A dose of reality in my opinion
posted on
Oct 25, 2007 10:42PM
Looking at the value of all previous deals as listed below, and averaging the total annual revenues for the 24 companies that have signed deals, PTSC/TPL/PDS has made a total of $196.91M in license fee revenue off of 24 companies with a combined annual revenues of roughly $405B. Before you jump on my argument, I KNOW that annual company revenues are NOT the metric by which license fees are based, but rather amount of infringing products that the company has is, HOWEVER, I think on AVERAGE, it can be used as a very rough guide to determine license values we might get from new signers. Basically, PTSC/TPL/PDS gets about $0.0005 per every dollar gross revenue of an infringing company.
Another way to look at it is they’ve signed companies that range in annual revenues from probably less than $500M to over $90B, a pretty wide variety of company sizes, and over these 24 deals, they’ve averaged $8.2M per deal with $4.1M per deal going to PTSC. If the 460 remaining companies are predominately small companies, I’m wondering how realistic it is to think that the deals will average $10M with PTSC’s share averaging $5M per deal after settlement/court action. I get the impression from many posters here that they expect average deals of much more. I’d like to think so, but it seems more prudent to be very conservative rather than overly optimistic. For this reason, I think it’s better to expect no more than $3M per average deal with $1.5M going to PTSC. Even if that’s the case, 40 deals a year (I think that amount of deals is easily doable if court action / settlement in our favor) would equate to $60M to PTSC in revenue before expenses. Not a bad annual revenue for a 5 person company.
September & October 2007
APC (1.6B Revs) –
DMP Electronics (?? Revs) -
Denso Wave (?? Revs) -
$1.43M between these three deals
August 2007
Lego (1.5B Revs) - $1.0M
July 2007
Bull (1.6B Revs) - $0.5M
March - May 2007
Nokia (53B Revs) -
Sharp (2B Revs) -
Sandisk (3B Revs) -
$43.09M between these 3 deals
February 2007
Funai (3B Revs) - $2.92M
NEC (40B Revs) - $16.0M
December 2006