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December 2001 Sigilo.pps
Jay Martin
Chief Executive Officer
Sigilo
Dallas, Texas
(469) 371-7208
sigilo@dimplecard.com
Sigilo - (si-jiy-lo)
Security Proposal
“Protect Anything, Anywhere
for almost Nothing”
* Patent Pending
Copyright © 2001 by Jay Martin
ROUGH DRAFT - WORKING DOCUMENT
LOOKING FOR COMMENTS
2Jay Martin October 2001 Dimple Card.ppt
Terrorist attacks have been on everyone’s mind since September, and
concern has changed attitudes and priorities regarding security.
Sigilo Priority Shifts
• High degree of paranoia regarding
personal safety - everyone thinks
they could be a target
• Fear is forcing people to think and
spend more on security
• Security concerns while traveling,
away, in public, at home and in
office are driving many behaviors
• Feelings of helplessness
• Desire to ‘take matters into their
own hands’, cannot necessarily
depend on law enforcement to
prevent attacks
• There are valid concerns, but with
many times the paranoia added
New Realities
WTC
Planes
WTC
Planes
WTC
Planes
Though there are debates on long-term impacts, there have been real,
significant perception, behavioral and consumer expenditure changes.
3Jay Martin October 2001 Dimple Card.ppt
Since September 2001, there has been substantial increase in the
demand for security and safety, for both personal and businesses.
Sigilo Quantitative Impacts
These recent changes all point towards renewed interest in this area,
which will be followed by investment and technological advances.
+50%
6 in 10
48%
5 times
1000%
+2000
$100
• Increase in gun sales in
multiple states
• Americans think they
could be terror victims
• Of Americans are less
inclined to fly
• Increase in resumes
received at the CIA
• Increase in business at a
NYC alarm firm
• New Explosive Detection
Systems for 2002
• Price of $15-30 gas mask
in New York City
36%
5,000
29%
22%
$141.0
9 - 21%
36%
• Have little faith in U.S.
airport security
• Guards Wackenhut
could use immediately
• Companies increased
security budgets
• Average amount of
their budget increases
• Million being allocated
for new Air Marshals
• Increase in FBI gun
background checks
• Will make changes in
their daily lives
Sources: Forrester, Gallup, Internet
4Jay Martin October 2001 Dimple Card.ppt
The opportunities for theft, forced entry, trespass or vandalism at a
residence are numerous even without entry being achieved.
Sigilo Outside the Residence
Street
House
Garage
Pool
Shed
Patio &
Furniture
BBQ
Xmas
Decor
Bike
Car
Roses
Flag
Mail
Access to
2nd Story
Threats - theft, entrance or damage. Two stars indicates potential for forced entry, theft or theft of contents
Util
Pet
Lawn
Decor
5Jay Martin October 2001 Dimple Card.ppt
Inside the home, even at times when you are there, you should have
concerns about theft or entry into rooms/cabinets (parties, guests).
Sigilo Inside the Residence
House
Garage
2nd Story
Access
Entry or Valuables
• Presence outside home entrances
• Opening or attempted entry through
exterior windows or doors
• Entrance or movement in garage
• Access to roof or movement on roof
• Presence inside the home
• Opening interior doors
• Movement within the house
• Opening cabinets or other (guns,
liquor, valuables, money) by kids,
guests, maids, repairmen or intruders
• Movement of furniture
• Theft of major electronics or art
• Unauthorized presence in interior
• Removal or disturbing of contents
• Entry into area, such as home office
Car
Family
Cash
Heirlooms
Guns
Jewelry
Electronics
Art and China
Information/Files
“Target Rich Environment”
Many people wish they could ‘booby-trap’
their entire home to protect their valuables.
6Jay Martin October 2001 Dimple Card.ppt
In addition, the office and locations outside the home provide for
additional risk and little chance to augment existing site protection.
Sigilo Other Locations
Office
Hotel
Room
Safe
Table
Jacket
Files
Office
SuppliesPC Phone
Map
Wallet
Keys
Briefcase
Also, in these instances your car or the rental is under the same, if not
possibly greater threats, than when parked near your home.
Other ‘At Risk’ Locations*
• Boats (docked or in storage)
• Campers & Motor homes
• Restaurants (car & coats/furs)
• Stores (car & packages)
• School lockers (contents)
• Planes
Clothes Shopping
Purchases
Watch
PC
Bed
$
Suitcase
Work
Briefcase
Expensive
Rug
Petty
Cash
Printer
Art
* Our focus is on the contents and intrusion of these, not their theft.
7Jay Martin October 2001 Dimple Card.ppt
To better represent the most prevalent threats, we will segment them
into the four categories shown below.
Sigilo Threat Segmentation
1 Invasion of property
Entering perimeter of home, office, other
site or car (includes trespassing, desire to
review private documents, casing)
2 Damage to property
Vandalism of property, initial facilitation
of a burglary or testing of defenses/
disabling protection (phone/lock/alarm)
3 Theft/Removal of Property
Removal or disturbance of belongings at
home, office, hotel room, in public or car.
4 Threats against individuals
Individual is at risk and is unable to use
normal phone or scream to alert of an
assault, hijacking, robbery, or accident.
Person
Property
4
2,32
11
Property
Person
4
2,3
Interior
Structure Exterior
Trespass
Vandalism
Vandalism
or Theft
Assault
8Jay Martin October 2001 Dimple Card.ppt
Existing security systems leave many areas for improvement in future
developments, which also opens up opportunities for new technology.
Sigilo Weaknesses of Existing Systems
• Expensive to install, maintain and contract a service
• Needs for installation and modification to home
• Usually requires Monthly Fee from a local security company to monitor it
• Centralized control from ‘location’ (pad, center) inside residence
• Dependant on local power or telephone
• Maintenance, need service
• Lack portability, once installed, remain on premise regardless of owner
• Bulkiness
• False alarms - some wake entire neighborhood
• Intrusion perimeter and motion focused
• Permits from local police required in many cities and towns
• Focused on scaring, not identifying threat type and location
• Radio equipment can monitor, sometimes disturb, response and signals
• Most do not have a way to alert you while away from home or not near car
Every year people think of ways to eliminate some of these, and
technology continues to push down the overall costs.
9Jay Martin October 2001 Dimple Card.ppt
In technology, people are normally looking forward, not backwards;
their objectives are making ‘breakthroughs’ and attracting attention.
Sigilo Focus of Technology Efforts
• Applying the new to the old, not solving the problem considering the new
• Specific objectives are usually for better, faster and cheaper, and focus is
on existing products or an obvious/predictable next generation
• Desire to find the ‘new-new thing’, look over the ‘simple & obvious’
• Applying to low-tech has more or less been ignored - it’s boring
• Many recent efforts were ‘what we can do to get into the internet boom.’
• Currently ‘paper electronics’ is being focused on cell phones, PDAs, and
computers - not new devices, just cheaper & smaller versions of the old
A recent development is paper electronics - laying circuits on a mylar-
like material. It is low cost, flexible, easily packaged and disposable.
We have a new idea - not technically exciting, but immense with
respect to its marketability, applications and profit potential.
10Jay Martin October 2001 Dimple Card.ppt
Taking a new ‘disposable’ cellular phone, we first eliminate all user
interfaces - reducing cost, size, shape restrictions, rigidity, & weight.
