, Aetna offers its PHR to 9<br />
million members, yet only 1 million use it. [13]<br />
Patients who use an interactive personal health record (IPHR) are almost twice<br />
as likely to be up up to date with clinical preventive services as those who do not,<br />
according to a new study led by Alex Krist, M.D., M.P.H. [17]<br />
Americans who have access to their health information through personal health<br />
records (PHRs) (PHRs) report that they know more about their health, health, ask more ques-<br />
tions, and take better care of themselves than when their health information information was<br />
less accessible to them in paper records. [24]<br />
Twice as many Gen X and Y consumers want to access and maintain their PHRs<br />
using a mobile device than do Baby Boomers and Seniors. [26]<br />
Approximately six out out of ten ten consumers consumers (57 percent) want to to access an on online<br />
PHR connected to their doctor’s office. [26]
The<br />
MichaelBass<br />
Group<br />
Significant Developments<br />
Since this report was last published in January 2012 there have been a number of dramatic changes in the PHR/patient portal market.<br />
According to the Congressional Budget Office, the insurance mandate in the Affordable Care Act means that starting January, 1 2014,<br />
14 million Americans will be insured with the remaining 16 million coming online by 2021. [29] A report from PwC’s Health Research<br />
Institute describes the newly-insured demographic as less educated, more racially diverse, and more than twice as likely to speak a<br />
primary language other than English. Many will also never have been insured before. [30] Given these dynamics providers will need to<br />
identify processes and tools that will help them to successfully get on board this new segment of the population. Tools such as PHRs<br />
will become increasingly important to communicate with and engage this patient population. PHRs that provide channels for providers<br />
and patients to connect digitally is a key factor to improving patient care, facilitating safety and efficiency and reducing costs. [13]<br />
A second, and significant development is Stage 2 Meaningful Use requirements for providers to ensure at least 5% of patients access,<br />
print, share or download their health records. [31] This will most likely spur unprecedented demand for PHRs enabling patients to<br />
access their digital records. With the CMS 30 day readmission rate penalties now in place providers are quickly exploring strategies<br />
and technologies that can help to reduce re admissions. Many studies suggest that better communication and engagement after<br />
discharge leads to lower readmission rates. The University of Colorado at Denver’s Care Transitions Program demonstrated a 20 to<br />
40 percent reduction in overall hospital readmission rates through the use of an innovative transition model that required the use of<br />
a PHR. [32] Given the tailwinds resulting from federal mandates and research that continues to demonstrate the efficacy of PHRs, the<br />
market is positioned for what can be a break-out year.
The<br />
MichaelBass<br />
Group<br />
Intellectual Property Portfolio<br />
The following list is a comprehensive up to date compilation of the MMRGLOBAL patent portfolio.<br />
*Please note the patents listed here and considered in the valuation do not include the biotech patents, and additional claims being filed which are a<br />
separate part of MMRGlobal’s patent portfolio.<br />
Patent Portfolio Overview<br />
Patent Report by Invention<br />
COUNTRY REFERENCE# TYPE FILED SERIAL # ISSUED PATENT# STATUS<br />
AGGREGATION OF DATA FROM THIRD PARTY ELECTRONIC MEDICAL OR HEALTH RECORDS SYSTEMS INTO A PERSONAL<br />
HEALTH RECORD ACCOUNT<br />
UNITED STATES P10196US00 NEW 5/1/2012 13/461,219 PENDING<br />
