Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mark Argento – Craig-Hallum.
Mark Argento – Craig-Hallum
This MAKO deal, I know it's early on and the company MAKO is just ramping up in terms of units, but is it typically this type of deal that you get upfront royalty and then per unit payment, or how should we think about these deals going forward?
Clent Richardson
We're particularly confident and excited about this MAKO announcement as it's the first in a new category and it is also a new revenue stream for us. Typically the arrangements will be a fee upfront to start and a per unit royalty payment or licensing payment depending upon the agreement.
Mark Argento – Craig-Hallum
Do you have to put any upfront engineering costs in in terms of getting the product up and running in their device or is it fairly well integrated at this point?
Clent Richardson
Each agreement will be a little bit different because each of these surgical robotics manufacturers are in varying stages of implementing and considering Haptics. That said, in this instance, this will have a very quick turn into the market and we believe there will be little work we will have to do to help get them up and running.
Mark Argento – Craig-Hallum
I know you had mentioned in the press release and discussed a little bit on the call about your market share assumptions 15% to 25% on the flat panel mobile devices, does your assumption there include any new OEM wins, any new manufacturers or is that with who you have already announced relationships with?
Clent Richardson
Let me just quickly unpack how we arrived at that. First, it's based on an I supply study that everybody that follows us and this category generally understands from May of 2008. It is also based upon our track record run rate and knowing what models of phones we're working on that are coming to market as well as forecast validation from the three largest handset manufacturers on the planet which are Nokia, Samsung and LG.
So this is an integrated understanding of the market. We do not take into account any new OEM's in this particular forecast.
Mark Argento – Craig-Hallum
Shifting back to Medical, I know that there's been some bills, some pending legislation introduced with HR855 I think you've touched on this before, are you following that bill and have you done any lobbying efforts behind that, the bill to see if you could get that Medical training somehow pushed through?
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