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Glossary of Licensing Terms

Acknowledgment

“Acknowledgement” shall mean, when used in reference to Transactions, the act of an electronic reply indicating that a message (communications or data exchange) has been received, often accompanied with an indicator of success of failure

Adaptations

“Adaptations” shall mean any code modifications, including patches and improvements, made by the Licensee or its assignees, that have been made to the SecurePlay Software. The Source Code of any adaptation may only be distributed from the Developer’s Forum, and will be identified by a unique name and version number, and attributed to its creator(s).

Affiliates

“Affiliates” shall mean the plural of any legal entity (such as a corporation, partnership, or limited liability company) that is controlled by Licensee. For the purposes of this definition, the term "control" means (i) beneficial ownership of at least fifty percent (50%) of the voting securities of a corporation or other business organization with voting securities or (ii) a fifty percent (50%) or greater interest in the net assets or profits of a partnership or other business organization without voting securities.

Business Application

The Business Application shall mean any work making use of the Licensed Subject Matter. (As an example, licensed subject matter could be a Secureplay Developer license or Data Obfuscator License). For example, a Business Application may be a game server application that creates SecurePlay transactions. Or, a Business Application may be a piece of software that is compiled with, calls, or linked with SecurePlay Software. Or, a Business Application may be a boxed product that makes used of IT GlobalSecure's Data Obfuscator technology. Licensee’s Business Applications must be restricted to their authorized Field of Use in their authorized Deployment Environment.

Commercial Use

“Commercial Use” shall mean any Business Application that satisfies any one or more of the following criteria:

(a) Derives revenue from End Users, distributors, resellers, or service providers of the Licensee’s Business Application; or,

(b) Enables the issuance of rewards, such as sweepstake offerings or drawings, for End Users of the business application, where such reward is any item of cash value, regardless of whether such reward is issued; or,

(c) Registers users, acquiring name or nickname and e-mail or other contact information, from End-Users;

(d) Applies if the number of transactions exceeds 1000 segments in one month, regardless of fees earned or award potential; or,

(e) Applies if the Licensee sells Licensed Subject Matter; or,

(f) Applies if the Licensee sells services employing Subject Matter.

Deployment Environment

“Deployment Environment” shall mean one or more of the following:

End Users are using personal computers (PCs, Macs, laptops) with non-networked Business Applications, or End Users are using devices that are not personal computers with non-networked Business Applications, or End Users are using Internet-connected devices, or End Users are using devices with wireless access, or End Users are using devices connected to a Private Network. Developer’s Forum

“Developer Forum” shall mean the development resources (documents, downloads, web pages, chats, forum pages, patches, and knowledge databases) hosted at the online SecurePlay Developer Forum website at www.SecurePlay.net . IT GlobalSecure maintains all rights to downloads hosted at that forum. IT GlobalSecure has perpetual royalty-free rights to use all adaptations and improvements made to the SecurePlay implementation as submitted by Licensees or registered members of the SecurePlay Developer Forum.

Electronic Product

An “Electronic Product” shall mean any product delivered in digital form over the Internet or any other form of digital media, regardless of delivery method or digital media (download, floppy, CD, ftp et al), and regardless of whether the product is complete, final, incremental, or distributed one time or recurrently through subscriptions, upgrade plans, or other business models.

End Users

“End Users”, or “Business Application Users” shall mean any party in possession of or using Licensed Subject Matter(s) with, on behalf of, or as sublicense of, the Licensee. Such End Users may include, but are not limited to, players of games, auditors of games, auction participants, financial trading participants, and so forth. All End Users must be in possession of a valid license or sublicense, containing the essential terms of the Mass Distribution License.

End User License Agreement

“End User License Agreement”, or EULA, shall mean a license issued by Licensee to an End User of a Business Application created and distributed or sold by Licensee. When an End User makes use of Licensed Subject Matter, then the End User License Agreement must contain all essential clauses of the Mass Distribution License.

Excluded transactions

“Excluded Transactions” shall mean specific transactions, not considered countable in a Metering system. Transactions that are not explicitly excluded are included. Excluded transactions are: Initial game setup; Request for (as opposed to implementation of) verification as defined within Patent Rights; Ending a game; Creation of a game setup (such as a Blackjack shoe).

Game Segment

A “Game Segment” shall mean the smallest of: a complete game (for Gaming Business Applications) , or 100 player transactions (for Gaming Business Applications). For Non-Gaming Applications, a “Segment” is equivalent to a Transaction.

