From: Keith Fox [mailto Sent: Thursday, February 18, 2016 3:16 PM To: Magnus Resch Cc: Anastasiya Siro Yvonne Subject: RE: Term Sheet and Loan Agreement ; Maximilian Straub <=a; Chan, Yvonne is traveling back to her office and will send term sheet and loan revisions shortly. I spoke with several IP lawyers and would like your guidance on what I have learned. Here's the simple summary: - data is fair usage and not an issue for the app - user generated images and content is covered as long as we remove images, as requested. It's covered in DMCA, section 512 - scraped data is more problematic for several reasons: 1) many sites prohibit scraping in their terms and conditions and therefore image collection is a violation of their terms. 2) most commercial sites do not have the rights to the images. They are permitted for the sole purpose of the one-time commercial usage. 3) we are "commercial" and therefore required to clear rights through the artists directly, via galleries / institutions and through clearing houses like ARS and VAGA. You have $86,000 in year 1 and $172,800 in year 2 in your budget. - Do you agree with this assessment? - Many of the images and prices are from auction houses. Are you concerned that they might ask you to take down the images? - Can you let me know how you projected your image rights budget? Please let me know your thoughts. Keith EFTA00715437