FAQ

Q1. Where do I find the patents that are included in the 1394 Patent Portfolio License?
A1. The patents in the 1394 Patent Portfolio License are identified in Attachment 1 to the License agreement.

Q2. What is the obligation of a Licensee to pay royalties?
A2. 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.

Q3. When does a Licensee pay?
A3. Coverage is provided for “Finished Products” from January 1, 1998 forward, but royalties are payable only on “Finished Products” from October 1, 1999 forward. Back royalties (meaning royalties that accrued from October 1, 1999 to the execution date of the License) are due within 30 days of the execution date (with interest if the execution date is more than 90 days after 15 November 1999). Royalties from the execution date forward are paid semiannually (within 60 days of December 31 and June 30, unless otherwise agreed).

Q4. What is the purpose of the words "unmodified and uncombined form" in the definition of "Finished Product(s)" in Section 1.6?)
A4. These words help determine the "Finished Products" covered by the License on which (see "1394 Royalty Products" defined in Section 1.15) a royalty is payable. A product is "Finished" at the point where no further modifications or combinations are made and it is made available to the end user in such form. Put another way, the point at which the last modification/combination is made is the point at which a product is "Finished," and the Licensee that makes the last modification/combination, i.e., puts it into the form in which it is ultimately made available to the end user, is responsible for paying the applicable royalty under the License. (Thus, the definition of "Finished Product" does not mean that a Licensee is prevented from modifying or combining a product and in fact anticipates that prior modifications or combinations have been made before a product is considered "Finished.")

Q5: How may a patent holder become a Licensor to the 1394 Patent Portfolio License?
A5: Any party that believes it has patents which are essential to the 1394 Standard, and wishes to participate in the 1394 Patent Portfolio License upon successful evaluation, is invited to submit them for evaluation and inclusion. Click here to request a copy of the terms and procedures governing the patent submission process.