The HDMI royalty is only payable on licensed products that will be sold on a stand-alone basis (i.e., that are not incorporated into another licensed product that is subject to an HDMI royalty). For example, if a cable or IC is sold to an adopter who then includes it in a television subject to a royalty, then the cable or IC maker would not pay a royalty, and the television manufacturer would pay the royalty on the final product. If the cable is sold directly to consumers, then the cable would be subject to a royalty.
