Debunking the Smallest Salable Unit Theory

July 2015

Manufacturers of devices such as smartphones need licenses to intellectual property held by innovators. Naturally, as profit-maximizing entities, they prefer to acquire the licenses they need at the lowest possible cost—that is, for the smallest royalty payments, or even royalty free. To achieve this goal, companies favoring low or no royalties are busily advocating a number of legal theories and policy changes around the globe.

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