Sigilo Eliminate Components (all user interfaces and support)
Not Required
User Interfaces
• Speaker
• Speaker port
• Microphone
• Dialing pad
• Other ‘buttons’
Support/Other Components
• Dialing support mechanism
• Voice processing & support
• Other ‘buttons’ support
• Battery to support voice traffic
We are left with a product which can send signals but has no way to
dial/select a number, no message to transmit, no input device, nothing
to display/receive a message and no power source; but…….
Source: Diceland Technology’s website and information on Randice-Lisa Altschul,
Patents 6,144,847, 5,965,848, 5,875,393 and others.
11Jay Martin October 2001 Dimple Card.ppt
….it is very inexpensive, light, flexible and much smaller. Now we add
some components to create what we will call, the ‘Relay Device’.
Sigilo Adding Components
• Smaller & more flexible
• Volume of close to or less
than that of 2 credit cards
• Negligible weight added
• Many shapes permissible
• Input/trigger port for signal
• Preprogrammed number and
message/code are added
• Balanced power-weight-cost
• Cost close to $1 each
To Be Added
• Input port for a connector
• Small memory storage
• Indicator for operational status
• Phone number & code(s) (S/N) need to be
pre-programmed into a small memory
• Power Indicator confirming power available
• Long lasting small disposable battery
Optional features listed below
• Security or lock for activation
• On/Off indicator
• Cleat to wind connectors
• Extendable antenna (wire)
• Attachments to other surfaces
Now we have pre-programmed a number & message, an input port
and the right power source - but still no trigger to make a call!
+
The Results
12Jay Martin October 2001 Dimple Card.ppt
Sensors exist to detect and measure just about every stimulus
imaginable, and their applications extend beyond security/safety.
Sigilo Sensors
They vary in complexity, size, cost and sophistication. Many of them
are based on very simple electro-mechanical devices.
Chemical Presence (Poisons, Explosives)
Electric Power (loss, surge, usage)
Fluid Levels
Flow Levels or Speeds
Fractures & Gap Propagation
Gas Concentrations (C0, C02..)
Intrusion
Light Levels
Metal Presence
Movement & Proximity
Noise Sensor & Acoustics
pH Levels
Pressure (pads, vessels, pipes)
Radiation
Shock (shock waves)
Smoke or Air Purity
Temperature (heat, freeze, changes, readings)
Trip Wires
Vibration
Weather
13Jay Martin October 2001 Dimple Card.ppt
Sensors can be complex, but for many security needs they are simple
devices to permit or impede electric circuits - indicating a stimulus.
Sigilo Simple Sensor Examples & How They Work
Using these types of concepts, we can create a simple input device for
our input port. This provides the trigger to send the outbound call.
Pressure
This type of sensor operates by having a circuit
which is Normally Open with two opposing pads
position to close it. A given ‘pressure’ stimulus
pushes down the ‘ends’ and permits a current,
which can then activate a signal.*
Vibration
A Normally Closed (‘NC’) circuit is created with two
metal planes and a sphere in a ‘V’ shape. If there
is a vibration disturbance, the sphere rises and
breaks contact with either of the two planes and the
circuit is broken, thus detecting the vibration.
Lights Sensors
This type of sensor operate by having a circuit
which is Normally Open. A Light sensitive device
passes a signal if it receives a stimulus of sufficient
magnitude. The signal could permit or impede a
circuit, or convert the light into energy and act as
the signal itself.
Intrusion & Trip Wire
This Normally Open (‘NO’) circuit has a feature
which completes the circuit when an element is
‘pulled’ (could be Normally Closed also). There are
many ways to apply the same basic principal, and
below is an example where the circuit is not
completed until the small part is ‘pulled’ through.
Current
Vibration
* Another option - single wire and a piezoelectric which would send a small charge after pressure was applied.
14Jay Martin October 2001 Dimple Card.ppt
Now we have a trigger, from a Sensor to detect a desired stimulus, and
the outbound call - the last and key component is the Control System
Sigilo Control System - Final Major Component
Relay
Actuation
Device(s)
Output
Contact Mode(s)
Telephone
Email
PDA
Instant messaging
Beeper/Pager
Radio
Other
Recipient(s)
User
Neighbors
Co-workers
Police
Security Company
Fire Department
Other
User action
required
This refers to a host of devices in the field who are either
attached to security enhancements (horns, sirens, lights…)
which can also be commanded to be activated upon the
occurrence of a stimulus or manual request by the User.
Control
System
OutboundCall
Relay
Device(s)
Enter data via
internet/phone
• Who(m)
(Recipient(s))
• Mode (phone
number, email)
• What alert is
(message in text
or voicemail to
be played to
Recipient after
an alert)
Mixing & Multiple Contacts Permitted
* User completes these tasks after purchase and before arming. Example: Enters text messages or records voicemails
and destinations he wants for each one. He can monitor all of his and decide whether he wants to notify Police.
User Input
15Jay Martin October 2001 Dimple Card.ppt
To better clarify our proposal, we will answer some additional issues
that we believe may not have been adequately explained.
Sigilo Additional Information
Question Explanation
What are the sensors and the
connectors going to look like?
Our intent is to have universal standard sensor connections, with small,
inexpensive, consumable sensors whose cost is to be minimal.
How will one arm or disarm these?
There can be a manual switch on the Relay Device, and we also
envision a remote control type device which uses the Control System to
turn them on and off, and which also can be used to group into ‘arrays’.
How will a user input his information
or create an ‘array’ of these devices?
Product to have serial number and activation codes, permit user to call
in response information, enter on internet or mail in. Can create and
manage his arrays and allocate remotes to them as he sees fit.
How can you stop intruders if not
always using a security company?
Expect for home use one of the responses is to call the house phone to
scare intruders, as well as contacting neighbors. Security companies
will be an option, but not the only option (already introduced by others).
How can these devices be used in
unison to best prevent burglaries?
User can create a logic structure that changes his response (example: if
exterior alarm is tripped, then interior, contact security company. If only
exterior is tripped, alert user then wait an hour and watch for others)
Why is lower cost so important - more
expensive usually means superior?
Devices can be deployed, activated, used, deactivated and abandoned
(low cost makes this viable option if chosen). Consumable & portable.
How will they be sold?
We imagine a number of versions, some with pre-paid alerts, others
where you will register to Control System and be charged if used. The
goal is to move away from monthly security service payments - pay/use.
What if I want to call the Police?
Control System serves as a buffer between user and police, patent
covers the ‘direct to police’ alert option, but onus is left on user to decide
to call. You can monitor and call if you like, but not automatic.
How will Sigilo reduce
‘False Alarms’?
You could still request to be contacted or have option to cancel if there
is a False Alarm, and could also have any type of response requested
or have Control System’s managers take appropriate action as needed.
16Jay Martin October 2001 Dimple Card.ppt
This is Sigilo, which over time will get both smaller & less expensive. It
will enable protection of almost anything, anywhere for a few dollars.
Sigilo The Entire System
Relay
Device
Recipient(s)
Stimulus
Sensor
(Wireless)
Communications
Infrastructure
Relay
Actuation
Device
Stimulus occurs
Sensor mechanism closes or opens circuit
Impulse through Connector to Relay Device
Impulse activates Outbound call
Outbound call connects and passes message
Outbound Call matched to user’s request
Outgoing messages sent to Recipients
Relay Actuation Devices in field triggered
1
1
7
2
3
4
5
6
8
Its cost, ease of installation and flexibility will make it a ubiquitous
option for use by the general public, business and the government.
