"We have paid a small amount of cash upfront for the assets. And every time we sell a chip with their technology, we will have to pay them an 'x' amount of royalty for the next five years," said Ramachandra Reddy, CEO, MosChip.

Re-occurring revenue.

TPL has finally figured out how to do a deal with royalties! Maybe they'll do a royalty deal on the MMP for PTSC now too?

As a side note, we may see a MMP license for MosChip very soon also.