Apart from the market segments DigitalHydraulic LLC reserves for its own production, DigitalHydraulic LLC grants exclusive and non-exclusive licenses to use its technology in exchange for a royalty stream. Licenses specifically define:
- Horsepower, Flow and Pressure requirements
- Target market
Typical licenses cover the following stages:
- An initial evaluation period during which a licensee can build prototypes and analyze the technology
- The evaluation license grants the licensee the option to negotiate a licensing agreement before the end of the evaluation period. If no agreement is reached, all rights to the technology cease.
- The full licensing agreement generally includes fixed annual fees to continue development and testing of prototypes and start manufacturing of product.
- Following this development period or once the product is released, DigitalHydraulic LLC receives royalties.