IP core business model

[Altera_Forum]

How does the IP core business model work? 

 Clearly there is some cost for the R&D to construct and validate the core, produce documentation, test vectors, etc.  Once a customer gets past the trial-stage with a core, what happens? Do they buy a license for that end-product or a per-device license? Is support a 1 time fee or or does the customer buy a time limited support contract? Is core source handed over as part of this transaction?  thanks, Adam

[Altera_Forum]

Over the years sevaral small and large companies have tried to make ago at it of selling IP alone. 

 Most have failed or been absorbed by others. A few continue to make it.  You need to figure out a way to protect your IP, either via encryption, or with some sort of locking method, locking it to a download cable (as Altera does), etc.  Some people sell the IP on a project by project basis, others on a royalty / chip basis. Some include support, others sell as is, and offer extended support for a fee (like the Linux support model).  Still others make the IP free (with very basic functionality) then offer to customize it for a fee.  Some offer one price for encrypted object, and a much larger price for source.  Good luck with your efforts.  Avatar

[Altera_Forum]

The Altera IP cores are licensed on a perpetual basis. The license key is issued for a period of 1 year. During that time, customers receive updates, bug fixes and support. If customers don't elect to renew support, they can continue using the last core version received with the current version of Quartus II. The core version will not necessarily work with future versions of QII. 

 This model is typically used the FPGA vendors for their IP.

[Altera_Forum]

Avatar is right. 

In the ASIC industry, the companies that sold only IP-cores, with few exceptions, failed as a business model. The 1 exception I know of is ARM Ltd. (which is now joined with Artisan Components.)  Perhaps the FPGA-developers will prove more successful with third-party companies who only do IP. (So far, they haven't.)

[Altera_Forum]

Thats a tad depressing. I had thought that perhaps those long lists of IP core vendors on both the Altera and Xilinx site indicated a successful business model. 

 Are companies really rolling their own version of everything they use e.g. H264 encoders, interfaces, etc?

[Altera_Forum]

May be i can also add some Info.  

 Recently i also came to know about new Software IP trading business model site. www.ipsupermarket.com (http://www.ipsupermarket.com). where technology companies list their Soft IPs/Codecs for sale or license and buyers find and procure if they need  Along with that many other portals such as Design-reuse.com. designwin.net or chipestimate.com already have huge IP/Codecs catalog from various companies. and have the similar business model

[Altera_Forum]

I endorse what Keanu13 has written. There are successful companies out there selling IP cores, although the most successful of these are mostly selling into the ASIC/IC markets, for example the MIPS ARM core. 

 Companies increasingly look to outside suppliers to provide proven IP cores, for example SATA, HDMI, USB, PLLs, ADC and DAC, leaving them to concentrate on their core expertise. The same is true, but to a lesser extent, for FPGAs, (note the cores I mention above usually have an analogue component, but digital only cores are also sold, e.g. I2C, NTSC/PAL encoder/decoders, audio sample rate converters etc.).  If you are looking to provide IP cores for Altera FPGAs the most important first step, (after designing the core), is to obtain the encryption software so your core cannot be copied. You can then set the parameters on that encryption, length of time, machine specific, device specific etc.

[Altera_Forum]

So far when we talk about IP, likely we assume they are designed/supported/presented by an established firm and therefore are expensive and normally require careful and lengthy licensing neogotiation. However, IPs can be generated by design individuals and small firms. IPs can be small but to the point, not expensive but of great value to others.  

 www.ecvale.com (http://www.ecvale.com) is a site promoting this kind of low-profile and highly valuable IPs for individuals and small firms. This can be an interesting branch for IP business model.

[Altera_Forum]

Hi, 

 I have worked in the IP industry and I am pretty sure that a "low profile lP" as you call it does not make a new industrial product. reasons:   1) any firm wants assurance and after service 2) wants the code to work in their environment 3) small jobs are left for in-house engineers 4) small jobs need to be tailored for a given project(IP may eventually have to support settings and have a GUI etc.) 5) presence of constraints of own customers and any standards between them.   Exceptions are modules for students or unusual niche forgotten in the market.