Saturday, May 27, 2006 4:11:53 PM
I've never been a fan of IDCC producing chips. I love the IP tax collector model - fixed costs, so incremental revenue drops right down to the bottom line. Getting that additional revenue has proved tough, but I think it is the best way to go.
Chips involve costs to produce, market competition, obselesence risks... just a lot of things that can result in a big top line but a smaller bottom line. In addition, we now have to license other companies IP. I fear cross licensing agreements where we "trade" IP, since IDCC sales would be tiny compared to our potential licensees.
Why is it you think it may be good for IDCC to move in this direction? Do you think it will help IDCC to get licenses? Do you believe chip sales will be a profitable market for IDCC? I respect your opinion and hope you can enlighten me on the pros and cons of IDCC entering into the chip business.
Thanks,
Frank
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