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International Hydrolytics Ltd.
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Exclusive Licensing
Licensed Technology
The preferred
vehicles for marketing AHC technology are negotiated, royalty-bearing,
exclusive, with premier companies of the world, to exploit revolutionary lines of
advanced, affordable, needed, and desirable AHC products. The rationale for
this preference includes: immediate revenues in the form of front-end license
fees; and the availability, as appropriate, of prospective licensee's existing
manufacturing or test facilities and established product distribution networks.
In this regard, IHL's comprehensive yet flexible license format contains the
following essential provisions: scheduled amortization of license fees;
incremental funding of prototype development costs, if any; built-in safeguards
to minimize risks; declining royalty scale in proportion to adjusted gross
sales volume; fair and equitable sharing of non-exclusive sublicense
fees/royalties; long-term product development and marketing support; and joint ownership
of patents. Accordingly, since no known company controls any given market
segment to the extent that it cannot be expanded by AHC technology, major
benefits will accrue to exclusive licensees through sublicense fees, long-term
royalty revenues, and attendant control that derives from sublicensing to the
competition.
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