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Sonics: IP Pricing and Protocols

Thursday, February 27th, 2014

 

It makes it worthwhile to show up for work on days when you get to have a conversation with people like the folks of Sonics, a System IP vendor based in Silicon Valley. Articulate and knowledgeable, they have a nuanced understanding of how the IP business works, its challenges and opportunities.

When I spoke to them last week about my ongoing project to assemble IP for the chip in my Dick Tracy keychain, President & CEO Grant Pierce and VP of Operations Raymond Brinks were both on the call. We started by talking about how IP is priced.

Per Pierce: “The conditions under which various customers buy and use IP can be quite different. We have some customers who are fairly sophisticated. We sell [such customers] licensed IP, offer some initial training, and then off they go. After that, apart from an occasional email, we have little contact with them. There are customers, however, who are opposite in the extreme.

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