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Commitment to license terms 9-27-01
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License terms

To promote the interest of the public in the possible commercial use of this new method of dosing by weight, a patent application has been filed and will be administered for profit by: Prophy Research Corporation / 2464 Halelaau Pl / Honolulu, HI USA 96816-3404 /// raygrogan@hotmail.com.

 

To facilitate the commercial adoption of this new technology, the following license terms are available. While we may grant lower royalties in some situations, we will not ask for any higher royalties than stated in this commitment for one year. No license is needed for experimental work. Devices with dosing scales may be freely made and used for clinical trials. We will be supportive of companies testing drug safety in children.

 

Patents have been granted in Switzerland and South Africa, and the patent is pending in the USA. No license is required in any other countries.

 

 

 

 

 

 

1. The term of licenses will be any length desired, up to the life of the patent, and will be cancelable by licensee at anytime with no reason. We may cancel only for licensee breaking the terms of the license agreement.

 

2. There will be no limitations on manufacturing location.

 

3. Each license will be for a specific product type (e.g., liquid formulations of cefaclor for human use) and no license will grant exclusivity beyond the specified product type.

 

4. A product type may have multiple variations (e.g., vitamins could have variations such as with and without iron) without needing additional licenses.

 

5. We reserve the right to establish minimum net prices within some product types in order to establish a premium for products that offer dose by weight devices. This policy will be set on the first license for each product type and be uniform for all following licenses within that product type.

 

6. Milestone payments will not be greater than $10,000 per year.

 

7. Use of our trademarks will be included in license; we will be given joint ownership of trademarks created by licensees that relate to our method of dosing.

 

8. Packages will be marked with something along the lines of: The OptiDoseŽ dropper is patent pending by and licensed from Prophy Research Corporation / 2464 Halelaau Pl. / Honolulu, HI 96816-3404 USA.

 

9. Royalties will favor early licensees. The first licensee gets a great deal and each follower pays a higher and higher royalty. Note there is also a choice for the first licensee. The higher the royalty the first licensee chooses, the quicker the rates go up for the followers. In other words, as the license gets more exclusive, it becomes more expensive. (Royalties are shown here as % of retail sales; the actual formula is slightly different and is far easier accounting wise.)

 

 

First licensee chooses .1% sales (= multiplier of 2)

 

Royalty as ...

 

% of retail sales

per $5 sale

per $30 sale

1st licensee

.1%

$.005 (1/2 cent)

$.03 (3 cents)

2nd licensee

.2%

$.01

$.06

3rd licensee

.4%

$.02

$.12

4th licensee

.8%

$.04

$.24

5th licensee

1.6%

$.08

$.48

 

 

 

 

First licensee chooses .2% sales (= multiplier of 2.5)

 

Royalty as ...

 

% of retail sales

per $5 sale

per $30 sale

1st licensee

.2%

$.01 (1 cent)

$.06 (6 cents)

2nd licensee

.5%

$.025

$.15

3rd licensee

1.25%

$.063

$.375

4th licensee

3.13%

$.156

$.938

5th licensee

7.81%

$.391

$2.344

 

 

 

 

First licensee chooses .3% sales (= multiplier of 3)

 

Royalty as ...

 

% of retail sales

per $5 sale

per $30 sale

1st licensee

.3%

$.015 (1.5 cents)

$.09 (9 cents)

2nd licensee

.9%

$.045

$.27

3rd licensee

2.7%

$.135

$.81

4th licensee

8.1%

$.405

$2.43

5th licensee

24.3%

$1.215

$7.29

 

First licensee chooses .4% sales (= multiplier of 3.5)

 

Royalty as ...

 

% of retail sales

per $5 sale

per $30 sale

1st licensee

.4%

$.02 (2 cents)

$.12 (12 cents)

2nd licensee

1.4%

$.07

$.42

3rd licensee

4.9%

$.245

$1.47

4th licensee

17.15%

$.858

$5.145

5th licensee

60.03%

$3.001

$18.008

 

(If more exclusivity is desired, this general formula is available at higher permutations.)

 

 

Priorities in awarding licenses 9/27/01

(This is a first draft of our internal priorities, which may change. Potential licensees are welcome to view our priorities, but this is not binding in any way.)

 

We will make an attempt to decide who gets the first license in any given product area on a fair basis. In a general sense we are looking for people who like the idea of dosing by weight, which we assume is what it will take to help the idea be accepted. Here is our pecking order:

 

 

Priority

Notes about this license candidate

1. Products that already have a dose by weight product on the market. In a strict sense this applies only to the 4 products in Switzerland (see world list), plus any there or in the US that we do not know of as yet. But there are ways that a company can claim a leg up here: Some consideration will be given to relatives of any of the companies / products currently dosing by weight any where in the world. Also, if a company is / was already working on the idea that would count for something.

 

 

 

2. Major researchers of the product itself. This would include the original developers of a drug. We would be particularly inclined to help stretch patent protection for a product about to go off-patent. Market leaders in a drug would also get extra consideration.

 

 

 

3. Old friends, developers of products we like, and people with historic or other ties to our personal areas of research. (Hey, at least we made this our 3rd priority instead of #1!)

 

 

 

4. People who approach us first. We will make some attempt to contact people who deserve priority if we know about them, but we are not making promises.

 

 

 

5. People who have done some work on the idea. Included here are designing the actual formulation, dosing scale, and dispensing device to go with your product. Calibration of a new device can be a fair amount of lab work. A few ad ideas would not hurt.

 

 

 

6. People who want an appropriate level of exclusivity. If you have a small market share or regional distribution, and particularly if your plans are to stay that way, we would prefer to grant less exclusivity.

 

 

 

7. Other.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

World list