It's that time again LOL

- 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.

An agreement is reached whereby a fixed percentage of ALL revenue is paid, quarterly, on officially filed income statements.

- 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.

All things are possible, but how many are probable?

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. 

All an infringer has to do is either borrow the sum needed to settle for past infringement or issue stock. That is why patent holders, such as ARM, have growing revenues and high P/E ratios. Future royalty payments will be factored into a licensee's price and the income received before having to pay PTSC.

Be well