Longhorn IP publishes US, EU and China royalty rate schedules for portfolio acquired from ZTE

Just over two months ago, the IAM Market Knowledge Centre reported on Texan NPE Longhorn IP’s acquisition of several patents from an unnamed Chinese telecoms company.

Earlier this month, IAM exclusively revealed the assignor of those patents to be none other than ZTE – one of China’s top two telecoms players alongside fellow Shenzhen-based firm Huawei, and among the country’s biggest smartphone vendors.

According to IAM, the assignment was executed at the start of May, with ZTE transferring a portfolio including four US-issued patents to Longhorn subsidiary Ox Mobile Technologies LLC. The portfolio includes assets related to the 4G/LTE wireless standards with worldwide coverage, as well as China-only assets related to smartphone implementation.

It is noteworthy that Longhorn has published its asking royalty rates for licences to the Ox Mobile portfolio, with the following statement, on its website:

Ox Mobile Technologies LLC is committed to offering a license on a Fair, Reasonable, and Non-Discriminatory (FRAND) basis to interested parties… Past sales are licensed at the Standard royalty rate, while estimated future sales are licensed at the Compliant royalty rates, subject to volume discounts and a cap on total royalties. A time-limited additional discount is also available for early adopters.

Of particular interest is the fact that Longhorn is offering lower rates for prospective licensees in China. This follows the lead set recently by the likes of Via Licensing and Ericsson, which have adjusted their rates for manufacturers in emerging market economies, or those whose products sell at lower price points. The royalty rates for the Ox Mobile portfolio, as published by Longhorn, are here:

Type of sale

Volume sold until Jan 2027

FRAND unit royalty rates ($)

United States

European Union

China

Standard

Any (no limit)

0.10

0.10

0.05

Compliant

0-5,000,000

0.08

0.08

0.04

5,000,001-20,000,000

0.06

0.06

0.03

20,000,001-50,000,000

0.04

0.04

0.02

50,000,000+

$2.50m fully paid-up licence

$2.50m fully paid-up licence

$1.25m fully paid-up licence

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