Letter to the editor: IP model a mess (Timothy Llewellynn, Anagram Technologies)

(08/16/2007 11:18 AM EDT) -- EE Times

I received a plethora of e-mails regarding my recent article, entitled "Opinion: Semi IP sector is a lost cause"

Then, I asked for the IP vendors themselves to respond to a set of questions. Here's one letter to the editor:

Editor,

I'd like to comment on your recent ''Semi IP sector is a lost cause'' article. I agree with your comments but there is more to the story and more importantly why is it difficult to make money in semi IP?

If you look at IP it has a nice story. Moore's Law creates the designer productivity gap and drives a need to license in order to build new products. This can be seen in a 15-25 percent CAGR over the last 10 years. Secondly if you amortize IP development costs over many licensees, the price to access specific technologies is greatly reduced, spurring innovative new applications and designs.

So then why is selling IP like selling dog food at the movie theatre?

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