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
- Ultra-Low-Power LPDDR3/LPDDR2/DDR3L Combo Subsystem
- Parameterizable compact BCH codec
- 1G BASE-T Ethernet Verification IP
- Network-on-Chip (NoC)
- Microsecond Channel (MSC/MSC-Plus) Controller
Related Articles
- Integrating VESA DSC and MIPI DSI in a System-on-Chip (SoC): Addressing Design Challenges and Leveraging Arasan IP Portfolio
- The Thriving Silicon IP Business
- Formal Property Checking for IP - A Case Study
- VLSI Physical Design Methodology for ASIC Development with a Flavor of IP Hardening
Latest Articles
- Leveraging FPGAs for Homomorphic Matrix-Vector Multiplication in Oblivious Message Retrieval
- Extending and Accelerating Inner Product Masking with Fault Detection via Instruction Set Extension
- ioPUF+: A PUF Based on I/O Pull-Up/Down Resistors for Secret Key Generation in IoT Nodes
- In-Situ Encryption of Single-Transistor Nonvolatile Memories without Density Loss
- David vs. Goliath: Can Small Models Win Big with Agentic AI in Hardware Design?