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Message: From Virt`s take on the SHM

From Virt`s take on the SHM

posted on Apr 30, 2006 09:00AM
10) Recurring revenues? – Pohl said, “Board Mantra is Get it”.

3) TPL prefers no royalties and prefers licensing. “Royalties are not in our business model. We have no infrastructure to support this activity”.

Ok, what is the difference in recurring revenues and recurring royalties.

TPL`s point is, imo, that they have not way to audit a company to assure they aquire the correct % for each sale of licenced product. I can see that to be a huge undertaking.

My point is that Pohl sould put pressure on TPL to go after very large settlements from the big guys like Sony and to make it easy on the company in question, allow them to make payments on the settlement amount over a period of time, say 10 years. I`ll make up a couple of examples..say we could talk sony into a 200 million dollar deal and in this case we could have recurring revs of 10 million a year for 10 years, PTSC`s part. Small fry`s paying say 100K a year and bigger ones paying 1 mill a year. Once you add up a couple of hunderd companies paying over time we will have a longer run of recurring revs.

So I say, and who am I, that we go for larger deals, and allow multi payments, companies can budget the deal and swallow a bigger settlement. Towards 2015 we would be still signing up payments that extend for 10 years.

No one time payment deals, got for bigger amounts and take payments, would work better in my mind.

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