Re: Email from Sierra Wireless CFO ...Ease
posted on
Dec 15, 2012 01:48PM
I think the royalty rates are fairly standard and I would be willing to bet other IP firms use similar structures. The fact remains we do not know how much the license cost Sierra. The only piece of information we have directly from the license is an email stating there are 1000s of products that would need to be repackaged to have further specific MMP designation associated to them outside of patent numbers. And the CFO said the repackaging itself would be tantamount to the cost of the license itself. If we knew which products were accused and took the 1000s of products dollar value and multiplied it by the consumer rate of 1.8%, that should give us a ball park figure. Move it to 2.2% to factor in the corporate rate of 7.2%, and that would be the high end. We don't know what the lump sum cost is for the license and you can try and extrpolate from the email, or the royalty percentages to arrive at the lump sum number. Neither is a very good indicator ...