Contents PREFACE... 3 ROYALTY RATE DERIVATION MODELS... 12 INTELLECTUAL PROPERTY & INTANGIBLE ASSETS DRIVE ACQUISITIONS AND DEALS... 13 BUSINESS ENTERPRISE FRAMEWORK... 14 INTELLECTUAL PROPERTY SHARING IS VITAL... 17 BEYOND COMMODITY EARNINGS... 18 DRIVING FORCES BEHIND ROYALTY RATES... 20 SIMPLE RULES OF THUMB... 21 The "25%" Rule... 21 Industry Norms... 24 Return on R&D Costs... 24 The 5% of Sales Method... 24 INFRINGEMENT DAMAGES ANALYSIS... 25 The Analytical Approach... 25 Hypothetical Example... 26 Comparable License Transactions... 27 Comparative Analysis Summarized... 29 INVESTMENT RATE OF RETURN ANALYSIS... 30 DISCOUNTED CASH FLOW ANALYSIS... 36 ROYALTY RATE GENERAL GUIDANCE... 42 COMMUNICATIONS... 45 3G AND 4G TELECOMMUNICATIONS... 45 ACOUSTICS... 45 ANTENNA... 46 BROADBAND... 46 BROADBAND... 47 BROADBAND... 47 CABLE TRANSMISSION STANDARDS... 48 CABLE TRANSMISSION STANDARDS... 49 CELLULAR PHONE DOCKING STATION... 50 CELLULAR PHONE DOCKING STATION... 51 CELLULAR TELEPHONE TECHNOLOGY... 52 CELLULAR TELEPHONE TECHNOLOGY... 53 CELLULAR TECHNOLOGY... 58 CELLULAR TECHNOLOGY... 58 CELLULAR 3G TECHNOLOGY... 58 CELLULAR CDMA TECHNOLOGY... 59 CELLULAR CDMA TECHNOLOGY... 59 CELLULAR CDMA AND WCDMA TECHNOLOGY... 60 CELL PHONE E-MAIL... 61 CELL PHONE E-MAIL... 61 CELL PHONE - SOFTWARE APPLICATIONS... 62 CELL PHONE SOFTWARE... 62 IPHONE MICROPROCESSOR... 63 CELLULAR DATA TRANSMISSION... 63 DIRECTED PARAMETRIC SOUND... 64 EMERGENCY ALERT... 64 EMERGENCY COMMUNICATIONS... 66 EMERGENCY RESPONSE... 67 ENCRYPTION... 69 7
E-RETAILING... 69 FIXED-MOBILE CONVERGENCE... 70 IPHONE AND I-PAD PATENTS... 70 INTERNET SOFTWARE... 71 LTE TELECOMMUNICATIONS TECHNOLOGY... 72 LTE... 72 LONG DISTANCE CALLING FEATURES... 73 MESSAGING... 73 NETWORK ACCESS... 73 NETWORK SOLUTIONS... 74 PREPAID CALLING CARDS... 75 SMART PHONE - BROKERAGE ARRANGEMENT... 75 SMART PHONES... 76 SMARTPHONE... 76 SOFTWARE... 77 SPEECH COMPRESSION STANDARDS... 77 TELECOMMUNICATIONS ACCESS DEVICES... 78 TELECOMMUNICATIONS... 79 TELECOMMUNICATIONS... 80 TELECOMMUNICATIONS... 81 TELECOMMUNICATIONS... 81 TELECOMMUNICATIONS SERVICE... 82 TELECOMMUNICATIONS... 83 TELECOMMUNICATIONS - AT&T 802.11N AND 802.11AC PATENT LICENSING PROGRAM... 83 TELECOMMUNICATIONS... 84 TELEVISION TRANSMISSION... 84 TIVO TECHNOLOGY... 85 TRANSCEIVER INTEGRATED CIRCUIT... 86 VIDEOCONFERENCING PORTABLE... 86 VOICE MAIL... 87 VOICE MAIL... 87 VOICE OVER THE INTERNET (VOIP)... 