I agree 100% with your logic FWIW, but IMO I believe we would also have to factor in measured "added value" of the processor to accurately calculate royalty rate. For example, remove a processor from your PC, Firewall, Router, Medical Instrument, and many other devices, and what do you have...an expensive paper weight. Remove the processor from your car and maybe your ABS Brakes don't work...big deal right? Your car still moves so your brakes are a little spongy! LOL OK, brakes are important, so maybe the GPS goes dead is a better example but you see my point. This seems to be the tricky point to me....but I really am a dim bulb!
Good luck to you, me, us, and all longs!