2 3 4
5
Control
System
6
8
7
Remote Control for
individual or an array of
Relay Devices can be used
to control all of the units
deployed at a single site and
that can be activated or
deactivated with a single
touch of a button.
* Note: Estimate of $1 cost was extrapolated from public statements and material costs given expected production quantities.
17Jay Martin October 2001 Dimple Card.ppt
The Relay Devices will be made into different shapes depending on the
application and needs for concealment by the users. Some examples:
Sigilo Device Shape - Multiple Options for Multiple Applications
Very flat will permit them to be hidden underneath rugs, mats,
beneath TVs/VCRs (or other electronics or valuables), hide along
sides of furniture so as to reduce the chance that it will be identified
by an intruder. This configuration is expected to be very popular.
These could be made to appear like small disks (ant traps, …) or
other objects, but also would reduce the total surface size as
compared to flat so as to be hidden in small spaces. Features such
as sticky backs, Velcro and nail slots could be added to facilitate
securing on sides/backs of furniture or other objects nearby.
Small small cubes (theoretically this would be the shape that if the
goal was to limit every dimension to its minimum within a permitted
volume), would have the highest yield, but both manufacturing issues
and questions of its utility for this application bring it into doubt.
Some application may find this configuration most beneficial.
The objective here would be to have it appear like a pencil or pen, or
like a common wire. The picture depicts what is thought to be a
‘mine’ type pressure device for deployment on/in the ground for
intrusion detection. New manufacturing techniques regarding
lithography on mylar for electrical components make this a possibility.
To better support the ‘hidden’ feature of this component, it is possible
that we may find different common objects to locate it inside of.
Some examples of this are rocks or garden objects, jewelry, pencils &
notepads, plugs, Mezuzahs and money (rolls or stacks of bills).
Sensor
Relay Device
Flat & as
thin as
possible
Small
cylinders
or disks
Small
cube or
polygon
Thin
cylinder or
wire/tube
Disguised
as small
objects
18Jay Martin October 2001 Dimple Card.ppt
The benefits for the user will make this the dominant choice in security,
and will also have additional benefits for other groups and society.
Sigilo Benefits and Beneficiaries
 Reduced cost to purchase, install, and maintain
 Unchallenged versatility in:
 Deployment and applications/uses
 Sensing (for safety & research)
 Alerting (parties & methods)
 Increase scope, can protect individual objects
 Elimination of central arming station & pad
 Low maintenance
 Permits affordable security in remote locations
 Will support almost any type of sensor
 Portable, can be moved or reused
 Not dependent on local power or phone lines
 Harder to disrupt or render ‘disarmed’
 Flexible in response – calling ‘police/security’ not
only option, will reduce costs
 More easily hidden/concealed, not bulky
 Easier to set-up, can be done by user
 Monitoring company payment not required
 Physical modifications to home/site not required
 Decentralized detection
 Object protection for non-intruders (maids, kids)
 Disposable or can be deployed and forgotten
 Increased need for services
 Reduced barriers for purchasing alarm systems
 Less maintenance
 More accurate information from alarms
 User responsible for more, less confusion
 Higher utilization of patrols and security officers
 Provides income to police and law enforcement if
they choose to ‘require’ registration
 Reduced alarms calling Police
 Better information from alarms and 911 callers
 Ability to ‘patrol’ remote and rural sites
 Ability to eliminate/reduce patrol routines
 Reduction in crime
 Absorbs excess cellular capacity
 Reduction in insurance losses/premiums
 Reduced research and monitoring expenses
 Reduced false alarms & their impacts
Users Security Industry
Law Enforcement
Society
19Jay Martin October 2001 Dimple Card.ppt
We intend to produce, distribute for sale and support these devices in
the field (via the Control System). Multiple revenue opportunities exist.
Sigilo Our Business
 Submit newer versions of
Patent to include more details
 Seal up Intellectual Property
Rights for our Patents
 Identify and resolve all potential
infringement issues on other
Patents or Licenses required
 License or Partner with those of
significant contribution to Sigilo
 Confirm through Due Diligence
viability of Sigilo and market
 Develop the Control System
 Build or Contract Manufacturing
 Coordinate Alarm Companies,
Cellular Phone Providers and
Law Enforcement
Activities Required
 Make and sell field components
 Charge ‘by use’ for alerts and
communications
 Could charge to ‘register’ or
‘activate’ a device
 License ‘response’ charges to
Security Companies and Law
Enforcement, obtain a
percentage for administrative
 Contract manufacture devices
for large purchasers, such as
Government Agencies and
Security Companies wanting to
set-up proprietary Control
Systems
 Sell ‘Trademark’ signs for display
with devices to ward off intruders
 License or partner overseas
Sources of Revenue
20Jay Martin October 2001 Dimple Card.ppt
Below are four examples showing its versatility, reach and power.
Sigilo Market Analysis and Revenue Potential
Home valuables
(intruder, guests,
children or maids)
Application Response requestedSensor type
Trip wire or
pressure
beneath the
object or
attached
For this application, you can have
yourself be the recipient via cell phone
or pager, and regardless of whether
you are home or not, any disturbance
of this by anyone will be identified.
Park or
Monument
(intrusion or
vandalism)
‘Mine’ pressure
sensors,
vibration or trip
wires near
gates or doors.
For parks, they could be deployed in
areas known for intruders or where
concerns of vandalism or theft are
prevalent. Pager messages to police
regarding alert and site could be input.
Office valuables
(wallet, keys,
lap-tops, petty
cash or other)
Trip wire or
pressure pad
beneath or
attached to
object
The object could be set on sensor
which would trigger if it was lifted up or
have a trip wire if pulled away. The
response could be an instant message
to rest of the office to go to your desk.
Cabin*
(intrusion, forced
entry or
vandalism)
Vibration or trip
wire on door,
pressure pads
on mats outside
and inside
With this set-up, you would know when
someone was at the door, trying to
open it (shaking knob) and then if they
gained entry. You, neighbors (of cabin)
& local police could be contacts.
* Outside normal cellular area, if application justified increased cost, satellite networks can be used.
21Jay Martin October 2001 Dimple Card.ppt
The applications are almost limitless. It will both replace expensive
competition and provide security where high costs had prevented it.
Sigilo Market Analysis and Revenue Potential
There are places this is not effective - underground & submarines. Even at sites
which have sophisticated security, Sigilo can serve as an inexpensive back-up.
Hotel Rooms
Portable
belongings
Remote
structures
Apartments
Cars
Planes
Boats
Parks and
monuments
Houses
Animal Traps
Cemeteries
Golf Courses
Construction
Sites
Schools
Enclosed
Property
Lockers/
Storage
Office
Buildings
Pools & other
Recreation Centers
22Jay Martin October 2001 Dimple Card.ppt
The market and needs are best shown by the relevant statistics.
Sigilo Market Analysis and Revenue Potential
• 2.43 Million burglaries in 1997 in United States
• 13.4% of burglary cases solved nationwide
• Homes without alarms 2.2 times more likely to be broken into
• $11.5 Billion in property was burglarized in 1997
• Average loss nationwide is $1381
• $100 Billion yearly spent on security, 30 for IT
• $19 Billion spent last year on residential and commercial alarm systems
• 3 Million new systems installed, bring U.S. total to around $30.1 Million
• $1200 spent on average installation, $27 monthly fee average
• 20% of homes are estimated to have systems - 80% do not
• Approximately 12-16,000 companies involved in the alarm business
• Products are very price sensitive, most people would like them regardless
of real need just for the peace of mind and security.