DELIVERY OF ELECTRONIC MEDICAL RECORDS OR ELECTRONIC HEALTH RECORDS INTO A PERSONAL HEALTH RECORDS<br />
MANAGEMENT SYSTEM<br />
UNITED STATES P10123US00 NEW 2/20/2012 61/600,868 PENDING<br />
ELECTRONIC HEALTH RECORDS IN CLINICAL TRIALS<br />
UNITED STATES P09605US01 FCA 4/8/2011 13/082,896 PUBLISHED<br />
HEALTH RECORD WITH INBOUND AND OUTBOUND FAX FUNCTIONALITY<br />
UNITED STATES P10275US00 NEW 6/21/2012 61/662,417 PENDING<br />
METHOD AND SYSTEM FOR MANAGING PERSONAL HEALTH RECORDS WITH TELEMEDICINE AND HEALTH MONITORING<br />
DEVICE FEATURES<br />
UNITED STATES P10102US01 NEW 1/8/2013 13/736, 384 PENDING<br />
UNITED STATES P10102WO00 NEW 1/8/2013 PCT/US13/20641 PENDING<br />
METHOD AND SYSTEM FOR PROVIDING ONLINE MEDICAL RECORDS WITH EMERGENCY PASSWORD FEATURE<br />
UNITED STATES P07531US01 FCA 3/26/2007 11/690,996 PUBLISHED<br />
UNITED STATES P07531US02 CIP 9/4/2008 12/204,474 PUBLISHED
The<br />
MichaelBass<br />
Group<br />
Intellectual Property Portfolio<br />
The following list is a comprehensive up to date compilation of the MMRGLOBAL patent portfolio.<br />
*Please note the patents listed here and considered in the valuation do not include the biotech patents, and additional claims being filed which are a<br />
separate part of MMRGlobal’s patent portfolio.<br />
Patent Portfolio Overview<br />
Patent Report by Invention<br />
COUNTRY REFERENCE# TYPE FILED SERIAL # ISSUED PATENT# STATUS<br />
METHOD AND SYSTEM FOR PROVIDING ONLINE MEDICAL RECORDS<br />
UNITED STATES P07286US00LORSCH NEW 9/12/2005 11/225,518 2/21/2012 8,121,855 ISSUED<br />
UNITED STATES P07286US01 CIP 12/16/2005 11/305,685 2/14/2012 8,117,045 ISSUED<br />
CANADA P07286CA00 DCA 2/10/2006 2,615,128 PENDING<br />
EUROPEAN PATENT P07286EP00 DCA 2/10/2006 06720652.4 PUBLISHED<br />
HONG KONG P07286HK00 CEQ 2/10/2006 08112621.4 PUBLISHED<br />
ISRAEL P07286IL00 DCA 2/10/2006 190,064 PENDING<br />
JAPAN P07286JP00 DCA 2/10/2006 2008-529977 PUBLISHED<br />
JAPAN P07286JP01 DIV 2/10/2006 2012-196065 PENDING<br />
SOUTH KOREA P07286KR00 DCA 2/10/2006 (PCT)2008-7008445 PUBLISHED<br />
MEXICO P07286MX00 DCA 2/10/2006 MX/a/2008/003495 4/23/2012 298478 ISSUED<br />
MEXICO<br />
P07286MX01 DIV 2/10/2006 MX/a/2012/001633 PENDING<br />
NEW ZEALAND P07286NZ00 DCA 2/10/2006 566650 12/7/2010 566650 ISSUED<br />
SINGAPORE P07286SG00 DCA 2/10/2006 200801954.9 1/30/2009 140830 ISSUED<br />
WIPO P07286WO00 CEQ 2/10/2006 PCT/US06/04867 NAT PHASE<br />
AUSTRALIA P07286AU00 CEQ 5/16/2006 2006202057 5/29/2008 2006202057 ISSUED<br />
AUSTRALIA P07286AU01 DIV 5/30/2008 2008202401 12/24/2009 2008202401 ISSUED<br />
UNITED STATES P07286US02 CON 9/4/2008 12/204,465 2/14/2012 8,117,646 ISSUED<br />
UNITED STATES<br />
P07286US03 CIP 9/4/2008 12/204,498 PUBLISHED<br />
SOUTH KOREA P07286KR01 DIV 11/17/2010 10-2010-7025779 PENDING<br />
UNITED STATES P07286US04 CON 3/7/2011 13/041,809 10/30/2012 8,301,466 ISSUED<br />
UNITED STATES P07286US05 CON 1/17/2012 13/352,026 11/27/2012 8,321,240 ISSUED<br />
UNITED STATES P07286US06 CON 1/17/2012 13/352,045 1/8/2013 8,352,287 ISSUED<br />
UNITED STATES P07286US07 CON 1/17/2012 13/352,068 1/8/2013 8,352,288 ISSUED<br />
UNITED STATES P07286US08 CON 10/29/2012 13/663,101 PENDING<br />
UNITED STATES P07286US09 1/8/2013 13/736,339 PENDING<br />
UNITED STATES P07286US10<br />
12/14/2012 13/714,694<br />
PENDING<br />
UNITED STATES P07286US11<br />
12/14/2012<br />
13/714,720 PENDING
The<br />
MichaelBass<br />
Group<br />
Intellectual Property Portfolio<br />
The following list is a comprehensive up to date compilation of the MMRGLOBAL patent portfolio.<br />
*Please note the patents listed here and considered in the valuation do not include the biotech patents, and additional claims being filed which are a<br />
separate part of MMRGlobal’s patent portfolio.<br />
Patent Portfolio Overview<br />
