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These royalty payments were built into the cost of the goods.
These royalty fees dramatically lowered UK taxable profits so that the company's eventual tax charge for 2015 was £56m.
"What these royalty rates do is cripple a business just getting its start," Lipset said.
Advertising from audio and banner ads cannot generate even a sizable fraction of these royalty obligation.
These royalty trusts are not like oil exploration companies that expend monies searching for new oil reserves.
Adding Foxconn to that list will give it a huge boost to these royalty payments, an already huge sum in 2011, Microsoft was estimated to be making more from patent royalties from phone makers than its own smartphone business.
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These royalties will be paid in perpetuity.
Industry has not complained about the payment of these royalties.
One industry joke calls the flow of these royalties a "river of nickels".
Thanks to a Luxembourg tax ruling, these royalties wash straight through AEHT, untaxed.
These royalties are expected to top £12m ($19m) a year.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com