Game Transactions

A “Game Transaction ” shall mean any transaction associated with game activities including but not limited to:

Posting a Player Turn with or without Acknowledgement

Creation of simultaneous transaction (i.e., “Rock-Paper-Scissors” types of games)

Verification of a simultaneous transaction

Creation of secret transaction (i.e. “Battleship” types of games)

Verification of a secret transaction

Creation of a collaborative random event to include transmittal of game seeds and nonreversible transformations

Verification of a collaborative random event to include transmittal of game seeds and nonreversible transformations

Posting a commerce transaction with or without acknowledgement

Internet Network

An “Internet Network” shall mean a network that can be used by any person with no restrictions based on geography or protocol using a standard browser, plugin, or other freely available or freely downloadable application and no other discrimination (besides the means to pay for Internet Network access)

Licensed Subject Matter

“Licensed Subject Matter” means certain proprietary technology, methods, systems, software, hardware, hosted application, know-how, intellectual property, and Patent Rights related to Licensed Subject Matter, whether issued as a product or service, where such subject matter incorporates the SecurePlay Software and SecurePlay Transactions (counted by Game Segments) supported by the SecurePlay Software.

Licensee

“Licensee” shall mean any individual, organization, corporation or other business entity holding a valid License Agreement with IT GlobalSecure or its Affiliates for Licensed Subject Matter

Licensor

“Licensor” shall mean any individual, organization, or business entity (“party”) which has a License Agreement with IT GlobalSecure, Inc or its affiliates which allows that party to sublicense the Licensed Subject Matter

Logs

Logs shall mean the recording of data contained within metering displays.

Mass Distribution License

The “Mass Distribution License” shall mean any license of the Licensed Subject Matter that is distributed from a Licensee to Licensee’s End User, where the terms of this license are encompassed within an End User License Agreement, where such licenses are Nontransferrable, and most generally employed in situations where individualized negotiations with End Users are not practical to the Licensee. The Mass Distribution License is a special form of sublicense, and may not be distributed or sublicensed by the End User.

Metering

“Metering” shall mean the act of counting the number of transactions performed within any application by all users, regardless of Transaction Jurisdiction. Metering results in a display of the transaction count in a printable format. Where such count is encrypted for privacy reasons, the decryption function shall be mutually known by Company and Licensee. Metering is enabled by the issuance of a valid registration key uniquely assigned to each User. Metering is used for computation of Running Royalties.

Net Sales

"Net Sales" shall mean the sum of the following:

(1) Licensee’s and its Affiliates' invoiced (or immediately charged or debited) price for Licensed Subject Matter, including charges for access or subscriptions to applications that include Licensed Subject Matter, less the sum of the following:

a. discounts allowed in amounts customary in the trade for quantity purchases, cash payments, prompt payments, wholesalers and

distributors;

b. sales tax, tariff duties and/or use taxes directly imposed and with reference to particular sales;

c. outbound transportation prepaid or allowed; and

d. amounts allowed or credited on returns.

(2) Licensee’s and its Affiliates' disbursements for prizes, contest rewards, or awards enabled by applications using Licensed Subject Matter less the sum of bank charges incurred to issue such disbursements to recipients

No deductions shall be made for commissions paid to individuals whether they be with independent sales agencies or regularly employed by Licensee or its Affiliates and on its payroll, or for cost of collections. Net Sales shall occur when Licensed Subject Matter shall be invoiced, or when disbursements are issued.

Patent Rights

"Patent Rights" shall mean all patent rights owned by the Company, whether in the U.S. or any foreign jurisdiction.

Private Network

A “Private Network” shall mean a network that is either highly restricted geographically (a building, corporate network, resort, linked entertainment centers) or technologically (such as a Virtual Private network (VPN), otherwise encrypted network, or via requiring access to a proprietary platform that cannot be purchased by the general public at a reasonable price) or via other discriminatory criteria or restrictive access controls.

Product Line

A “Product Line” means a set of products sold under a common title or name for a single deployment environment (See Definitions). Different version numbers or releases of a product, if published or sold under the same title for the same deployment environment, are considered within the same product line

Product Use

"Use" means storing, loading, installing, executing, or displaying the Licensed Subject Matter.

Proprietary Application

“Proprietary Applications” shall mean any software or hardware that requires a license for use, and is generally procured from a manufacturer, retail store, or reseller. Proprietary applications, if software, are generally delivered in a binary (or executable format). If hardware, such applications are generally constructed to disallow reverse engineering or replication.

Public Network

A “Public Network” shall mean a Network that is available to any member of the public with discrimination subject to broad geographic boundaries (such as a metropolitan cable provider or regional provider of wireless services) or via commercially available technological gateways (such as a consumer satellite system or set-top device).

Qualified Small Businesses

“Qualified Small Businesses” shall mean those businesses that meet at least one of the following criteria, as determined by the Company from public information regarding the Licensee in acknowledged data sources (Dun & Bradstreet, Hoovers, Standard & Poor’s, Wards’s, CorpTech, e*Trade Financial, and Lexis-Nexis printed or online reports):

Number of employees less than 10

Annual sales (including sales that are subsequently considered as deferred income for tax purposes) of under $1,000,000 per year as computed during the year prior to obtaining your SecurePlay Software license or license renewal, where such sales have an effective sale date equal to the invoice date.

