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Monday, September 07, 2009 1:41:36 PM
Manufacuturers of CD players had to pay a negotiated percentage of the selling price of the end product to the patent holder. These could range anywhere from e.g .0025% to .05%. So this might be a reason they are fighting NEOM so hard. I was involved with some of the Panasonic royalties paid to different patent holders. This is an area that is kept very quiet. The big boys like Panasonic, Sony & Phillips get together each yr and negotiate the fees. What they do is swap one patent for another so they do not have to pay the royalties in some cases. When it comes to the little guy they just try to bury them because they feel they do not have the money to fight their huge legal means and funds.
For NEOM it must have huge potential if they win - I am just making a wild guess - 1B phones if they get 200M phones in 2yrs that sell for $80 (price to providers) and get a .01% royalty the numbers are like this 200M x 80 x .01 = $160,000,000
So it could be huge and this is why someone is willing to back them
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