LIFT: Accelerating Market Penetration and Levelling the Playing Field

Today we announced the launch of a new pool on Wi-Fi 6 technology. One breakthrough aspect is the Licensing Incentive Framework for Technologies (LIFT), which is a structured payment scheme that eliminates the competitive disadvantage that might be caused by being one of the first companies to license a new technology: to explain, companies that take a license for a technology first may have a higher cost of goods than competitors that don’t take the license.

Sisvel’s new LIFT scheme addresses this by adjusting royalty payments based on the percentage of the market that is licensed. You can defer most of your payments unless and until when your competitors also pay.

Specifically, the commitment to pay is progressive: if only a small portion of the market is licensed, most of the liability is deferred until competitors actually pay. What isn’t paid immediately is added to a basket of unpaid liability which is also paid in accordance with the market penetration and is discounted and depreciated over time. The longer it takes for the pool to penetrate the market, the longer you can defer your royalties’ payments.

With LIFT, you enjoy the protection and certainty the license provides, but pay only a fraction of the due royalties unless and until competitors also take the license. You are protected legally and financially.

For more on LIFT, check out our website.

Sisvel is committed to creating licensing terms that work for patent owners and technology implementors, that help shorten technology time to market, accelerate market penetration, and level the playing field. LIFT is just the latest example of this commitment.