RICV could thus be objectively computed for every one-time or royalty-bearing IP licensing deal to estimate the sales revenue that firms generate from IP commercialisation.
For each site, the local partner pays a one-time premium and a royalty fee based on site content that the partner sells.
For instance, one basic question was how royalties should differ from a song streamed on a one-time basis, versus one sold to be kept on a hard drive, versus one that could be copied to portable devices.
The licensees offering one-time payments avoid paying royalties or licensing for defensive reasons, while the others making upfront and royalty-bearing payments hope to increase their upside as their sales are expected to be robust.
In June, the Finnish cellphone maker Nokia settled a two-year global patent fight with Apple over smartphone technology through a licensing agreement that would commit Apple to a one-time payment and regular royalties.
Florian Mueller, an independent specialist and blogger on patent battles, said that "the deal structure – a one-time payment as well as running royalties – suggests a fairly good outcome for Nokia".
Under the settlement agreement, Apple will pay a one-time fee as well as on-going royalties to license patents from the Helsinki, Finland-based mobile phone maker.
The portion allotted in lieu of upfront and/or royalty payments would be taken in as RICV in the year of transaction dOften, we deal in (a) one-time payments or (b) upfront and royalty-bearing payments.
One of the lawsuits alleges that the difference in the one-time bonus payments, plus the difference in royalty payments, "could mean billions of dollars" over the life of the oil field.
2) Lease payments which may include the one-time initial bonus, land rental – which generally ceases when royalty payments start, and production royalties for a specific % of the value of gas produced.