Patent Report by Invention<br />
COUNTRY REFERENCE# TYPE FILED SERIAL # ISSUED PATENT# STATUS<br />
MOBILE PLATFORM FOR PERSONAL HEALTH RECORDS<br />
UNITED STATES P10110US00 NEW 1/23/2012 61/589,805 PENDING<br />
MOBILE PLATFORM FOR PERSONAL HEALTH RECORDS<br />
UNITED STATES P10136US00 NEW 2/20/2012 61/600,861 PENDING<br />
PREPAID CARD FOR SERVICES RELATED TO PERSONAL HEALTH RECORDS<br />
UNITED STATES P10101US01 NEW 1/8/2013 13/736,340 PENDING<br />
WIPO P10101WO00<br />
NEW 1/8/2013 PCT/US13/20633 PENDING<br />
UNIVERSAL PATIENT RECORD CONVERSION TOOL<br />
UNITED STATES P09756US01 FCA 9/28/2011 13/246,948 PUBLISHED<br />
WIPO P09756WO00 CEQ 9/28/2011 PCT/US11/53594 PUBLISHED
Valuation Analysis<br />
The<br />
MichaelBass<br />
Group<br />
The industry accepted patent evaluation method that we used was PatentValuePredictor.com which has been developed and<br />
launched several years ago by Richard A. Neifeld and Dr. Martin Goffman.<br />
Dr. Neifeld holds a JD degree from George Washington University and a Ph.D. in Physics from Rutgers University. Dr. Neifeld is also<br />
the founder of Neifeld IP Law, PC. He is a patent attorney registered to practice in the State of Virginia, before the District Court for the<br />
District of Columbia, and before the United States Patent and Trademark Office. He is a member of several Intellectual Property as-<br />
sociations, and he is the former chair of the Interference Committee of the American Intellectual Property Lawyers Association.<br />
Dr. Martin Goffman holds a Ph.D. in Chemistry from Temple University and has owned and operated small high technology businesses<br />
for the past 15 years. In addition to StockPricePredictor.com. LLC, Dr. Goffman maintains his long time passion of information<br />
research, particularly in the patent information and related technology fields, and he is the principal of Martin Goffman Associates.<br />
Patent Value Predictor reports are based on patented macroeconomic models for automatically valuing patents. The reports are<br />
backed by patent and financial databases which record the proprietary statistics used to predict the potential market size, and your<br />
patent’s predicted share of this market. Many factors, such as the number of patents in the technology area, profit margins, and the<br />
GDP, figure into the statistically predicted valuation. [5]<br />
After using the Patent Value Predictor software we established a base value for the market and then took into account the predicted<br />
size of the market (GDP) and the fact that the market has a 7% usage rate of PHRs currently. [6] We adjusted those values to reflect<br />
the size of the market (GDP) predicted and the potential value of the patent portfolio accordingly. We recognized that the patents<br />
listed here have a remaining enforcement life of approximately 14 years from when they issue. The biggest factors in determining<br />
the value of the patent portfolio that we took into consideration were patent significance, the market size, the patent term, and<br />
amount of prior art.<br />
Based on our analysis, the range of value for these patents could reach $600 million to $1.1 billion in revenue based on very con-<br />
servative estimates that the market will reach the full GDP value of $19 billion in the next 10 years. [1] The risk factors for these patent<br />
values not realizing their predicted range of value include, adoption rate of PHRs, the claims granted in the patent are not enforce-<br />
able and widely used, the market doesn’t grow as quickly as predicted, the prices for PHRs drop substantially, and or government/<br />
regulatory forces. This valuation does not take into account the international patents which have issued in the MMRGlobal portfolio.<br />
Conclusions & Opportunities Looking Ahead<br />
