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Can't HMRC block Facebook from charging royalties to its UK arm?
Charging royalties for ideas that are obvious or were concocted so long ago that they are already in the public domain — like making a call by touching numbers on your smartphone screen, or fastening your trousers with a zipper — exact a cost but provide no benefit.
San Diego-based Qualcomm makes chips and other components in the iPhone and other smartphones, and Apple has stopped paying licensing fees to Qualcomm via its contract manufacturers because it claims Qualcomm was charging royalties for technology it didn't actually invent.
The legal fight between the two began in January when Apple filed a lawsuit against Qualcomm alleging the chipmaker "has unfairly insisted on charging royalties for technologies they have nothing to do with". Apple claimed, among other things, that Qualcomm withheld $1 billion from the company as retaliation for working with Korean regulators in an investigation against Qualcomm.
But that doesn't mean she thinks governments should profit by charging royalties on their water resources.
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Kasim Alfalahi, vice-president, patent licensing, at Ericsson, said: "Qualcomm is charging royalty rates much higher than other essential patent owners.
Sarnoff believed that RCA should only charge royalties -- never pay them.
"If MP3 is used for free distribution on the Internet, we will not charge royalties," he says.
He also said Microsoft ought to be able to charge royalties for the intellectual property included in its software.
Under the 2004 ruling, Microsoft is allowed to charge royalties for sharing the protocols, based on the level of innovation in the technology.
Last year, McDonald's main UK business earned revenues of £1.53bn from its restaurants, but was also charged royalties of £123m – equivalent to a third of its operating profit.
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