Report: Arm proposes change to IP royalty model
By Peter Clarke, eeNews Analog (March 24, 2023)
Processor intellectual property licensor Arm Ltd. is looking to increase sales by changing in its royalty model from one based on chip value to one based on equipment value, according to the Financial Times.
Arm, owned by SoftBank Group, is making the move specifically in the smartphone area where it has a near-monopoly. The change could be brought in next year, the report said.
It is thought that Masayoshi Son, CEO of SoftBank, believes that Arm has not extracted as much value from its patents as it could have done and wants to boost Arm’s profit forecasts ahead of an initial public offering of shares. This could help maximize the money raised by an IPO which SoftBank is eager to receive to put the company on a sound footin
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