Oct 22 2004
Applied Nanotech, Inc., a wholly owned subsidiary of Nano-Proprietary, Inc., and Shimane Masuda Electronics Co., Ltd. today announced the signing of a letter of intent to develop new products utilizing CNT (Carbon Nanotube) sources backed by ANI's vast patent portfolio. Upon successful completion of the development phase, which is expected to take up to 12 months, the parties will either enter into a 50/50 joint venture agreement where the joint venture has certain rights to license ANI's patents and sell products in the Asian market, or a license agreement whereby SME has specific rights to certain ANI patents, including the right to sell the products in Asian countries.
As part of the development phase, SME will pay ANI $110,000 for specific equipment and development work to be done by ANI. If the parties choose to enter a joint venture, SME will pay ANI an additional $90,000 and the joint venture will pay a 3% royalty to ANI for products sold by the joint venture using ANI patents. In the case of a license agreement, SME will pay ANI an upfront payment ranging from $100,000 to $250,000, plus a 5% royalty on products sold using ANI's intellectual property.
"We are very excited to enter into this relationship with such a high-quality company," said Marc Eller, Chairman and Chief Executive Officer of Nano-Proprietary, Inc. "Shimane has the sense of urgency, manufacturing capabilities, and customer connections that we are looking for to bring CNT products to market," continued Eller.
"We believe that this agreement will greatly contribute to a friendly development between the Shimane Prefecture and the State of Texas," said Yuzuru Ishikawa, president & CEO of Shimane Masuda Electronics. "We are entrusted by many people, including the Governor, who supports us with great expectations for the success of this joint venture. A big market can be expected. I want to contribute local society for job creation and steady labor market," continued Ishikawa.
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