I fully agree, but as Hacker News is a hotbed of pedantry, I must point out that a royalty of $1 per device isn’t ”taking $1 out of your bottom line”: it’s taking $1 out of your unit contribution, and simply adding all those dollar-per-unit x units back in does not add number-of-units$ back into your bottom line (because of tax effects).
Also, forfeit and bulk contracts mean that firms pay less than unit cost per unit, but probably don’t have the flexibility of starting to save right away as they gradually phase away. Also, the reaction by existing IP owners (ARM?) will be punitive, i.e, will involve hiking residual amounts on those who adopt a policy of moving away, on the pretext of low units, and with the hidden but transparent aim of favouring producers that are staying ’faithful’ to them.
Also, forfeit and bulk contracts mean that firms pay less than unit cost per unit, but probably don’t have the flexibility of starting to save right away as they gradually phase away. Also, the reaction by existing IP owners (ARM?) will be punitive, i.e, will involve hiking residual amounts on those who adopt a policy of moving away, on the pretext of low units, and with the hidden but transparent aim of favouring producers that are staying ’faithful’ to them.
Just my $0.02.