- “Base = derived from smallest priceable component (i.e. baseband)”
- “Rate = no higher than adjusted pro-rata share of SEPs”
- “Control for quality, over-declaration & royalty stacking”
- “Build favorable, arms-length ‘comp’ licensees”
And, regarding the fourth measure, for example, Apple’s actions over the years in the run-up to suing Qualcomm were in “Creating Evidence” for the lawsuit so “[it]can leverage [its]purchasing power” and “captur[e]IP value with purchase power.” To achieve this, Apple “selectively filter[ed][deal-flow] pipeline to identify the most desirable deals,” it “Us[ed]Liabilities as an Asset” and “Evaluated risk, cost and use[d]as evidence… as a comparable in disputes with others.” Apple sought to “create leverage by building pressure” that would “hurt Qualcomm financially,” put “Qualcomm’s licensing model at risk” and “drive Qualcomm to engage Apple” on a significantly weakened basis.
Timeline of Contract Manufacturers’ Subscriber Unit Licensing Agreements