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:
  • Application
  • Horsepower, Flow and Pressure requirements
  • Target market
  • Territory
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.