Synopsys has a problem. Per Norm Kelly, speaking at the ESD Alliance panel on September 14th in Silicon Valley, Synopsys loses fully a third of the revenue they’re owed each year for their vast catalog of IP because it’s stolen by Cheaters and used without paying any licensing or royalty fees.
Kelly said Synopsys earns about $200 million per year selling IP, and loses another $100 million to theft. Cheaters are a real problem, he lamented, and as Director of License Compliance for Synopsys he should know. Kelly did not have the floor to share these laments, however, until Warren Savage, GM of IP at Silvaco, opened the meeting.
Speaking from the podium as moderator of the evening’s discussion, Savage said the real problem is the bumblers, those designers and companies who lose track of licensing obligations for IP that was either purchased some time ago, or was brought into the design effort on a data stick fished out of the pocket of someone who’s joined the organization through a poorly managed M&A.
In other words, when Chuckles the Clown uses IP, often as not he doesn’t realize some monies are owed to the third-party IP vendor who created it in the first place. Savage offered this statistic: On an average SoC today, there are 150 to 200 blocks of IP, but only a small percentage of those blocks are actually paid for.