The following details the base rates currently available for a SEP license for handsets:*
|Technology||Rate||ASP Floor||ASP Cap|
|Cellular Wireless||3G||0.40%||US $40.00||US $100.00|
|4G||0.50%||US $50.00||US $200.00|
|5G||0.60%||US $60.00||US $200.00|
|Other||HEVC||FIXED PER-UNIT RATE of US $0.10|
|802.11||FIXED PER-UNIT RATE of US $0.05|
* The foregoing is for informational purposes only, does not constitute a binding offer, and is subject to additional terms and conditions and execution of a definitive patent license agreement. Pricing is for new licensees - covering sales from January 1, 2020 onward. Handset pricing only. The HEVC and 802.11 rates reflect a discounted royalty rate for taking a license in conjunction with a cellular SEP license.
For qualifying new handset licensees, additional discounts may apply based on duration of the agreement, product volumes, payment timing and structure, special market considerations, and other factors.
Cellular rates are not cumulative – the cellular royalty rate that would apply would be that related to the most advanced technology present on the device. So, if it is a 4G phone (with 3G backwards capability), the royalty rate that applies is the 4G rate.
Example: On a $500 smartphone that implements 3G and 4G standards, as well as 802.11 and HEVC video technologies, our rate per handset would total $1.15 (i.e., ($200 * 0.50%) + $0.10 + $0.05), subject to any additional discounts which may be available.