Using simple estimates, multiply expected United States market by
2 or 3 to arrive at the total potential for Sigilo throughout the world.
Sources: Security Sales Magazine Factbook, NBFAA, Internet
23Jay Martin October 2001 Dimple Card.ppt
Our proposal has both Strengths and Weaknesses, but we feel that the
choice becomes obvious when their impacts/potential are compared.
Sigilo Strengths and Weaknesses
 Costs of everything, from equipment, to
installation to maintenance
 User control
 Increased applications
 Harder to identify and defeat
 Power of responses
 Different modes and people
 Multiple responses
 Better information
 Security without a service to wake
entire neighborhood
 Simplicity of sensors
 Non-security applications
Strengths
 If Relay Device is found before sensor,
signal could be blocked
 Users have to set it up, more likely to make
mistakes and need support
 Cellular infrastructure is required, if not,
need to go to satellites
 Delay in picking up line of a second or two
 Simplicity of sensors
Weaknesses
24Jay Martin October 2001 Dimple Card.ppt
Competitive Products and Service are very high cost to obtain, install
and have monitored. Less expensive items are sensor-based sirens.
Sigilo Competitive Options
Alarm
Systems
Requiring
Installation
Services
Available or
Required
‘Do It Yourself’
Retailed Sold
Security
Options
•Average installation in United States costs $1200
•Low price ones ($100-300) required 3 year service
•Primarily perimeter and motion detector focused
•Door/window contacts cost $75-125 each
•Monthly monitoring fees, average is $27
•Some charges for Monitoring, Alarms & Re-setting
•Installation of back-ups can run $100-1000
•Many companies require multi-year contracts
•Sold by very few retailers (Lowe’s, Radio Shack)
•Comprehensive systems are $200-400 range
•Inexpensive ‘stand-alone’s (siren based) are $8-40
and utilize circuit breaks or motion sensors
•Most systems are easy to defeat or disable
Sources: APB News, Sigilo Research
25Jay Martin October 2001 Dimple Card.ppt
When comparing Sigilo to exiting options, we see begin to understand
it could open the ‘flood gates’ of inexpensive security expenditures.
Sigilo Competitive Assessment
Attribute SigiloExisting
Cost(s) Lower in all aspects
More expensive equipment,
install and monitoring fee
Ease of install
Far simpler, but
user’s responsibility
Complicated/costly
Detection abilities
(function of sensors)
Basic, but more accurate
than motion-based systems
More cost buys better
detection
Ease of use (arm/disarming)
One button or call,
computerized coding
Code entering requiring user
to remember, could forget
Difficulty of defeat
Usually too late,
independent devices
Intruder is looking for it,
known centralized systems
Breadth of responses Can be sameCan be same
Risk of false alarms
Same, but
mitigated
Same
Applications
Versatile, can use
where never before
Installed to fixed points,
most systems focused
We believe our option is better and less expensive, though large
monthly fees paid to security companies provide some value.
Tie
Tie
Tie
Tie
26Jay Martin October 2001 Dimple Card.ppt
Consumer
Acceptance
Our proposal has a variety of risks, and to better communicate them,
we will present them in terms of the five categories below.
Sigilo Major Risk Areas
OperationsPriceFabrication
Intellectual
Property
Issues
A1) Do not get a any
patent at all
A2) IP is not strong
enough for
protection
A3) Licensing other
Patents becomes
too expensive to
continue or
impossible task of
getting all to agree
A4) Someone patents
around it
A5) Refusal of
licensing
A6) Someone already
has filed for same
idea
B1) Cannot
produce them
B2) Too costly to
produce
B3) Cannot get
them to work
B4) Quality issues
C1) Less expensive
alternative is
found
C2) Costs are much
higher than
anticipated
(related to B2)
D1) Do not
function
adequately in
field
D2) Cause too
many
problems, like
false alarms
D3) Can be
disabled or
interfered with
too easily
D4) Police, FCC
or Cell Phone
Companies
stop proposal
E1) Customers
are not
interested in
them
E2) Market is too
small to justify
investment
E3) Consumers
do not like the
‘do-it-yourself’
work involved
E4) Better options
introduced
A B C D E
27Jay Martin October 2001 Dimple Card.ppt
There are seven risks that concern us most, and they will be better
understood or resolved during the early stages of this project.
Sigilo Detailed Risk Assessment
AnalysisNumber ProbabilityRisk
Using the ‘new, useful and not obvious’ rule, we expect
to get a patent on at least a part. We do not
underestimate the IP coordination challenges of this.
A1 Low/Medium
Do not get any
patent at all
To execute this, one needs to be able to license or
partner with Prior Art holders in Manufacturing, the
Physical Devices and Operations - a lot of work ahead.
A3 Medium/High
Licensing too
expensive or lack of
agreements
It is possible that a key patent or technology holder
could ‘block’ this proposal, just to prevent it or do it
themselves. They would have to settle/fight us also.
A5 MediumRefusal of licensing
We will find this out the hard way, but Diceland
Technologies will be the enabler. They are the key to
this venture, and will be able to ‘refuse’ any partner.
A6 Medium
Someone already has
filed for same idea
With the advent of new technology, areas such as
MEMs and Nanotechnology will open up many new
options. Patent covers these, but remains worrisome.
C1 High
Less expensive
alternative is found
User errors in both setting up and in operation is
expected to cause difficulties, but the move to
‘physical’, and not motion sensors should mitigate this.
D2 Low/Medium
Cause too many
problems, like false
alarms
We expect this will be a market issue. Many people
will prefer the control and ability to take actions
themselves a lower cost. Worst case, smaller market.
E3 Low
Consumers do not like
the ‘do-it-yourself’
work involved
28Jay Martin October 2001 Dimple Card.ppt
One can use the chart below to calculate expected yearly revenue and
profits just from unit sales. This excludes ‘alerts’ & licensing revenue.
Sigilo Revenue and Profit
25
Though we are not at the stage to present realistic expectations, we
believe that we can exceed $3 Billion in revenue within a 5 year period.
75 100 150 200 300 400 500 750 1,000 1,500 2,000$
100 300 400 600 800 1,200 1,600 2,000 3,000 4,000 6,000 8,000
943.75 281 375 563 750 1,125 1,500 1,875 2,813 3,750 5,625 7,500
883.50 263 350 525 700 1,050 1,400 1,750 2,625 3,500 5,250 7,000
813.25 244 325 488 650 975 1,300 1,625 2,438 3,250 4,875 6,500
4.00
Units (Millions)
753.00 225 300 450 600 900 1,200 1,500 2,250 3,000 4,500 6,000
692.75 206 275 413 550 825 1,100 1,375 2,063 2,750 4,125 5,500
632.50 188 250 375 500 750 1,000 1,250 1,875 2,500 3,750 5,000
562.25 169 225 338 450 675 900 1,125 1,688 2,250 3,375 4,500
50 150 200 300 400 600 800 1,000 1,500 2,000 3,000 4,000
441.75 131 175 263 350 525 700 875 1,313 1,750 2,625 3,500
381.50 113 150 225 300 450 600 750 1,125 1,500 2,250 3,000
311.25 94 125 188 250 375 500 625 938 1,250 1,875 2,500
2.00
251.00 75 100 150 200 300 400 500 750 1,000 1,500 2,000
20.80 60 80 120 160 240 320 400 600 800 1,200 1,600
15.60 45 60 90 120 180 240 300 450 600 900 1,200
10.40 30 40 60 80 120 160 200 300 400 600 800
29Jay Martin October 2001 Dimple Card.ppt
Currently we are pursuing this as a Due Diligence to best determine
viability. Its complexity and immense potential warrant resources.
