LICENSING

12 Months Ended

Dec. 31, 2015

Licensing [Abstract]

LICENSING

9. LICENSING

We have licensed the exclusive right to manufacture and market the Autoscope video and RTMS radar (from July 24, 2012 to July 14, 2014) technology in the United States, Mexico, Canada and the Caribbean to Econolite, and we receive royalties from Econolite on sales of systems in those territories as well as in non-exclusive territories as allowed from time to time. We may terminate our agreement with Econolite if a minimum annual sales level is not met or if Econolite fails to make royalty payments as required by the agreement. The agreement’s term runs to 2031, unless terminated by either party upon three years’ notice.

We recognized royalty income from this agreement of $8.5 million, $10.2 million and $11.6 million in 2015, 2014 and 2013, respectively.