There appears to be some confusion between a single payment license fee and future royalties.

Currently companies signing a MMP Portfolio license make one payment which covers past and future use, which bear no relationship to the value of goods produced/to be produced.

Those that argue for ongoing royalties, myself included, would prefer a single payment for past use/license and then an industry average percentage paid on shipped products. This is not the same as saying pay over 10 years, instead of a lump sum.

It's too complex and costly, the naysayers cry. Wrong. Every quarter, check the licensee's filing and invoice them for the agreed percentage royalty rate on total revenues(Does ARM have a problem collecting fees this way?).

In a prior post industry royalty rates were given: up to 20% on finished goods. So, agree a fixed percentage rate with the licensee(it need not be the same for each company, obviously), this can then be factored into their pricing policy and every 3 months PTSC will receive a royalty check from a growing licensee base. This can be used by the Street to evaluate future income and a viable P/E ratio.

As the market grows, so does license income.

Be well