Sigilo Closing
• The Patent author Jay Martin (Edward J. Martin, Jr.) is the only person
working on this full-time.
• Schief & Stone will most likely lead Patent and Licensing efforts. Much
additional legal work will be required, particularly at the front-end.
• In addition to understanding other patents, we also require assistance in
improving the patent which has already been filed.
• Sigilo is a placeholder name, and we are pursuing more attractive ones
which have been Trademarked. Can easily create a new name also.
• Our interim objective is to speak to Diceland or its patent holders
regarding our options. Their technology will be of great help.
We are searching for resource partners, and prefer to find ones who
could, if this warrants, provide multiple rounds of funding.

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Sigilo - Cellular Transmitter For Property Security

  • 1. December 2001 Sigilo.pps Jay Martin Chief Executive Officer Sigilo Dallas, Texas (469) 371-7208 sigilo@dimplecard.com Sigilo - (si-jiy-lo) Security Proposal “Protect Anything, Anywhere for almost Nothing” * Patent Pending Copyright © 2001 by Jay Martin ROUGH DRAFT - WORKING DOCUMENT LOOKING FOR COMMENTS
  • 2. 2Jay Martin October 2001 Dimple Card.ppt Terrorist attacks have been on everyone’s mind since September, and concern has changed attitudes and priorities regarding security. Sigilo Priority Shifts • High degree of paranoia regarding personal safety - everyone thinks they could be a target • Fear is forcing people to think and spend more on security • Security concerns while traveling, away, in public, at home and in office are driving many behaviors • Feelings of helplessness • Desire to ‘take matters into their own hands’, cannot necessarily depend on law enforcement to prevent attacks • There are valid concerns, but with many times the paranoia added New Realities WTC Planes WTC Planes WTC Planes Though there are debates on long-term impacts, there have been real, significant perception, behavioral and consumer expenditure changes.
  • 3. 3Jay Martin October 2001 Dimple Card.ppt Since September 2001, there has been substantial increase in the demand for security and safety, for both personal and businesses. Sigilo Quantitative Impacts These recent changes all point towards renewed interest in this area, which will be followed by investment and technological advances. +50% 6 in 10 48% 5 times 1000% +2000 $100 • Increase in gun sales in multiple states • Americans think they could be terror victims • Of Americans are less inclined to fly • Increase in resumes received at the CIA • Increase in business at a NYC alarm firm • New Explosive Detection Systems for 2002 • Price of $15-30 gas mask in New York City 36% 5,000 29% 22% $141.0 9 - 21% 36% • Have little faith in U.S. airport security • Guards Wackenhut could use immediately • Companies increased security budgets • Average amount of their budget increases • Million being allocated for new Air Marshals • Increase in FBI gun background checks • Will make changes in their daily lives Sources: Forrester, Gallup, Internet
  • 4. 4Jay Martin October 2001 Dimple Card.ppt The opportunities for theft, forced entry, trespass or vandalism at a residence are numerous even without entry being achieved. Sigilo Outside the Residence Street House Garage Pool Shed Patio & Furniture BBQ Xmas Decor Bike Car Roses Flag Mail Access to 2nd Story Threats - theft, entrance or damage. Two stars indicates potential for forced entry, theft or theft of contents Util Pet Lawn Decor
  • 5. 5Jay Martin October 2001 Dimple Card.ppt Inside the home, even at times when you are there, you should have concerns about theft or entry into rooms/cabinets (parties, guests). Sigilo Inside the Residence House Garage 2nd Story Access Entry or Valuables • Presence outside home entrances • Opening or attempted entry through exterior windows or doors • Entrance or movement in garage • Access to roof or movement on roof • Presence inside the home • Opening interior doors • Movement within the house • Opening cabinets or other (guns, liquor, valuables, money) by kids, guests, maids, repairmen or intruders • Movement of furniture • Theft of major electronics or art • Unauthorized presence in interior • Removal or disturbing of contents • Entry into area, such as home office Car Family Cash Heirlooms Guns Jewelry Electronics Art and China Information/Files “Target Rich Environment” Many people wish they could ‘booby-trap’ their entire home to protect their valuables.
  • 6. 6Jay Martin October 2001 Dimple Card.ppt In addition, the office and locations outside the home provide for additional risk and little chance to augment existing site protection. Sigilo Other Locations Office Hotel Room Safe Table Jacket Files Office SuppliesPC Phone Map Wallet Keys Briefcase Also, in these instances your car or the rental is under the same, if not possibly greater threats, than when parked near your home. Other ‘At Risk’ Locations* • Boats (docked or in storage) • Campers & Motor homes • Restaurants (car & coats/furs) • Stores (car & packages) • School lockers (contents) • Planes Clothes Shopping Purchases Watch PC Bed $ Suitcase Work Briefcase Expensive Rug Petty Cash Printer Art * Our focus is on the contents and intrusion of these, not their theft.
  • 7. 7Jay Martin October 2001 Dimple Card.ppt To better represent the most prevalent threats, we will segment them into the four categories shown below. Sigilo Threat Segmentation 1 Invasion of property Entering perimeter of home, office, other site or car (includes trespassing, desire to review private documents, casing) 2 Damage to property Vandalism of property, initial facilitation of a burglary or testing of defenses/ disabling protection (phone/lock/alarm) 3 Theft/Removal of Property Removal or disturbance of belongings at home, office, hotel room, in public or car. 4 Threats against individuals Individual is at risk and is unable to use normal phone or scream to alert of an assault, hijacking, robbery, or accident. Person Property 4 2,32 11 Property Person 4 2,3 Interior Structure Exterior Trespass Vandalism Vandalism or Theft Assault
  • 8. 8Jay Martin October 2001 Dimple Card.ppt Existing security systems leave many areas for improvement in future developments, which also opens up opportunities for new technology. Sigilo Weaknesses of Existing Systems • Expensive to install, maintain and contract a service • Needs for installation and modification to home • Usually requires Monthly Fee from a local security company to monitor it • Centralized control from ‘location’ (pad, center) inside residence • Dependant on local power or telephone • Maintenance, need service • Lack portability, once installed, remain on premise regardless of owner • Bulkiness • False alarms - some wake entire neighborhood • Intrusion perimeter and motion focused • Permits from local police required in many cities and towns • Focused on scaring, not identifying threat type and location • Radio equipment can monitor, sometimes disturb, response and signals • Most do not have a way to alert you while away from home or not near car Every year people think of ways to eliminate some of these, and technology continues to push down the overall costs.
  • 9. 9Jay Martin October 2001 Dimple Card.ppt In technology, people are normally looking forward, not backwards; their objectives are making ‘breakthroughs’ and attracting attention. Sigilo Focus of Technology Efforts • Applying the new to the old, not solving the problem considering the new • Specific objectives are usually for better, faster and cheaper, and focus is on existing products or an obvious/predictable next generation • Desire to find the ‘new-new thing’, look over the ‘simple & obvious’ • Applying to low-tech has more or less been ignored - it’s boring • Many recent efforts were ‘what we can do to get into the internet boom.’ • Currently ‘paper electronics’ is being focused on cell phones, PDAs, and computers - not new devices, just cheaper & smaller versions of the old A recent development is paper electronics - laying circuits on a mylar- like material. It is low cost, flexible, easily packaged and disposable. We have a new idea - not technically exciting, but immense with respect to its marketability, applications and profit potential.
