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In 1990 and 1991, approximately 500 foreign OEM’s distributed
petitioner’s software products. Operating systems constituted the
bulk of these products.
During these years, approximately 250 foreign OEM’s paid
royalties to petitioner pursuant to the OEM agreements. The top 10
products licensed to the foreign OEM’s (ranked in terms of royalties
petitioner accrued) were as follows:
1990 1991
Product Units Revenue Units Revenue
MS-DOS 7,079,682 $96,742,734 7,726,513 $116,463,986
GW-Basic Interpreter 941,064 6,882,172 762,623 12,535,546
Windows 760,961 5,779,208 1,686,907 4,378,615
Windows 386 226,552 4,114,398 38,580 4,227,137
OS/2 22,128 2,784,467 151,267 2,790,240
Shell/DOS 929,728 2,359,430 188,846 2,759,226
MS-Works 154,732 2,054,785 364,822 2,733,731
LAN Manager 2,942 1,612,589 4,299 1,828,122
Networks 86,562 1,083,822 171,035 1,534,083
Basic Interpreter 176,279 994,132 60,154 1,427,047
These products represented approximately 75 percent of petitioner’s
foreign OEM licensing revenues for 1990 and approximately 84 percent
for 1991.
During 1990 and 1991, petitioner also licensed applications and
other software products to the foreign OEM’s.
G. Standard OEM License Agreement
Petitioner’s OEM business personnel and legal staff drafted a
standard (exemplar) OEM license agreement (the standard OEM
agreement) as the basis for negotiating licenses with the foreign
OEM’s. The standard OEM agreement was the starting point from which
negotiations ensued.
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