The Alarmforce settlement might generate $40,000 annually, skeet.
I have always said that REVO patents are worth something, and REVO should get something from Eyetalk365.
BUT the patents are not going to generate the $billions predicted by Carter and Ali.
It is possible to make an informed estimate of the likely royalty from an Alarmorce settlement.
Here are the key pointers:
1. The settlement agreement will only apply to the USA, because REVO has no patent protection outside the USA.
2. The settlement agreement will only apply to revenues from the Video Relay product, because that's the only product that infringes the Patents-in-suit filed by Eyetalk365
3. The absolute maximum base for the royalty is the monthly income from Video relay subscribers in the USA.
4. We know, from the Alarm Force Annual Report, that there were about 3,400 Video Relay subscribers in the USA, paying an average of C$29, in 2014.
5. We can calculate that Video Relay subscriptions will produce annual revenues in the region of C$1,183,200
6. Royalties are, generally, in the region of 3% BUT, let’s be really generous and say that REVO gets a royalty of 10%. That produces C$118,320 of royalties in the year.
7. As Alarm Force reports in Canadian Dollars the C$118,320 royalties convert to US$ 94,656 at average exchange rates.
8. IF REVO gets 40% of the royalty that makes the settlement worth about US$38,000 to REVO.
Peanuts.
