Royalty stacking is the concept that a product which supports multiple standards may pay individually for each, which builds into a “stack” of cumulative royalty.
- Cellular standards typically dominate connected products
- Additional technologies such as GPS, MP3, AAC, H.264 and 802.11 all require their own licenses
- Operating Systems, software and apps may require further licensing
While the industry and regulators focus on cellular standards, the implication is clear – in terms of royalty exposure it is important to understand the full set of technologies and rates that apply across the entire product in order to work out the impact on the Bill of Materials (BoM).