It is not clear from your statement of the question and background detail whether or not you have in place any/all/none of the following: (1) nondisclosure agreements with either the parent company and/or the manufacturer of the electronic device, (2) whether you have some sort of license, joint development, technology transfer, or royalty agreement with either the parent company and/or the manufacturer of the electronic device, and (3) whether you have enforceable patent rights that cover the "electronic device" in question. The more of the above you have in place, the better your position to enforce some sort of royalty agreement. However, if you have none of the above, you may have no rights at all. A nondisclosure agreement (NDA) is usually put in place to protect you from third parties (such as the parent company and/or the manufacturer of the electronic device) to whom you wish to disclose your "electronic device" so that they can determine whether they want to use your devices. The NDA provides you a breach of contract action if they subsequently fail to honor their part of the agreement. The subsequent license, joint development, technology transfer, or royalty agreement (or any other final agreement) would be put in place after both parties have negotiated the final deal and want to move forward under the terms of the agreement. And finally, patent rights give you the right to exclude others from making, using or selling, an "electronic product" covered by one or more claims of the issued patent. If you are patent pending, you cannot enforce your rights until the patent issues. Let us assume that you have some sort of agreement in writing with either the parent company and/or the manufacturer of the electronic device. That agreement should clearly state what your royalty arrangement is, for example, how the royalty is calculated, who is paid, when it is paid and who pays it. Patent rights would give you an additional legal action in patent infringement if either the parent company and/or the manufacturer of the electronic device, irrespective of any contract action. Thus, without more information it is impossible to answer your question in any sort of meaningful way. You would be well-advised to seek the advice of competent patent counsel to fully explore your particular facts and business objectives to determine and execute a legal strategy to achieve your business goals.
Answered on Feb 06th, 2014 at 11:47 AM