Mobile Device Royalties

GSM, WCDMA, and LTE

Research Report

Pages
41
Deliverables
Released
4Q 2011
Product Code
RR-RYL-11
Price
Login

Intellectual property, patents, and patent litigation have increasingly come up as breaking news stories in the mobile wireless world. Patent litigation is being used to not only defend intellectual property, but also as both an offensive and defensive strategy between competing companies. Over the last several years, patent litigation activity seems to have increased exponentially. Companies have increased their focus on their patent portfolios as a way to maximize shareholder value. This report covers the activity and issues of IP, royalties, and litigation around handsets - mostly smartphones - in the industry. It takes a look at what the effects of the America Invents Act and the resulting changes around filing and contesting patents will be when it takes effect in 2013. The market sizing in the report is focused on WWAN royalties on handsets, and of that it specifically sizes 3GPP-related handsets. For each of GSM, GSM/WCDMA, and GSM/WCDMA/LTE handsets, this research provides the royalty rates by patent portfolio strength, the average WWAN royalty rates, the average selling prices of the handset for that WWAN technology combination, and the resulting WWAN handset royalty revenues.

What Questions Does This Report Answer?

  • What effect will the America Invents Act have on large and small companies filing patents in 2013?
  • What is happening between Apple and Samsung? Is Apple pushing its luck in certain countries?
  • What have patent pool companies been up to, and will they be successful?
  • What are the total revenues paid for handsets with GSM, WCDMA, and LTE broken out by 2G, 3G, and 4G handsets today and in 2016?
  • How quickly will the bulk of the WWAN patent royalties shift from GSM/WCDMA (2G/3G) handsets to GSM/WCDMA/LTE (2G/3G/4G) handsets?
  • Are GSM (2G) handsets still relevant for WWAN royalty revenues? How quickly are they falling, and what are the reasons other than lower shipment numbers?

Who Needs This Report?

  • WWAN chipset vendors
  • Handset vendors
  • Mobile device vendors
  • Mobile OS vendors
  • Mobile network operators
  • Patent pool companies

Table of Contents

  • Executive Brief

  • Top Line Forecast
  • Drivers
  • Inhibitors
  • Summary and Strategic Recommendations

Section 1.
EXECUTIVE SUMMARY


Section 2.
BACKGROUND ON INTELLECTUAL PROPERTY ROYALTIES

2.1. The Role of a Royalty: Accessing Other Companies' IPs
2.2. Why Patents?
2.3. Licensing and Royalty
2.4. Royalty Payment Structures
2.5. Cross-licensing
2.6. Royalty Benchmarking
2.7. What Are Essential Patents?
2.8. Patent Quality
2.9. Patent Disclosure
2.10. Patent Thicketing
2.11. Proportionality Versus Value
2.12. The Nature of Royalty Negotiations
2.13. Royalty Dispute Resolution
2.14. Grant-back
2.15. License Stacking
2.16. Transparency
2.17. Fair, Reasonable, and Non-discriminatory Terms (FRAND)
2.18. Aggregated Reasonable Terms
2.19. Benchmarked Terms Based on Transparent License Terms
2.20. Litigation
2.21. Non-manufacturer License Holders
2.22. Non-practicing Entities, or "Patent Trolls"
2.23. Balancing Royalty Levels with Market Development
2.24. The R&D Versus M&A Equation
2.25. Patent Expiration and Expiration Rates
2.26. Royalties, Patents, and Innovation

Section 3.
CURRENT LITIGATION ISSUES

3.1. Patent Pools and Patent Protection Groups
3.2. OPA
3.3. Via Licensing
3.4. NGMN
3.5. Sisvel
3.6. MPEG LA
3.7. Allied Security Trust
3.8. Patent Pool Pros
3.9. Patent Pool Cons
3.10. Damage Assessment
3.11. International Trade Commission
3.12. IP Rights Versus Antitrust Concerns
3.13. America Invents Act
3.14. The Effect of Patent Litigation on R&D Style
3.15. Notable Litigation in Mobile Device Industry
3.16. Apple
3.17. Samsung
3.18. Microsoft
3.19. Acacia Research (SmartPhone Technologies) Versus Amazon
3.20. Intellectual Ventures Versus Motorola Mobility
3.21. Nortel Network's Patents
3.22. Ericsson

Section 4.
INTELLECTUAL PROPERTY ROYALTIES LANDSCAPE

4.1. Methodology
4.2. GSM Handset Royalties
4.3. GSM/WCDMA Handset Royalties
4.4. GSM/WCDMA/LTE Handset Royalties

Section 5.
COMPANY DIRECTORY


Section 6.
ACRONYMS

6.1. Sources and Methodology
6.2. Notes




5 Charts
  • Total GSM-LTE Handset Royalty Revenues: World Market, 2010 to 2016
  • Total GSM-LTE Handset Royalty Revenues
  • GSM Handset Royalty Revenues
  • GSM/WCDMA Handset Royalty Revenues
  • GSM/WCDMA/LTE Handset Royalty Revenues
5 Figures
  • Example 1 of Patent Litigation and Agreements Charts in the News
  • Example 2 of Patent Litigation and Agreements Charts in the News
  • Example 3 of Patent Litigation and Agreements Charts in the News
  • Example 4 of Patent Litigation and Agreements Charts in the News
  • Microsoft's Patent Licensing and Litigation Around Android OS