Licensing Agreements Revenue Model
Each of Hop-on’s patent and licensing agreements contain a royalty rate when Hop-on enters the initial patent licensing contract. Patent royalties are payments made by the licensee to the licensor (Hop-on, Inc) for the use of the patent. Hop-on’s niche strategy is to take a percentage, or fixed fee, of the revenue generated by the patent. The purpose of “patent royalty rates” is to ensure that the inventor is adequately compensated for the use of their intellectual property.
The licensee can use the invention to boost their business activities, without having to spend the development and manufacturing costs and time, inventing a new product or technology. By setting royalty rates, as a percentage of revenue generated, both Licensee and Licensor, benefit fairly. The licensor is compensated in line with how much value their patent brings, and the licensee’s payments are proportional to how much revenue the patent is generating. In addition, the relationship that is formed though Licensee agreements lead to additional contracts and partnerships.
Hop-on, Inc is utilizing licensing agreements with essential patent holders to create revenues where international conglomerates have failed or are tied up in litigation. International conglomerates have failed left and right to properly obtain licenses of high tech complex technologies, and in turn their failure to negotiate in good faith or pay royalties to the essential patent holders, has resulted in billions of dollars invested in products with no ability to sell those technologies in litigious countries that protect these patented ideas. Hop-on, Inc’s Essential Patents Portfolio, in and of itself, is a vital and expansive portion of our overall success and growth.
NOKIA
Hop-on, Inc. currently holds the key patent license agreement with Nokia Corporation, to manufacture, use and sell licensed H.264/AVC decoding products.
These decoding products utilize fundamental and innovative contributions that reduce the amount of digital data needed to represent video. In addition, these innovations allow video to be transmitted over communications networks with high quality and dramatically lower bandwidth requirements. Each of these significantly reduce the size of video files, allowing more efficient storage on mobile devices and to effectively stream video over communications networks.
In addition, Hop-on, Inc. has existing relationships with wireless carriers worldwide. Industry consolidations, as well as IPR and security issues experienced by Huawei, ZTE, and others have changed the entire landscape for enterprise and consumer markets within the mobile and computing industry.