  • 10. 10Jay Martin October 2001 Dimple Card.ppt Taking a new ‘disposable’ cellular phone, we first eliminate all user interfaces - reducing cost, size, shape restrictions, rigidity, & weight. Sigilo Eliminate Components (all user interfaces and support) Not Required User Interfaces • Speaker • Speaker port • Microphone • Dialing pad • Other ‘buttons’ Support/Other Components • Dialing support mechanism • Voice processing & support • Other ‘buttons’ support • Battery to support voice traffic We are left with a product which can send signals but has no way to dial/select a number, no message to transmit, no input device, nothing to display/receive a message and no power source; but……. Source: Diceland Technology’s website and information on Randice-Lisa Altschul, Patents 6,144,847, 5,965,848, 5,875,393 and others.
  • 11. 11Jay Martin October 2001 Dimple Card.ppt ….it is very inexpensive, light, flexible and much smaller. Now we add some components to create what we will call, the ‘Relay Device’. Sigilo Adding Components • Smaller & more flexible • Volume of close to or less than that of 2 credit cards • Negligible weight added • Many shapes permissible • Input/trigger port for signal • Preprogrammed number and message/code are added • Balanced power-weight-cost • Cost close to $1 each To Be Added • Input port for a connector • Small memory storage • Indicator for operational status • Phone number & code(s) (S/N) need to be pre-programmed into a small memory • Power Indicator confirming power available • Long lasting small disposable battery Optional features listed below • Security or lock for activation • On/Off indicator • Cleat to wind connectors • Extendable antenna (wire) • Attachments to other surfaces Now we have pre-programmed a number & message, an input port and the right power source - but still no trigger to make a call! + The Results
  • 12. 12Jay Martin October 2001 Dimple Card.ppt Sensors exist to detect and measure just about every stimulus imaginable, and their applications extend beyond security/safety. Sigilo Sensors They vary in complexity, size, cost and sophistication. Many of them are based on very simple electro-mechanical devices. Chemical Presence (Poisons, Explosives) Electric Power (loss, surge, usage) Fluid Levels Flow Levels or Speeds Fractures & Gap Propagation Gas Concentrations (C0, C02..) Intrusion Light Levels Metal Presence Movement & Proximity Noise Sensor & Acoustics pH Levels Pressure (pads, vessels, pipes) Radiation Shock (shock waves) Smoke or Air Purity Temperature (heat, freeze, changes, readings) Trip Wires Vibration Weather
  • 13. 13Jay Martin October 2001 Dimple Card.ppt Sensors can be complex, but for many security needs they are simple devices to permit or impede electric circuits - indicating a stimulus. Sigilo Simple Sensor Examples & How They Work Using these types of concepts, we can create a simple input device for our input port. This provides the trigger to send the outbound call. Pressure This type of sensor operates by having a circuit which is Normally Open with two opposing pads position to close it. A given ‘pressure’ stimulus pushes down the ‘ends’ and permits a current, which can then activate a signal.* Vibration A Normally Closed (‘NC’) circuit is created with two metal planes and a sphere in a ‘V’ shape. If there is a vibration disturbance, the sphere rises and breaks contact with either of the two planes and the circuit is broken, thus detecting the vibration. Lights Sensors This type of sensor operate by having a circuit which is Normally Open. A Light sensitive device passes a signal if it receives a stimulus of sufficient magnitude. The signal could permit or impede a circuit, or convert the light into energy and act as the signal itself. Intrusion & Trip Wire This Normally Open (‘NO’) circuit has a feature which completes the circuit when an element is ‘pulled’ (could be Normally Closed also). There are many ways to apply the same basic principal, and below is an example where the circuit is not completed until the small part is ‘pulled’ through. Current Vibration * Another option - single wire and a piezoelectric which would send a small charge after pressure was applied.
  • 14. 14Jay Martin October 2001 Dimple Card.ppt Now we have a trigger, from a Sensor to detect a desired stimulus, and the outbound call - the last and key component is the Control System Sigilo Control System - Final Major Component Relay Actuation Device(s) Output Contact Mode(s) Telephone Email PDA Instant messaging Beeper/Pager Radio Other Recipient(s) User Neighbors Co-workers Police Security Company Fire Department Other User action required This refers to a host of devices in the field who are either attached to security enhancements (horns, sirens, lights…) which can also be commanded to be activated upon the occurrence of a stimulus or manual request by the User. Control System OutboundCall Relay Device(s) Enter data via internet/phone • Who(m) (Recipient(s)) • Mode (phone number, email) • What alert is (message in text or voicemail to be played to Recipient after an alert) Mixing & Multiple Contacts Permitted * User completes these tasks after purchase and before arming. Example: Enters text messages or records voicemails and destinations he wants for each one. He can monitor all of his and decide whether he wants to notify Police. User Input
  • 15. 15Jay Martin October 2001 Dimple Card.ppt To better clarify our proposal, we will answer some additional issues that we believe may not have been adequately explained. Sigilo Additional Information Question Explanation What are the sensors and the connectors going to look like? Our intent is to have universal standard sensor connections, with small, inexpensive, consumable sensors whose cost is to be minimal. How will one arm or disarm these? There can be a manual switch on the Relay Device, and we also envision a remote control type device which uses the Control System to turn them on and off, and which also can be used to group into ‘arrays’. How will a user input his information or create an ‘array’ of these devices? Product to have serial number and activation codes, permit user to call in response information, enter on internet or mail in. Can create and manage his arrays and allocate remotes to them as he sees fit. How can you stop intruders if not always using a security company? Expect for home use one of the responses is to call the house phone to scare intruders, as well as contacting neighbors. Security companies will be an option, but not the only option (already introduced by others). How can these devices be used in unison to best prevent burglaries? User can create a logic structure that changes his response (example: if exterior alarm is tripped, then interior, contact security company. If only exterior is tripped, alert user then wait an hour and watch for others) Why is lower cost so important - more expensive usually means superior? Devices can be deployed, activated, used, deactivated and abandoned (low cost makes this viable option if chosen). Consumable & portable. How will they be sold? We imagine a number of versions, some with pre-paid alerts, others where you will register to Control System and be charged if used. The goal is to move away from monthly security service payments - pay/use. What if I want to call the Police? Control System serves as a buffer between user and police, patent covers the ‘direct to police’ alert option, but onus is left on user to decide to call. You can monitor and call if you like, but not automatic. How will Sigilo reduce ‘False Alarms’? You could still request to be contacted or have option to cancel if there is a False Alarm, and could also have any type of response requested or have Control System’s managers take appropriate action as needed.
  • 16. 16Jay Martin October 2001 Dimple Card.ppt This is Sigilo, which over time will get both smaller & less expensive. It will enable protection of almost anything, anywhere for a few dollars. Sigilo The Entire System Relay Device Recipient(s) Stimulus Sensor (Wireless) Communications Infrastructure Relay Actuation Device Stimulus occurs Sensor mechanism closes or opens circuit Impulse through Connector to Relay Device Impulse activates Outbound call Outbound call connects and passes message Outbound Call matched to user’s request Outgoing messages sent to Recipients Relay Actuation Devices in field triggered 1 1 7 2 3 4 5 6 8 Its cost, ease of installation and flexibility will make it a ubiquitous option for use by the general public, business and the government. 2 3 4 5 Control System 6 8 7 Remote Control for individual or an array of Relay Devices can be used to control all of the units deployed at a single site and that can be activated or deactivated with a single touch of a button. * Note: Estimate of $1 cost was extrapolated from public statements and material costs given expected production quantities.
