Long time EDA commentator Gabe Moretti posted the following regarding Free Model Foundry (and MFS) in his February 12, 2007 blog:
The Free Model Foundry (www.freemodelfoundry.com) has taken a different approach for some years now. Owners of standard parts or IP contract with the Free Model Foundry to develop a model of their part and pay the burdened development cost. Once the model is certified, it goes into the inventory and anyone can access it free of charge. Such business model is more efficient for the industry because the developers make a guaranteed one time profit, the IP owner charges a fixed development cost to the project, and customers get ready access to certified models without having to pay what they consider overhead charges for using the IP. I know that the word "Free" bothers some people. It has communistic, or socialistic overtones that go against the entrepreneurial spirit of competitive markets. And yet, everyone involved makes a profit: the silicon vendor, whether its product is real or virtual, makes a profit because the availability of the model increases sales, the Free Model Foundry makes a profit, and the users of the model decrease their development costs, thus potentially increasing their profits. And since the Free Model Foundry is guaranteed a profit it needs to build a lesser margin on its prices than a company that assumes the risks of not meeting its sales projections and thus loose money on one of its products.