Essentially we are getting royalty payments, just in a different form.  I believe the calculation would go something like this:  an estimate is made of future royalties that would be due, and that annual stream is then discounted back to a present value lump sum.  Theoretically the value of that lump sum basically equals the value of the future stream of royalty payments when the time value of money is factored.  Thus we end up in the same boat. 

The lump sum is then paid; it is cleaner, takes any future uncertainties out of the picture, and then allows Patriot to re-invest the lump sum to provide additional future streams of income, be it interest earnings, or a share of earnings from another type of investmet/joint venture. 

This has been discussed many times before. 

PS -- answering another post -- No, dividends are not a "write-off" for the company.