  • 17. 17Jay Martin October 2001 Dimple Card.ppt The Relay Devices will be made into different shapes depending on the application and needs for concealment by the users. Some examples: Sigilo Device Shape - Multiple Options for Multiple Applications Very flat will permit them to be hidden underneath rugs, mats, beneath TVs/VCRs (or other electronics or valuables), hide along sides of furniture so as to reduce the chance that it will be identified by an intruder. This configuration is expected to be very popular. These could be made to appear like small disks (ant traps, …) or other objects, but also would reduce the total surface size as compared to flat so as to be hidden in small spaces. Features such as sticky backs, Velcro and nail slots could be added to facilitate securing on sides/backs of furniture or other objects nearby. Small small cubes (theoretically this would be the shape that if the goal was to limit every dimension to its minimum within a permitted volume), would have the highest yield, but both manufacturing issues and questions of its utility for this application bring it into doubt. Some application may find this configuration most beneficial. The objective here would be to have it appear like a pencil or pen, or like a common wire. The picture depicts what is thought to be a ‘mine’ type pressure device for deployment on/in the ground for intrusion detection. New manufacturing techniques regarding lithography on mylar for electrical components make this a possibility. To better support the ‘hidden’ feature of this component, it is possible that we may find different common objects to locate it inside of. Some examples of this are rocks or garden objects, jewelry, pencils & notepads, plugs, Mezuzahs and money (rolls or stacks of bills). Sensor Relay Device Flat & as thin as possible Small cylinders or disks Small cube or polygon Thin cylinder or wire/tube Disguised as small objects
  • 18. 18Jay Martin October 2001 Dimple Card.ppt The benefits for the user will make this the dominant choice in security, and will also have additional benefits for other groups and society. Sigilo Benefits and Beneficiaries  Reduced cost to purchase, install, and maintain  Unchallenged versatility in:  Deployment and applications/uses  Sensing (for safety & research)  Alerting (parties & methods)  Increase scope, can protect individual objects  Elimination of central arming station & pad  Low maintenance  Permits affordable security in remote locations  Will support almost any type of sensor  Portable, can be moved or reused  Not dependent on local power or phone lines  Harder to disrupt or render ‘disarmed’  Flexible in response – calling ‘police/security’ not only option, will reduce costs  More easily hidden/concealed, not bulky  Easier to set-up, can be done by user  Monitoring company payment not required  Physical modifications to home/site not required  Decentralized detection  Object protection for non-intruders (maids, kids)  Disposable or can be deployed and forgotten  Increased need for services  Reduced barriers for purchasing alarm systems  Less maintenance  More accurate information from alarms  User responsible for more, less confusion  Higher utilization of patrols and security officers  Provides income to police and law enforcement if they choose to ‘require’ registration  Reduced alarms calling Police  Better information from alarms and 911 callers  Ability to ‘patrol’ remote and rural sites  Ability to eliminate/reduce patrol routines  Reduction in crime  Absorbs excess cellular capacity  Reduction in insurance losses/premiums  Reduced research and monitoring expenses  Reduced false alarms & their impacts Users Security Industry Law Enforcement Society
  • 19. 19Jay Martin October 2001 Dimple Card.ppt We intend to produce, distribute for sale and support these devices in the field (via the Control System). Multiple revenue opportunities exist. Sigilo Our Business  Submit newer versions of Patent to include more details  Seal up Intellectual Property Rights for our Patents  Identify and resolve all potential infringement issues on other Patents or Licenses required  License or Partner with those of significant contribution to Sigilo  Confirm through Due Diligence viability of Sigilo and market  Develop the Control System  Build or Contract Manufacturing  Coordinate Alarm Companies, Cellular Phone Providers and Law Enforcement Activities Required  Make and sell field components  Charge ‘by use’ for alerts and communications  Could charge to ‘register’ or ‘activate’ a device  License ‘response’ charges to Security Companies and Law Enforcement, obtain a percentage for administrative  Contract manufacture devices for large purchasers, such as Government Agencies and Security Companies wanting to set-up proprietary Control Systems  Sell ‘Trademark’ signs for display with devices to ward off intruders  License or partner overseas Sources of Revenue
  • 20. 20Jay Martin October 2001 Dimple Card.ppt Below are four examples showing its versatility, reach and power. Sigilo Market Analysis and Revenue Potential Home valuables (intruder, guests, children or maids) Application Response requestedSensor type Trip wire or pressure beneath the object or attached For this application, you can have yourself be the recipient via cell phone or pager, and regardless of whether you are home or not, any disturbance of this by anyone will be identified. Park or Monument (intrusion or vandalism) ‘Mine’ pressure sensors, vibration or trip wires near gates or doors. For parks, they could be deployed in areas known for intruders or where concerns of vandalism or theft are prevalent. Pager messages to police regarding alert and site could be input. Office valuables (wallet, keys, lap-tops, petty cash or other) Trip wire or pressure pad beneath or attached to object The object could be set on sensor which would trigger if it was lifted up or have a trip wire if pulled away. The response could be an instant message to rest of the office to go to your desk. Cabin* (intrusion, forced entry or vandalism) Vibration or trip wire on door, pressure pads on mats outside and inside With this set-up, you would know when someone was at the door, trying to open it (shaking knob) and then if they gained entry. You, neighbors (of cabin) & local police could be contacts. * Outside normal cellular area, if application justified increased cost, satellite networks can be used.
