What is meant by a “reset” in the fee schedule?
A reset means that the per-unit fees are calculated from the quantity one price on a recurring basis. In the case of an annual reset, the royalties are calculated against the number of AAC products sold within a year starting at the quantity one price, regardless of the number of AAC products sold during the previous year. A year does not necessarily begin with the first calendar quarter, but is defined as four consecutive quarters starting with the first quarter for which a licensee reports.
