IP Business Models
Picked off
http://www.electronicsweekly.com/blogs/intellectual-property/2007/05/new-business-models-for-ip.html
There are 3 fundamental business models that are in play today:
• License fee + Royalty. In this classic model practiced by leaders such as ARM, the customer pays an upfront fee for the rights to use the IP and then pays the IP owner a royalty based on the percentage of the value of the chip it’s used in.
• Subscription model. This is typically a royalty-free model practiced by leaders such as Synopsys that treats IP like an EDA tool. The customer can use the IP freely as long as they have the license needed to implement or simulate the IP. No more license, no more IP.
• Foundry subsidized model. This is typically practiced by the foundries who will provide certain IP to their customers as long as they use their fab. This effectively is a royalty-only model.
I think MindTree’s Bluetooth and UWB come under the first model and that seems the most profitable/logical to me. But then again the other models would work well in their situations as well I guess. The article does talk about more evolved models that provide solutions, but I guess only time will tell about them