The world’s healthcare IT market is expected to grow<br />
from $99.6 billion in 2010 to $162.2 billion in 2015, representing<br />
a CAGR of 10.2% from 2010 to 2015. [19] There<br />
are approximately over 150 PHRs [27] and 750 EMR’s<br />
[7] that have been identified as active in the marketplace.<br />
These 900 providers are potential license targets as well<br />
as potential infringers of MMRGlobal’s patent portfolio. There<br />
are over 5,500 hospitals and 56,000 pharmacies in<br />
the United Sates. MMRGlobal will pursue licensing agree-<br />
ments with Hospitals, Providers, Payors, Pharmacies and<br />
Software Vendors. Additionally MMRGlobal continually files<br />
claims with the US Patent Office on a regular<br />
basis to enhance the patent portfolio.<br />
PHRs will continue to evolve and will become more standard-<br />
ized as regulations and legislation governing them go into effect.<br />
As outlined in the Federal Strategic Health IT Plan published in<br />
September 2011, the government has a stated goal to empower<br />
the individual and offer incentives around giving patients access<br />
to their health information in an electronic format or (PHR). [8] A<br />
key tenet of Stage 2 Meaningful Use, which takes effect in 2014,<br />
will rely heavily on the functionality that PHRs afford providers<br />
to engage patients and their families in their care. [8] In 2012,<br />
estimates are that the government paid out $1.2 billion in the<br />
month of December alone, with an estimated total of $10.3<br />
billion in EHR incentive payments since the start of the program<br />
in 2009. [33]
The<br />
MichaelBass<br />
Group<br />
References and Sources<br />
1. Jones, D.A., Shipman, J. P., Plaut, D.A., Selden, C.R. (2010). Characteristics of personal health records: fi ndings of the Medical<br />
Library Association/National Library of Medicine Joint Electronic Personal Health Record Task Force. Journal of Medical<br />
Library Association. (98)3 243-249<br />
2. Coffi eld, RL, DeLoss, GE, Mooty GP. The rise of the personal health record: panacea or pitfall for health information. Health<br />
Lawyers News. 2008 Oct; 12 (10): 8–13.<br />
3. Scherger, JE. Future vision: is family medicine ready for patient-directed care?. Family Medicine. 2009 Apr; 41 (4): 285–8.<br />
4. Kaelber, DC, Jha, AK, Johnston D, Middleton B, Bates DW., A research agenda for personal health records (PHRs). Journal<br />
of American Medical Information Association. 2008 Nov–Dec; 15, (6): 729–36. DOI10.1197/jamia.M2547.<br />
5. Neifeld, R. A., Martin, G., (n.d.). Retrieved from http://www.patentvaluepredictor.com<br />
6. Singer, E. (2010, April 14). Use of Personal Health Records Is Growing. Technology Review. Retrieved from http://www.technologyreview.com/blog/editors/25047/<br />
7. Douglas, M., Eisenberg, C. (2011, September 22). Electronic Medical Records: A Silicon Valley Gold Rush. Bloomberg<br />
Businessweek. Retrieved from http:// www.businessweek.com/magazine/electronic-medical-records-a-silicon-valley-goldrush-09222011.html<br />
8. United State Department of Health and Human Services. (2011, September 12). Retrieved from http://healthit.hhs.gov/strategicplan<br />
9. United State Department of Health and Human Services, Centers for Medicare and Medicaid. (2011, December 31). State<br />
Breakdown of Payments to Medicare and Medicaid Providers through December 31, 2011. Retrieved from http://www.cms.<br />
gov/EHRIncentivePrograms/ 56_DataAndReports.asp#TopOfPage<br />
10. “Health Information Technology.” Research Activities, November 2012: : Study Finds Personal Health Records Do Not Impact<br />
Hypertension Care. N.p., n.d. Web. 29 Nov. 2012. <br />
11. “MMRGlobal Brings Retail Prepaid Personal Health Record Card to Healthcare Professionals.” Blogspot.com . N.p., n.d. Web.<br />