87 VOICE OVER THE INTERNET (VOIP)... 88 VOICE OVER THE INTERNET (VOIP)... 89 VOICE OVER THE INTERNET (VOIP)... 90 VONAGE INTERNET PHONE SERVICE... 90 VONAGE INTERNET PHONE SERVICE... 91 WIRELESS... 91 1394 SPECIFICATION... 95 1394A SPECIFICATIONS... 95 ACER PERSONAL COMPUTING... 95 AST PERSONAL COMPUTING... 96 BIOMETRIC IDENTITY SOFTWARE... 96 COMMUNICATIONS... 97 CRAY SUPERCOMPUTER ELECTRONIC CONNECTORS... 97 COMPACT DISKS AND DVDS... 98 COMPACT DISKS... 99 DATA STORAGE... 99 DATA STORAGE...100 DATA STORAGE...101 DATA STORAGE...101 DATA STORAGE...102 DNA SECURITY SYSTEM...103 ENTERPRISE APPLICATION INTEGRATION MIDDLE-WARE...104 FACIAL RECOGNITION SOFTWARE...104 FINGERPRINT SECURITY...105 8
GRAPHICS...106 HUMAN VOICE SECURITY SOFTWARE...106 IBM PS/2...107 IMAGE RECOGNITION...108 INFORMATION SECURITY...108 INFRARED SECURITY CAMERAS...109 INTRUSION DETECTION SYSTEMS,...110 RADAR SYSTEMS FOR BORDER AND PIPELINE SURVEILLANCE,...110 MONITORING AND VIDEO SURVEILLANCE SYSTEMS...110 INTELLIGENT ALERTING VIDEO...112 MACINTOSH...113 MECHANICAL FANS...114 MILITARY SITUATIONAL SURVEILLANCE...114 MODEM...115 MODEMS...115 MODEMS...115 COMPUTER MEMORY...116 RECORDABLE DISKS...117 SMART CARDS...118 SMARTCARD - TRANSACTION...119 SMART CONNECTOR...120 SOUND...120 TABLET...121 TELESCOPES - COMPUTERIZED...121 TRACKING...122 TRACKING...123 TRACKING...124 TRACKING...125 TRACKING...126 TRACK BUSES...127 TRACKING - GPS...127 COMPUTER SOFTWARE...129 ADAPTIVE RECOGNITION TECHNOLOGY...129 APPLE COMPUTER SCREEN SYMBOLS...129 APPLE NEWTON PDA...130 APPLICATION INTEGRATION...130 APPLICATION SERVICE PROVIDER...131 AUTODESK'S AUTOCAD RELEASE 12...131 BAR CODE...132 BAR CODE APPLICATION...133 CHARACTER RECOGNITION AND FRAUD PROTECTION...134 COMPUTER AIDED DESIGN...135 CONSTRUCTION SOFTWARE...135 DATABASE...136 DATABASE PROCESSING...137 DEBT COLLECTION...137 DECOMPRESSION TECHNOLOGY...138 DIAGNOSTIC...139 DISK COMPRESSION...140 DISTRIBUTED MANAGEMENT ENVIRONMENT (DME) 1.0 TECHNOLOGY...141 DOCUMENT EXCHANGE SECURITY...141 DOCUMENT MANAGEMENT...142 DOCTARR SOFTWARE...142 DOS OPERATING SYSTEM...143 EDUCATIONAL...143 9
