ronran / Re: LL, re HTC as handset maker only....
in response to
by
posted on
Sep 30, 2013 11:03AM
My view is that if HTC is producing small electronic devices (cell phones) and largely just that, then all of their products infringe. They have several different models of phones, but all of them (I assume) infringe. If their products sell for approx. $500 - $700 each, they sell millions of devices (perhaps over 12M) each year in order to produce $8B per year in revenues (some years up to $12B if memory serves).
Contrasting them, for example, with Amazon, who sells Kindles, but also millions of other products that don't infringe. For every $8B in revenue that Amazon produces, the portion created by infringing revenues is logically much lower, as their product offering is much more diverse, but less broadly MMP containing. Therefore, in my view, Amazon's license fee for a corresponding $8B of revenue would be much less than HTC's.
On the other hand, HTC, in my view, would be subject to a similar proportionate fee for their $8B in revenue that a Sony, or HP, or other such company that derives all, or nearly all of it's revenue from MMP containing electronic/computer equipment.
Hopefully that clarifies my point better. I'm saying that HTC's $8B per year revenues are heavliy MMP dependent and thus the fact that they're primarily a handset maker, is irrelevant, since all of those handsets depend on the MMP and thus all of their revenue depends on the MMP.
That MMP dependence is my educated ASSUMPTION, and I'm applying it broadly, but, IMO, $8B from an HP, Fujitsu, Sony, or Nokia is equivalent to $8B from HTC, but $8B from John Deere, or Amazon, or BMW, or such non-predominately-electronics based revenue company is NOT equivalent to $8B from HTC.
So I would expect, that if an early mover like Sony, Fujitsu, etc. paid $1M for each $5B in revenue they produced, then HTC, because they've drawn this out and taken us to court and will have court imposed damages if we win, would, per the footnote be subjected to a higher rate than those early movers who chose licensing over litigation, perhaps something like $2.5M for each $5B, etc. (these numbers are for illustration only, as I haven't gone back to figure out the actual numbers).
Does that make more sense?