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We provide them with quite a bit more than a patent licence," explains Steve Altman, Qualcomm's president.
It is harder still to make securities out of such things as music royalties and patent licence fees.Most traditional securitisations involve cash flows that have been earned, but are not yet received; the main risk is that the cash will flow earlier or later than promised, or not at all.
Microsoft has revealed Chinese smartphone maker ZTE has become the latest firm to sign a patent licence deal linked to its use of the Android and Chrome operating systems.
According to the Foss Patents blog, which tracks such matters, this is the nineteenth announced patent licence deal Microsoft has secured since 2010 from companies whose products use Google's mobile and laptop operating systems.
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For IBM, for example, the majority of its intellectual-property revenue comes from the sale of know-how, not patent licences alone.
Also, ARM understood that it needed to offer a lot more than just patent licences, such as documentation and support for its licensees.
This is harder to do with royalties, film revenues and patent licences: One rock star's royalty stream differs from another's in a way that two 25-year mortgages rarely do.
In contrast, in Japan, income relies largely on income from patent licencing.
But the year-long US case has involved some of the biggest damages claims, and is likely to shape the way patent licences are handled in the future.
Denis Waelbroeck, competition partner at the lawyers Ashurst in Brussels, said: "While such a fine will no doubt do wonders for the commission's image as a tough regulator, some might consider it unfair, not least since the commission refused to tell Microsoft what would be a 'reasonable' amount to charge for patent licences despite being asked several times".".
Philips Hits 100K Patents, Licence Income Rises.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com