paheka, if I recall correctly, IDCC's strategy includes setting a cap on the royalty dollar amount on a phone but then also places a floor in there too. This is to designed to make sure that the average amount per phone, expensive or cheap, brings in a measurable stream of income. It has the effect of broadening out IDCC's royalty base. I think the net effect is still very substantial income for IDCC, regardless of what the formula is.