29 Nov. 2012.
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References and Sources<br />
19. “MMRGlobal Receives Fifth Patent Expanding Rights to Control of Online Medical Records.” Yahoo! Finance. N.p., 26 Nov.<br />
2012. Web. 29 Nov. 2012. <br />
20. Siegal, Gil. “Virginia Journal of Law & Technology.” Enabling Globalization of Health Care in the Information Technology Era:<br />
Telemedicine and the Medical World Wide Web 17.1 (2012): 1-34. Web. 29 Nov. 2012. <br />
21. “Personal Health Records (PHRs).” Medicare.gov: The Offi cial U.S. Government Site for Medicare. N.p., n.d. Web. 30 Nov.<br />
2012. <br />
22. “The Benefi ts & Advantages of Personal Health Records.” The Benefi ce and Advantages of Online Medical Records, Using<br />
Access Health Records, the Leader in Personal Health Records, Phr. N.p., n.d. Web. 30 Nov. 2012. <br />
23. “What Are the Key Challenges to PHR Adoption?” What Are the Key Challenges to PHR Adoption? N.p., n.d. Web. 30 Nov.<br />
2012. <br />
24. * Sherman, Spencer A. “New National Survey Finds Personal Health Records Motivate Consumers to Improve Their Health<br />
- CHCF.org.” New National Survey Finds Personal Health Records Motivate Consumers to Improve Their Health - CHCF.org.<br />
California HealthCare Foundation, 13 Apr. 2010. Web. 30 Nov. 2012. <br />
25. Goel, MS etal “Disparities in enrollment and use of an electronic patient portal” J Gen Intern Med. 2011 Oct;26(10):1112-6.<br />
Epub 2011 May 3. http://www.ncbi.nlm.nih.gov/pubmed/21538166<br />
26. Keckley, Paul etal “The Mobile Personal Health Record” Deloitte Center for Health Solutions 2010 http://www.deloitte.com/<br />
view/en_US/us/Insights/ centers/ center-for-health-solutions<br />
27. Lewis, Nicole “Google Health Dies, But PHR Market Still Growing” Information Week http://www.informationweek.com/healthcare/electronic-medical-records/google-health-dies-but-phr-market-still/231000876<br />
28. http://www.healthit.gov/providers-professionals/faqs/what-patient-portal<br />
29. http://www.ama-assn.org/amednews/2012/10/22/bil21022.htm<br />
30. “Health Insurance Exchanges: Long on options, short on time,” PwC, Oct. 8 (www.pwc.com/us/en/health-industries/publications/public-private-health-industry-exchange-models.jhtml)<br />
31. http://www.ama-assn.org/amednews/2012/09/17/bisb0917.htm<br />
32. http://www.innovations.ahrq.gov/content.aspx?id=1833<br />
33. http://www.modernhealthcare.com/article/20130108/NEWS/301089956/whopping-1-22-billion-in-ehr-payments-in-december)
The<br />
MichaelBass<br />
Group<br />
About The MichaelBass Research Group<br />
The MBG research group looks at economic, market, industry and company data relevant to the healthcare sector to help companies<br />
set their strategic direction. The MBG’s primary goal in research is to provide in-depth, domain knowledge and deliver specialized<br />
analysis to our client base. We seek to fi nd strong, well-managed public and private companies that represent both value and growth<br />
opportunities to investors. As a result, MBG is considered to be an invaluable resource among boutique investment banks, recognized<br />
for our breadth and depth of insight and timeliness timeliness of service. Our clients receive detailed, up to date information that that they rely on.<br />
The MBG research department is powered by a team of highly experienced experienced analysts focusing on more than 400 400 growth companies in<br />
HCIT. Our analysts analysts aim to uncover industry and company developments before before they are widely known, understanding events as they<br />
evolve and disseminating the facts as soon soon as they are verifi ed, including policy changes, market shifts shifts and valuations.<br />
Disclaimers:<br />
THIS REPORT IS TIME-DEPENDENT AND STATISTICAL IN NATURE, AND DOES NOT TAKE INTO ACCOUNT PATENT VALIDITY,<br />
MARKET CONDITIONS, BUSINESS CONDITIONS, OR LEGAL, BUSINESS OR FINANCIAL FACTORS, WHETHER OTHER<br />
KNOWN OR UNKNOWN, ANY OR ALL OF WHICH MAY AFFECT THE ACCURACY OR COMPLETENESS OF THIS SERVICE. THE<br />
INFORMATION CONTAINED IN THIS REPORT WILL CHANGE FROM TIME TO TIME DEPENDING ON THE ISSUANCE OF NEW<br />
PATENTS OR PUBLISHED APPLICATIONS, THE EXPIRATION OF PATENTS, PATENT INVALIDITY OR REISSUES, ACCURACY<br />
OF PUBLISHED PATENT DATA, OR OTHER CONDITIONS OVER WHICH THE MICHAELBASS GROUP HAS NO CONTROL. THE<br />
MICHAELBASS GROUP ASSUMES NO RESPONSIBILITY FOR ERRORS OR OMISSIONS IN THIS REPORT, AND MAKES NO, AND<br />
EXPRESSLY DISCLAIMS ANY, REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THIS REPORT.