A Win-Win Royalty Deal Structure in IP Business
Barun Kumar De (SmartPlay Technologies)
Royalty is a critical component in any IP deal. SoC companies want IP companies to share the risk of success (or failure) of their SoC and to enable that they want IP vendors to accept a substantial part of their payment to be paid as royalty. But the customers are also not very interested to shell out huge money to IP companies if the SoC is successful and hence they would like to have the royalty percentage as much as low which IP companies find non-acceptable in several situations.
One way, the IP companies can overcome the challenge is to provide a buyout option to its customers. The buyout option allows buyer to pay a certain amount of money to the seller and stop all future royalty payment. SoC companies will go to buyout option if they see the cash outflow of all the future royalty is more than the buyout price. IP vendor can demand of higher royalty percentage with the buyout option.
To read the full article, click here
Related Semiconductor IP
- Root of Trust (RoT)
- Fixed Point Doppler Channel IP core
- Multi-protocol wireless plaform integrating Bluetooth Dual Mode, IEEE 802.15.4 (for Thread, Zigbee and Matter)
- Polyphase Video Scaler
- Compact, low-power, 8bit ADC on GF 22nm FDX
Related White Papers
- SOC Stability in a Small Package
- Integrating VESA DSC and MIPI DSI in a System-on-Chip (SoC): Addressing Design Challenges and Leveraging Arasan IP Portfolio
- A Knowledge Sharing Framework for Fabs, SoC Design Houses and IP Vendors
- Context Based Clock Gating Technique For Low Power Designs of IoT Applications - A DesignWare IP Case Study
Latest White Papers
- Reimagining AI Infrastructure: The Power of Converged Back-end Networks
- 40G UCIe IP Advantages for AI Applications
- Recent progress in spin-orbit torque magnetic random-access memory
- What is JESD204C? A quick glance at the standard
- Open-Source Design of Heterogeneous SoCs for AI Acceleration: the PULP Platform Experience