Well, iSuppli did not mention them. The writer brought it up: "Royalty Payments Not Addressed ... One cost iSuppli's teardowns don't address: Any royalties paid

Well, iSuppli did not mention them. The writer brought it up: "Royalty Payments Not Addressed ... One cost iSuppli's teardowns don't address: Any royalties paid to ARM." He missed the mark - he might have had a point for data formats. I think that licensing costs are borne by the manufacturers (of the final product) for firmware they toss in to decode DVDs, MP3s, etc. Cf. recent TomTom/Microsoft FAT kerfuffle.