EDUCATIONAL...144 EDUCATIONAL...144 EMAIL AND WEB CYBER SECURITY...145 ENCRYPTION...145 ENCRYPTION SECURITY...147 ENCRYPTION SECURITY...147 FACTORY CONTROLS...148 FINANCIAL QUICKEN SOFTWARE...148 FRONT END IMAGING SOFTWARE...149 GAMES...149 GAMES...150 GAMES...150 GOVERNANCE, RISK AND COMPLIANCE...150 GRAPHICS INTERCHANGE FORMAT...152 IPHONE 2.0 APPLICATIONS...152 INTEGRATION...153 INTELLIGENT SOFTWARE SOLUTIONS...154 INTERACTIVE TECHNOLOGY...154 INTRUSION SECURITY...154 LOCATION-BASED ADVERTISING SOFTWARE...155 MAINFRAME...156 MAC OPERATING SYSTEM AND RHAPSODY...156 MEDICAL IMAGING...157 MEDICAL IMAGE MANAGEMENT...157 MEDICAL INFORMATION MANAGEMENT...158 MICROSOFT WORD...158 MULTI-USER TECHNOLOGY...159 NETWORKING...160 OPERATING SOFTWARE...161 PHOENIX TECHNOLOGIES BIOS...161 PREDICTIVE KEYBOARD...162 PROFESSIONAL PRACTICES MANAGEMENT...163 SECURITY...163 SECURITY - FINGERPRINTS...163 SPEECH COMPRESSION...164 SPOKEN WORD AUDIO BUSINESS MODEL...164 SPREADSHEET...166 SPREADSHEET...166 TEXT TO SPEECH TECHNOLOGY...166 THREE-DIMENSIONAL VISUALIZATION...168 TOOLS DISTRIBUTION RIGHTS...168 UNIX OPERATING SYSTEM...169 VIRTUAL REALITY - QUICKTIME...169 YEAR 2000 SOFTWARE...170 WIRELESS RADIO COMPUTER NOTEBOOK CONTROL...170 WORD PROCESSING AND OFFICE SUITE SOFTWARE...171 INTERNET...172 ADVERTISING TECHNOLOGY...172 BARTER SYSTEM...172 COLLABORATIVE INTERACTIVITY...172 DOMAIN NAMES...173 E-BUSINESS...175 ENCRYPTION DOWNLOADING...176 GEOCITIES SOCIAL NETWORK...177 HOSPITALITY...180 10
INDIAN LANGUAGE INTERNET SEARCH TOOL...180 INSURANCE CLAIMS...181 INTERNET DATA COMPRESSION...181 SEMICONDUCTOR CHIP THE INTERNET OF THINGS...181 INTERNET GAMING...182 INTERNET SECURITY...182 INTERNET SERVICES...183 WIRELESS APPLICATION PROTOCOL...183 IEEE 802.11 WIFI STANDARD...184 IEEE 802.11 WIFI STANDARD...185 IEEE 802.11 WIRELESS NETWORKING STANDARD AND ITU-T H.264 VIDEO CODING STANDARD...185 SEMICONDUCTORS...187 CHIP INTERFACE TECHNOLOGY...187 CHIP STACKING TECHNOLOGY...187 CORTEX PROCESSOR...188 D-RAM...188 FULL DUPLEX SINGLE CHIP VIDEO CODEC...189 HIGH-BANDWIDTH CHIP CONNECTION TECHNOLOGY...189 LASER TECHNOLOGY...190 LIGHTNING RESISTANCE...190 MANUFACTURING...191 MANUFACTURING...191 METAL OXIDE SEMICONDUCTOR FIELD EFFECT TRANSISTORS...192 NANOCOMPOSITES...192 PENTIUM II PROCESSOR...193 POWER CONVERSION...193 PROGRAMMABLE LOGIC...194 SUPERCONDUCTOR MATERIAL...194 TEXAS INSTRUMENTS...195 TEXAS INSTRUMENTS...195 TEXAS INSTRUMENTS...197 TEXAS INSTRUMENTS...197 TEXAS INSTRUMENTS...198 THIN FILM FERROELECTRIC TECHNOLOGY...199 VIDEO CODEC TECHNOLOGY...199 THE MAGNITUDE AND MEANING OF ROYALTY MISREPORTING...201 COMPANY INDEX...207 11