Let's take a stab at comparing Nanosys cash sale v
Post# of 22453
This example assumes both models use the same amount of QD and
the end product is priced at $1000.
Let's say an OEM needs 1 gram of QD total for each display at $1000 each,
1M displays = 1M grams x $12.15gram = Nanosys earns $12.15M dollars cash sale price
QMC opted for a license and royalties model. We don't know the percentage because it was redacted in the contract. This type of deal protects QMC against the price of quantum dots falling and at the same time pays QMC on the value of the end product.
Using royalties, if an OEM makes 1M QDLED Displays @ $1000 each, at a 5 percent royalty rate QMC earns $50M. In fact, any royalty greater than 1.2 percent earns more money than Nanosys. Five percent is a nominal royalty rate for the example.
This is very simple illustration and pure speculation on all the numbers, but shows the principal difference between the two methods of payment