Managing Channel Partner Export Compliance

Marla Lyon – Trade Compliance ManagerAvid

2© Avid 2010

About Avid

• Founded in 1987, pioneered digital video editing on a computer

• Global leader of digital audio and video solutions

• 2,100 employees worldwide

• Headquarters: Burlington, MA

• Sales/Revenue Mix: Direct – 40% Channel Partners – 60 %

• FY 2010 Revenue: $678,522,000

• Commerce Control List: EAR99, Categories 4 and 5

• Jurisdiction: U.S. EAR = 100%

Avid confidential and proprietary information – Please do not copy, forward, redistribute, or publish

3© Avid 2010

About Avid

For nine years running, every nominee and winner for a Sound Editing Oscar has

used Pro Tools

We’ve earned hundreds of prestigious awards,

including, 14 Emmys, 1 Grammy and 2 Oscar

statuettes.

One or more Avid solutions was used to produce the top 10 Oscar nominated films

for 2010.

13,000,000 unique registered customers use Avid home video editing

solutions to create videos for personal enjoyment.

We have the world’s largest collection of online

music scores with more than 80,000 members and 91,500 scores available for

download.

First-ever A.C.E. Eddie Award for Technical

Excellence

4© Avid 2010

Our Products

ISIS 5000

Keyboards

Pro Tools Mbox

InGame

VENUE

MC Artist Controller

Avid confidential and proprietary information – Please do not copy, forward, redistribute, or publish

5© Avid 2010

Our Customers

Media Enterprise

ProfessionalCreative Enthusiasts

Source: IABM 2009 update document;  Frost & Sullivan 2010, MI Sales Trak 2009-2010, NPD, GFK, Music trade magazines 2010

• Home video makers

• Amateur musicians

• DJs

• Serious hobbyists

• Broadcast networks• Cable operators• Station groups• Local broadcasters• Government

agencies• Sportscasters

• Enterprise content creators

• Independent editors and audio engineers

• Facilities owners• Live sound mixers• Educators and

students

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Avid Sales Channels

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• Resellers– Professional Audio Products– Professional Video Products

• Major Retail Chains– Consumer Audio Products– Consumer Video Products

• Direct Sales– Broadcast Networks

• Ecommerce

7© Avid 2010

Managing Channel Partner Compliance

• Channel Partner Contracts– Export Compliance Language

• Channel Partner Website– Export Compliance Page– Links to BIS, OFAC websites

• Channel Partner Communications

Avid confidential and proprietary information – Please do not copy, forward, redistribute, or publish

8© Avid 2010

Managing Channel Partner Compliance - Contracts

Channel Partner Contracts – Export Compliance Language

• Define Export and Reexport

• Explain Channel Partner’s responsibility to comply with export control regulations, both U.S. and other countries

– Screening responsibilities– Licensing responsibilities

• Provide website links for additional information

Avid confidential and proprietary information – Please do not copy, forward, redistribute, or publish

9© Avid 2010

Managing Channel Partner Compliance - Website

Channel Partner Websites – Export Compliance Page

• Overview of regulations

• Restricted Parties regulations and website– Entity List– Denied Persons List– Specially Designated Nationals List

• Embargoed Destinations and websites

• Related External Links– Other countries’ export control websites

• Notice and Disclaimer– Providing information as general guideline– Entity exporting the product is responsible for being knowledgeable of the

regulations

Avid confidential and proprietary information – Please do not copy, forward, redistribute, or publish

10© Avid 2010

Managing Channel Partner Compliance – Communications

Channel Partner Communications

• Updates to Export Compliance page

• Send alerts on rapidly changing events (i.e Libya)

Avid confidential and proprietary information – Please do not copy, forward, redistribute, or publish

11© Avid 2010

Managing Channel Partner Compliance – Ecommerce

• Who is the USPPI?

• Export Compliance Statement of Work (SOW)

• Export Compliance Addendum

• Definition of Terms

• Screening Responsibilities – – Antiboycott– Sanctioned Parties– Embargo Screening

• AES Filing

• Recordkeeping Responsibilities

• Compliance Contacts

Avid confidential and proprietary information – Please do not copy, forward, redistribute, or publish