What is the obligation of a Licensee to pay royalties?
Every patent in the Portfolio is essential to the 1394 Standard, meaning that one or more of its claims is infringed by compliance or implementation. Therefore, Licensees pay royalties with respect to their products using 1394 technology that, but for the 1394 Patent Portfolio License, would infringe one or more Portfolio patents in the country of manufacture or sale. The royalty is US $0.25 for each 1394 Royalty Product, meaning a “Finished Product” (without regard to the number of components in the product that incorporate the standard) offered for Sale in an unmodified and uncombined form to an End User. There are no fees to join, no minimums and no certifications.
