4G Mobile Device Royalties

With mobile operators increasingly rolling out and expanding LTE networks, there is a drastic increase in the number of devices with LTE. Some mobile operators are even requiring LTE to be included in most of the devices they sell through their own channels. Naturally, this means that revenues for intellectual property royalties on 4G devices are increasing quickly. These royalties are more straight-forward for handsets, but are negotiated in a more complex way for non-handset devices. There are some data devices such as media tablets where the value of having mobile is understood and worth the additional costs and royalties. Other device types such as mobile consumer electronics devices have struggled though, where even Wi-Fi has not yet proliferated. As mobile-enabled cameras come to market again and portable game devices are now including cellular connectivity, the next step is enabling LTE into these devices. This report goes over the considerations and ways that non-handset devices have 4G royalties applied to them.

This report quantifies both WiMAX and LTE rates and royalty revenues for mobile devices with WiMAX or LTE, which are included for each mobile device category.  These five-year forecasts include handsets, media tablets, laptops/ultrabooks/netbooks, external cellular modems, and mobile consumer electronics devices.  The mobile consumer electronics category is comprised of portable gaming devices, cameras, camcorders, and e-readers.  The forecasts also include the mobile device royalty attach point percentages for each device category.

Table of Contents

  • Top Line Forecast
  • 1. EXECUTIVE SUMMARY
  • 2. INTELLECTUAL PROPERTY ROYALTIES BACKGROUND
    • 2.1. The Role of a Royalty: Accessing Other Companies' Intellectual Property
    • 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 vs. 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
    • 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
    • 2.27. Determining Patent Ownership
    • 2.28. Patent Pools and Patent Protection Groups
      • 2.28.1. OPA
      • 2.28.2. Via Licensing
      • 2.28.3. Next Generation Mobile Networks Alliance
      • 2.28.4. Sisvel
      • 2.28.5. MPEG LA LLC
    • 2.29. Patent Pool Pros
    • 2.30. Patent Pool Cons
    • 2.31. Damage Assessment
    • 2.32. International Trade Commission
    • 2.33. America Invents Act
  • 3. MARKET ISSUES CONCERNING PATENTS, LITIGATION, AND ROYALTIES
    • 3.1. IP Rights versus Antitrust Concerns
    • 3.2. Royalty Attach Points on Mobile Devices
    • 3.3. Royalty Attach Points Are Not on a Tangible Part of the Device
    • 3.4. Royalty Monetization Models
    • 3.5. Increased Focus on Patent Strategies
  • 4. MARKET FORECASTS
    • 4.1. Summary of Findings
  • 5. Company Directory
  • 6. Acronyms
  • 7. Links to Related Research

Charts

  1. Total Mobile Device Royalty Revenue by Device Type - Total 4G, World Market, Forecast: 2011 to 2017
  2. Total Mobile Device 4G Royalty Revenue by Device Type, World Market, 2017
  3. Total Mobile Device Royalty Revenue by Device Type, Total 4G World Market, Forecast: 2011 to 2017
  4. Mobile Device Royalty Attach Point Percentages by Device Type World Market, Forecast: 2011 to 2017
  5. Weighted Average Mobile Device Effective Royalty Rates, WiMAX World Market, Forecast: 2011 to 2017
  6. Total Mobile Device Royalty Revenue by Device Type, WiMAX World Market, Forecast: 2011 to 2017
  7. Weighted Average Mobile Device Effective Royalty Rates, LTE World Market, Forecast: 2011 to 2017
  8. Total Mobile Device Royalty Revenue by Device Type, LTE World Market, Forecast: 2011 to 2017
  9. Total Mobile Device Royalty Revenue by Device Type, Total 4G World Market, Forecast: 2011 to 2017
  10. Total Mobile Device Royalty Revenue by Device Type, Total 4G
  11. Mobile Device Royalty Attach Point Percentages by Device Type
  12. Weighted Average Mobile Device Effective Royalty Rates, WiMAX
  13. Total Mobile Device Royalty Revenue by Device Type, WiMAX
  14. Weighted Average Mobile Device Effective Royalty Rates, LTE
  15. Total Mobile Device Royalty Revenue by Device Type, LTE
  16. Total Mobile Device Royalty Revenue by Device Type, Total 4G
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Research Information

Price
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Publish Date
4Q 2012
Code
RR-4GRYL-12
Research Type
Research Report Report
Pages
42