``Royalties generally continue throughout the life of the licensed patents,`` Qualcomm says in its most recent annual report, but adds that ``in a small number of agreements, royalties are payable on those patents for a specified time period.``

In fiscal 2005, about $2.1bn, or 37 per cent, of Qualcomm`s $5.6bn revenue was earned in South Korea, according to company financial data - the country is the largest single user of Qualcomm`s technology. Qualcomm no longer manufactures chips itself, and makes much of its income from royalty and licence fees.

According to media reports from Korea during the past couple of years, telecoms manufacturers have complained that Qualcomm`s royalty charges in Korea are too high compared to those levied elsewhere. The country has tended to act as a testbed for Qualcomm`s technologies. Qualcomm would not confirm a report that it charged a royalty of 5.25 to 5.75 per cent in Korea.

http://www.vnunet.com/vnunet/news/2147041/korea-qualcom-phone-royalty

Autonomy too:

Autonomy`s Profits & Gross Margins

Ultimately, profit is the ``proof of the pudding`` of any business success story. Autonomy reports under US GAAP which means we can be directly compared with US technology companies. Such comparison shows that Autonomy`s gross margins remain high and reflect the fact that we are all about selling software, not generating revenues from services such as implementation and customization for particular customers. Companies with 60-70%gross margins will typically be in this situation due to the services they sell as part of a software sale, or because they resell someone else`s product. Autonomy does neither.

On top of Autonomy`s product business, revenue is generated through IP licensing to other software vendors (OEM`s). Ongoing royalties are generated to Autonomy by OEM`s selling their product containing Autonomy technology - these revenues are 100%gross margin revenues, and extremely scalable since no ongoing effort is required from Autonomy to grow sales by OEM partners.

Autonomy`s headcount growth in relation to its revenue growth is decoupled. There is virtually no correlation between revenues and the number of employees and, as a result, revenues have historically grown exponentially while headcount has grown sub-linearly.

The effect of OEM`s 100% gross margin royalties multiplies the effect of this important differentiator even separating, perhaps uniquely, any linkage to sales headcount.

http://www.autonomy.com/content/Investors/WhyIsAutonomyDifferent.html

the list is never-ending.

Was Casio`s $2m payment, ``one large lump sum``, based on revenues of $6bn?

(All the above links were found on RB)

Time to get ``hung up`` on royalties?

Be well