  • 21. 21Jay Martin October 2001 Dimple Card.ppt The applications are almost limitless. It will both replace expensive competition and provide security where high costs had prevented it. Sigilo Market Analysis and Revenue Potential There are places this is not effective - underground & submarines. Even at sites which have sophisticated security, Sigilo can serve as an inexpensive back-up. Hotel Rooms Portable belongings Remote structures Apartments Cars Planes Boats Parks and monuments Houses Animal Traps Cemeteries Golf Courses Construction Sites Schools Enclosed Property Lockers/ Storage Office Buildings Pools & other Recreation Centers
  • 22. 22Jay Martin October 2001 Dimple Card.ppt The market and needs are best shown by the relevant statistics. Sigilo Market Analysis and Revenue Potential • 2.43 Million burglaries in 1997 in United States • 13.4% of burglary cases solved nationwide • Homes without alarms 2.2 times more likely to be broken into • $11.5 Billion in property was burglarized in 1997 • Average loss nationwide is $1381 • $100 Billion yearly spent on security, 30 for IT • $19 Billion spent last year on residential and commercial alarm systems • 3 Million new systems installed, bring U.S. total to around $30.1 Million • $1200 spent on average installation, $27 monthly fee average • 20% of homes are estimated to have systems - 80% do not • Approximately 12-16,000 companies involved in the alarm business • Products are very price sensitive, most people would like them regardless of real need just for the peace of mind and security. Using simple estimates, multiply expected United States market by 2 or 3 to arrive at the total potential for Sigilo throughout the world. Sources: Security Sales Magazine Factbook, NBFAA, Internet
  • 23. 23Jay Martin October 2001 Dimple Card.ppt Our proposal has both Strengths and Weaknesses, but we feel that the choice becomes obvious when their impacts/potential are compared. Sigilo Strengths and Weaknesses  Costs of everything, from equipment, to installation to maintenance  User control  Increased applications  Harder to identify and defeat  Power of responses  Different modes and people  Multiple responses  Better information  Security without a service to wake entire neighborhood  Simplicity of sensors  Non-security applications Strengths  If Relay Device is found before sensor, signal could be blocked  Users have to set it up, more likely to make mistakes and need support  Cellular infrastructure is required, if not, need to go to satellites  Delay in picking up line of a second or two  Simplicity of sensors Weaknesses
  • 24. 24Jay Martin October 2001 Dimple Card.ppt Competitive Products and Service are very high cost to obtain, install and have monitored. Less expensive items are sensor-based sirens. Sigilo Competitive Options Alarm Systems Requiring Installation Services Available or Required ‘Do It Yourself’ Retailed Sold Security Options •Average installation in United States costs $1200 •Low price ones ($100-300) required 3 year service •Primarily perimeter and motion detector focused •Door/window contacts cost $75-125 each •Monthly monitoring fees, average is $27 •Some charges for Monitoring, Alarms & Re-setting •Installation of back-ups can run $100-1000 •Many companies require multi-year contracts •Sold by very few retailers (Lowe’s, Radio Shack) •Comprehensive systems are $200-400 range •Inexpensive ‘stand-alone’s (siren based) are $8-40 and utilize circuit breaks or motion sensors •Most systems are easy to defeat or disable Sources: APB News, Sigilo Research
  • 25. 25Jay Martin October 2001 Dimple Card.ppt When comparing Sigilo to exiting options, we see begin to understand it could open the ‘flood gates’ of inexpensive security expenditures. Sigilo Competitive Assessment Attribute SigiloExisting Cost(s) Lower in all aspects More expensive equipment, install and monitoring fee Ease of install Far simpler, but user’s responsibility Complicated/costly Detection abilities (function of sensors) Basic, but more accurate than motion-based systems More cost buys better detection Ease of use (arm/disarming) One button or call, computerized coding Code entering requiring user to remember, could forget Difficulty of defeat Usually too late, independent devices Intruder is looking for it, known centralized systems Breadth of responses Can be sameCan be same Risk of false alarms Same, but mitigated Same Applications Versatile, can use where never before Installed to fixed points, most systems focused We believe our option is better and less expensive, though large monthly fees paid to security companies provide some value. Tie Tie Tie Tie
  • 26. 26Jay Martin October 2001 Dimple Card.ppt Consumer Acceptance Our proposal has a variety of risks, and to better communicate them, we will present them in terms of the five categories below. Sigilo Major Risk Areas OperationsPriceFabrication Intellectual Property Issues A1) Do not get a any patent at all A2) IP is not strong enough for protection A3) Licensing other Patents becomes too expensive to continue or impossible task of getting all to agree A4) Someone patents around it A5) Refusal of licensing A6) Someone already has filed for same idea B1) Cannot produce them B2) Too costly to produce B3) Cannot get them to work B4) Quality issues C1) Less expensive alternative is found C2) Costs are much higher than anticipated (related to B2) D1) Do not function adequately in field D2) Cause too many problems, like false alarms D3) Can be disabled or interfered with too easily D4) Police, FCC or Cell Phone Companies stop proposal E1) Customers are not interested in them E2) Market is too small to justify investment E3) Consumers do not like the ‘do-it-yourself’ work involved E4) Better options introduced A B C D E
  • 27. 27Jay Martin October 2001 Dimple Card.ppt There are seven risks that concern us most, and they will be better understood or resolved during the early stages of this project. Sigilo Detailed Risk Assessment AnalysisNumber ProbabilityRisk Using the ‘new, useful and not obvious’ rule, we expect to get a patent on at least a part. We do not underestimate the IP coordination challenges of this. A1 Low/Medium Do not get any patent at all To execute this, one needs to be able to license or partner with Prior Art holders in Manufacturing, the Physical Devices and Operations - a lot of work ahead. A3 Medium/High Licensing too expensive or lack of agreements It is possible that a key patent or technology holder could ‘block’ this proposal, just to prevent it or do it themselves. They would have to settle/fight us also. A5 MediumRefusal of licensing We will find this out the hard way, but Diceland Technologies will be the enabler. They are the key to this venture, and will be able to ‘refuse’ any partner. A6 Medium Someone already has filed for same idea With the advent of new technology, areas such as MEMs and Nanotechnology will open up many new options. Patent covers these, but remains worrisome. C1 High Less expensive alternative is found User errors in both setting up and in operation is expected to cause difficulties, but the move to ‘physical’, and not motion sensors should mitigate this. D2 Low/Medium Cause too many problems, like false alarms We expect this will be a market issue. Many people will prefer the control and ability to take actions themselves a lower cost. Worst case, smaller market. E3 Low Consumers do not like the ‘do-it-yourself’ work involved
  • 28. 28Jay Martin October 2001 Dimple Card.ppt One can use the chart below to calculate expected yearly revenue and profits just from unit sales. This excludes ‘alerts’ & licensing revenue. Sigilo Revenue and Profit 25 Though we are not at the stage to present realistic expectations, we believe that we can exceed $3 Billion in revenue within a 5 year period. 75 100 150 200 300 400 500 750 1,000 1,500 2,000$ 100 300 400 600 800 1,200 1,600 2,000 3,000 4,000 6,000 8,000 943.75 281 375 563 750 1,125 1,500 1,875 2,813 3,750 5,625 7,500 883.50 263 350 525 700 1,050 1,400 1,750 2,625 3,500 5,250 7,000 813.25 244 325 488 650 975 1,300 1,625 2,438 3,250 4,875 6,500 4.00 Units (Millions) 753.00 225 300 450 600 900 1,200 1,500 2,250 3,000 4,500 6,000 692.75 206 275 413 550 825 1,100 1,375 2,063 2,750 4,125 5,500 632.50 188 250 375 500 750 1,000 1,250 1,875 2,500 3,750 5,000 562.25 169 225 338 450 675 900 1,125 1,688 2,250 3,375 4,500 50 150 200 300 400 600 800 1,000 1,500 2,000 3,000 4,000 441.75 131 175 263 350 525 700 875 1,313 1,750 2,625 3,500 381.50 113 150 225 300 450 600 750 1,125 1,500 2,250 3,000 311.25 94 125 188 250 375 500 625 938 1,250 1,875 2,500 2.00 251.00 75 100 150 200 300 400 500 750 1,000 1,500 2,000 20.80 60 80 120 160 240 320 400 600 800 1,200 1,600 15.60 45 60 90 120 180 240 300 450 600 900 1,200 10.40 30 40 60 80 120 160 200 300 400 600 800
  • 29. 29Jay Martin October 2001 Dimple Card.ppt Currently we are pursuing this as a Due Diligence to best determine viability. Its complexity and immense potential warrant resources. Sigilo Closing • The Patent author Jay Martin (Edward J. Martin, Jr.) is the only person working on this full-time. • Schief & Stone will most likely lead Patent and Licensing efforts. Much additional legal work will be required, particularly at the front-end. • In addition to understanding other patents, we also require assistance in improving the patent which has already been filed. • Sigilo is a placeholder name, and we are pursuing more attractive ones which have been Trademarked. Can easily create a new name also. • Our interim objective is to speak to Diceland or its patent holders regarding our options. Their technology will be of great help. We are searching for resource partners, and prefer to find ones who could, if this warrants, provide multiple rounds of funding.