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| Authored by: Anonymous on Saturday, January 05 2013 @ 10:00 PM EST |
| No - it's a percent of the retail price. [ Reply to This | Parent | # ]
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| Authored by: Anonymous on Sunday, January 06 2013 @ 12:20 AM EST |
As the royalty rate here is on the selling price, not the profits, isolating the
royalty carrying step to a subsidiary/complicit value adding reseller won't
help.
A different trick seems to be actually accepted by Motorola in the examples in
its brief: Put the license needing part in a separately priced "optional
extra" (like the Wi-Fi adapter for older XBox 360s or the downloadable
Windows Media Player for the "N" and "NK" variants of
Windows), then make that product a "loss leader" by selling it as
cheaply as they can get away with, while relying on no-one buying it without the
profitably priced product.
Another option could be for a subsidiary/complicit company to make a "Wi-Fi
complete" package of chip and software with the royalties fully paid up (as
X% of the low price of that bundle), then having the main company simply buy
this bundle as a card/part to install. Again the Motorola brief hints to this
when it argues that neither the chip from Marvell, nor the chip design from ARM
included a license that covered all the Wi-Fi stuff in the XBox 360 S.
[ Reply to This | Parent | # ]
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