Another post I'm compelled to respond to....
While ongoing royalties sound great from the standpoint of predictable income into the future, with comes two major concerns:
- Our team would have to develop viable methods to monitor shipments of infringing product in order to determine royalties owed, and would be totally dependent on information provided by the Js to enable such determination (you gonna trust these guys? LOL). Very high "pain in the butt" factor.
- With a royalty scheme comes a degree of risk. Though not likely in the immdiate future (next year or two), a viable work-around to our patented tech could surface, potentially ending this revenue stream.
IMO, ongoing royalties in the customary fashion are not even being considered due to the above. Keep in mind that the primary purpose of ongoing royalties, IMO, is to avoid crippling an infringer unable to pay the entire amount "up front". The way to work around this and avoid the above pitfalls of customary ongoing royalties is to set up a payment schedule with a predetermined annual payment amount to be paid on a date certain every year. We get full payment, a predictable revenue stream over time, and avoid all "special accounting", pain in the butt, and risk of work-around tech coming into play.
JMHO,
SGE