What percentage of AMD and nvidia profits are due to IP?

[Anarchist420]

Stephan Kinsella guestimated that Micosoft was 75% and that apple was 10%. Don't forget that he's pretty damn bright.

I've also heard a really bright software programmer say that patents/copyright really distort the GPU market and keep out competition... I agree with him.

I'm not sure how much of nvidia and AMD are due to IP, but I'd guess at least 1/4 (but not more than 60%) of the profits of each are due to IP, maybe a little bit higher for AMD. The GTX780 hardware is good from what I've heard, the stock cooler looks good, but the drivers kind of suck and it's really expensive... I'm going to buy one soon since I'll have enough saved up from selling stuff.

I just wish nvidia would make their drivers open source instead of treating pc gamers like little baby console gamers.

 

[KingFatty]

When you say "due to IP" what do you mean?

Are you asking about income from licensing AMD/Nvidia technology to other companies, where those fees are just paying for the license right and so it's 100% due to IP?

Or do you mean, AMD/Nvidia sell their own GPUs that have patented technology, so the sale of their own AMD/Nvidia GPUs is from IP because without that IP protection, AMD/Nvidia couldn't have sold their own card?

IP is used everywhere, for a company's own products and for licensing technology to other companies. It's possible that AMD/Nvidia owns patents and technology that they don't even use themselves, and just license it or let that patent sit on a shelf collecting dust.

 

[Anarchist420]

When you say "due to IP" what do you mean? Are you asking about income from licensing AMD/Nvidia technology to other companies, where those fees are just paying for the license right and so it's 100% due to IP? Or do you mean, AMD/Nvidia sell their own GPUs that have patented technology, so the sale of their own AMD/Nvidia GPUs is from IP because without that IP protection, AMD/Nvidia couldn't have sold their own card? IP is used everywhere, for a company's own products and for licensing technology to other companies. It's possible that AMD/Nvidia owns patents and technology that they don't even use themselves, and just license it or let that patent sit on a shelf collecting dust.

I was asking compared to if there were no IP at all, so I mean globally. I'm thinking that intellectual privileges granted to nvidia and AMD have prevented competition.

 

[DaveSimmons]

With no IP laws at all I think your 10% Apple estimate is very inaccurate. Apple product sales would fall by much more than 10% if anyone could legally pay Foxconn to make exact copies of every Apple product to sell at a 25% - 50% lower price.

Also, as we've discussed in your other no-IP-law threads, private R&D makes no sense if every competitor is legally able to copy the results without paying any fees.

TSMC would take the nv and AMD GPU designs, say thanks, crank out the chips and sell them for less than nv and AMD could afford to since TSMC had no R&D costs to recover.

So, short answer: 100%

 

[ozzy702]

With no IP laws at all I think your 10% Apple estimate is very inaccurate. Apple product sales would fall by much more than 10% if anyone could legally pay Foxconn to make exact copies of every Apple product to sell at a 25% - 50% lower price.

Also, as we've discussed in your other no-IP-law threads, private R&D makes no sense if every competitor is legally able to copy the results without paying any fees.

TSMC would take the nv and AMD GPU designs, say thanks, crank out the chips and sell them for less than nv and AMD could afford to since TSMC had no R&D costs to recover.

So, short answer: 100%

^ This.

 

[KingFatty]

I was asking compared to if there were no IP at all, so I mean globally. I'm thinking that intellectual privileges granted to nvidia and AMD have prevented competition.

Ah, this is a hard question.

Would a company be willing to invest a lot of money on researching and developing a product that is not protected by IP laws?

How can we answer this question? If you go back in history, IP laws have been around for centuries. Yes it's true that a company may be unwilling to spend on R&D when there are no protections, and you just will get a big fail and nobody will develop the product.

However, there are other forms of 'protection' like DRM and other things, but those also cost money to develop.

But think of all the people who are willing to say write a book for free. They do it for the love of it, and don't care if people copy it, that just increases their fame and reputation. Would there be corporations willing to invest in R&D if a chinese company could copy their idea freely, without having to spend on any R&D?

 

[ShintaiDK]

High R&D cost heavy segments got their own barriers. So for AMD and nVidia its not much. However for companies like ARM, Qualcomm and the like. It would mean utter disaster.

But without IP, who want to develop. It would get a blob of leechers.

 

[Anarchist420]

But think of all the people who are willing to say write a book for free. They do it for the love of it, and don't care if people copy it, that just increases their fame and reputation. Would there be corporations willing to invest in R&D if a chinese company could copy their idea freely, without having to spend on any R&D?

If I'd the money and the brains I'd probably start a graphics processor company and just fight the patent system because AMD's and nvidia's drivers aren't good.

How can we answer this question?

We can only guess.