Reference Implementation

“Reference Implementation”, means Source Code within the SecurePlay Software that implements SecurePlay transactions, or supports game actions, including specifically such actions as: creation of random events, creation of secret events, creation of simultaneous events, encryption of game data intended for local retention of transmittal over a network, and functions intended to confirm the integrity or correctness of data sent between players, players and host, or stored locally on disk. The Reference Implementation, as such, also means the incorporation of Licensed Subject matter into the SecurePlay Software, and its supporting documentation.

Registry

“Registry Application”, or “Registry” shall mean any software, hosted on a public or private network, that exists for the purpose of collecting the names and contact information of End Users or Licensees of Licensed Subject Matter, for the purpose of creating a networked community, forum, database, marketing center, news service, bulletin board, consortium, committee, standards body, review board, service center, complaint/dispute center, verification service, or other any such business use.

Running Royalties

Running Royalties shall mean the payments to IT GlobalSecure or its Affiliates based upon the usage of Licensed Subject Matter as measured within Metering displays and Logs.

SecurePlay Software

"SecurePlay Software" means the Source Code entitled “SECUREPLAY SOFTWARE Y.X” where Y denotes version number, and X denotes revision number) and any accompanying instructions, documentation, technical data, images, recordings, and other related materials. This SecurePlay Software includes the Reference Implementation. Licensor will furnish one copy of Reference Implementation within the SecurePlay Software, the Source Code baseline version X.Y constituting the latest code release as made available on the Developer’s Forum, and one set of Documentation (consisting of installation notes and design information) under this Agreement.

Each Revision, identified by a change in the number “X” to the right of the decimal point, shall become subject to this Agreement (i) upon acceptance by Licensor of a purchase order for the Revision, or (ii) upon shipment to Licensee of a new Revision under a separately negotiated Software Support Contract, entitling Licensee to receive such new Revisions.

SecurePlay Transaction

A “SecurePlay Transaction” shall mean the smallest measurable unit of usage of the Licensed Subject Matter (i.e. SecurePlay proprietary software, technical know-how, et al. , See Glossary of Definitions) implemented as a communications function between two processes or systems, where such systems are owned, deployed, or used by Licensee, its sublicenses, and End Users, and may be conducted within one or between two or more processing devices.

Service

A “Service” shall mean

(a) the delivery of labor hours to a customer where such labor hours are associated with designing, implementing, repairing, enhancing, or maintaining Licensed Subject Matter, hereafter called Professional Services, or

(b) the sale of rights to use a product for a specific term, such as in a pay-per-use or subscription service, with no transfer of ownership of product to the service customer, hereafter called Usage Services, or

(c) the leasing or hosting of a product for a specific term, with rights of use issued to a Business Application User (i.e., customer) , with restrictions defined within a leasing contract, with no transfer of ownership of product to the customer, hereafter called Leased (or Hosted) Services.

Source Code

Source Code for a work means the preferred form of the work for making modifications to it. For a executable work, complete Source Code means all the Source Code for all modules it contains, plus any associated interface definition files, plus the scripts used to control compilation and installation of the executable.

Sublicensee

“Licensee” shall mean any individual, organization, corporation or other business entity holding a valid License Agreement with IT GlobalSecure or its Affiliates for Licensed Subject Matter, or with IT GlobalSecure Licensee’s that possess a valid Commercial License with approval to Sublicense

Territory

“Territory” shall mean all locations in which:

Network Transactions are located, whether for personal use, development, evaluation, or commercial use (See Glossary); and,

Products developed by the Licensee are resold in accordance with Sublicensing terms cited in this Agreement

Transaction Jurisdiction

“Transaction Jurisdiction” shall mean the location of the transaction. Each transaction occurs in two or more locations at one time, specifically the location of the sender and the location of all (one or more) recipients, regardless of whether the sender and receivers are performing in a satellite or host role per the Patent Rights.



 

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Copyright 1998 - 2008. SECUREPLAY™, IT GLOBALSECURE™, PLAYNOEVIL™ and IT ARMOR™ are registered trademarks. SECUREPLAY™ technology protects against network cheating, and is available via license from IT Globalsecure at www.secureplay.com  using patented technology from QUIXOTIC SOLUTIONS, an IT GLOBALSECURE™ affiliated company. Software protected by software license, including Simple Open Source and Commercial licenses, and one or more the following U.S. and International patent numbers: U.S. Patent 6,030,288, U.S. Patent 6,165,072, European Patent Office EP1016049A1,and World Intellectual Property Organization WO9912135C1 and additional filings worldwide. IT GlobalSecure, Quixotic Solutions, and Urban Revivals LLC are affiliated companies. Proud supporter of Classical Violin in Washington DC 
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