It's not about being stand alone, it is likely Mercedes needs MegaChips's help, to integrate the BrainChip IP into their A.I. solutions (remember, that they have also just helped BrainChip, with the backend design of AKIDA1500).
Remember from the Strategic Partnership agreement with MegaChips.
"By partnering with BrainChip, MegaChips is able to quickly and easily maintain its industry innovator status by supplying solutions and applications that leverage the Akida revolutionary technology in markets such as automotive, IoT, cameras, gaming and industrial robotics"
Now sure, Mercedes could licence the IP directly from us, or they could licence it through the party designing their ASICS (assuming it's MegaChips).
Same same really, but makes more sense, just to do it through MegaChips.
"Hey there MC, we've just licenced BrainChip's IP, which you already have a licence to use, can you design our chips, using said IP?"
The above doesn't sound like a likely scenario..
Remembering, that regardless, Mercedes has to pay the licencing fee, for our IP and any other IP, being used.
We know Mercedes is not shy about mentioning us, so it's not for reason of keeping the association under wraps, as it "may" be with other companies.
@Foxdog's and @alwaysgreen's wish for a disclosure of the number of licence agreements, through MegaChips (or Renesas, but they only licenced 2 nodes) is a Great idea and someone should ask it at the AGM, or even through Company channels.
I don't see any reason at all, why such a figure, couldn't be revealed?..
Whie we're talking MegaChips, a quick refresher:
BrainChip (ASX:BRN) clarifies MegaChips contract revenue arrangements
ASX News, Technology
ASX:BRN MCAP $768.6MJosh SmithEditor, Companies & Marketsjoshua.smith@***************.com.au25 November 2021 11:22(AEDT)
- BrainChip (BRN) opens green on the ASX after releasing some revenue forecasts relating to its MegaChips deal announced earlier this week
- Brainchip on Monday announced the deal to license its Akida tech to external MegaChips customers and today breaks out of a trading halt to provide more contract details
- As it stands, BrainChip is expecting to table aggregate revenue of US$2 million (A$2.8 million) through to December 31, 2022, under the MegaChips deal
- However, the company says many potential revenue streams — such as royalty arrangements and proof-of-concept project fees — are not yet quantifiable
- Shares in BrainChip open 5.6 per cent higher at 66 cents each this morning
The company on Monday announced it had struck a deal with Japan-based semiconductor specialist MegaChips for an intellectual property (IP) licence over BrainChip’s Akida processor technology. Under the deal, MegaChips can integrate BrainChip’s tech into external customers’ system-on-chip designs for a licensing fee and royalties arrangement.
Today, BrainChip has broken out of a trading halt to announce some additional details regarding the revenue arrangements around the contract.
The company told investors some terms of the MegaChips agreement were subject to “strict confidentiality provisions” between the two companies, meaning some aspects of the deal are still shrouded in mystery.
BrainChip said it was expecting to table aggregate revenue of US$2 million (A$2.8 million) through to December 31, 2022, under the MegaChips deal. However, the company said some potential revenue streams under the contract were not yet quantifiable.
For example, on top of the standard licensing fee, BrainChip also stands to pocket royalties on the sale of products using the Akida technology to MegaChips customers.
The royalties are to be calculated as a percentage of the net sales price of products that have been designed and manufactured to include the Akida tech, though the percentage will be based on the volume of products sold.
Further, BrainChip said it was charging license fees for application-specific product development and project fees for proof-of-concept projects with MegaChips customers.
On top of all this, BrainChip expects to receive payments for support services and software licensing associated with its Akida IP.
While the nature of these additional potential revenue streams means accurate revenue forecasts might be difficult, BrainChip said in any case, the MegaChips deal was “highly significant” to its growth strategy given the access the agreement gives BrainChip to MegaChips’ global customer base.
There has been a lot of speculation about whether we would get 10 cents or 30 cents royalty per product, but, apparently in the MegaChips deal, it is a percentage of the sales price of the product, on a sliding scale, ie, the more the customer sells, the smaller the percentage.
As an example, assume there is a high volume $10 product and a lower volume $100 product.
So, according to the sliding scale (set according to volume of sales), if it's 2% for the $10 product, we get 20 cents a product, whereas if it's 3% of a $100 product, we get $3 per product.
Remember, these are just example royalty rates and sales proces, not the real thing.
Apparently, this is the model to which ARM wishes to move.
PS: What's 2% of a Mercedes?