Licensing ideas for the new scrubber in 2012

[SantaMonica]

For the new type of scrubber to be posted next year, I'm putting together some ideas for DIY licensing. The idea is to make it free or cheap. This will help pay for research and support. The current idea is:

1. Two free DIY licenses to anyone who builds units. Thus you could build two units for free. These two units could be for yourself or for sale to other people.

2. $5 licenses for each unit you build after the first two. This would pertain more to people who want to build and install units for other people.

[Doompie]

That's very reasonable!

You did a lot for the scrubber community. Would be a good way for financing more research..

[kerry]

Have you got in contact with that couple that just joined and build those custom acrylic over flows? I bet they would be interested.

[AquaOverflow]

Hi everyone. Yes we would be interested in helping out, however, we are completely new to scrubbers and will need to do a little research on basic designs and function.

[Floyd R Turbo]

You already know that I'm itching to build these. $5 is no problem. Personally I'd be willing to pay more if it gets me a preferred builder status :twisted:

[SantaMonica]

Keep in mind I'm talking about the new version, which nobody knows about yet. It is completely different from everything posted over the last three years, so there is nothing to study yet.

[Rumpy Pumpy]

I agree that SM deserves to be rewarded for his efforts over the last few years.

However, due to the relative simplicity and ease of building, I can't see how most DIY builders are going to be persueded to pay a licencing fee.

Also, as the method becomes more accepted and popular I am sure that we will see commercially manufactured versions appearing and being sold a very low prices (mass production in China using injection moulding will be a lot cheaper than hand building with acylic in the West).

If I was SM I'd be keeping any breakthrough new developments under my hat until I had patents established. And then I'd seek to licence it to one or more manufacturers.

[Floyd R Turbo]

That's why he hasn't said anything about it for the last year while he's been working on the patent issues.

And having free licenses allows the DIYs to build their own and not have to pay a license fee.

Injection molding, yes - but there's a $100,000 minimum order in most cases.

[SantaMonica]

The idea is that everyone can make two units for free... they just need to get a free licence number by email. After the 2nd unit, the license would be $5 USD each.... a one-time charge. Thus it would not matter if you were building them for sale to others, or you were adding extra tanks.

Each license would include a unit #, so that the total number of units could be tracked. It would be a one-time charge, and would make sure diy support went to the right people. It would also give manufacturers a reason to make them.

Yes this would be for the new versions only... which have not been posted anywhere yet. They have nothing to do with any scrubber you have seen so far, except that they grow algae.

[iggy]

There are more than 7 million US Patents at this point with a small fraction actually protecting profitable ideas. Unfortunately I would have it manufactured high quality and expect a short product life cycle. Without a patent a licensing agreement is not valid over borders.

[kentth]

A patent and a copyright are only as good as your pocket is deep. They will keep honest people honest. I hate to say it, if someone big wants to steal your idea, then you have to take them to court and that can be costly and time consuming.

A good friend of mine had a patent and a copyright on an item, that he manufactured in his own factory. He was doing very well with it and his business was growing. Started out regionally and was slowly growing nationally. This was back in the 80's, so no Walmart or Chinese to contend with. He attached the attention of Disney. Started selling some of his products to them. Increased production, was starting to make some real money. All of the sudden he discovered someone in the State of Washington, was copying is product, exactly. They were selling to Disney on the west coast, started selling to them after he did. Actually went into business after his Disney contract date, wonder where they got the idea or how bank rolled them.

He went after them. Had to hire a patent and copyright attorney in the Washington area. In the 80's his up front cost was $10K, just to start the case. It didn't take very long before he ran out of $$$. Which basically bankrupted his company. The other company, the last he checked they were still in business, still making his product, in China now and now selling to Disney world wide. Oh and the Chinese don't care about patents and copyrights, they just go ahead and produce the product and sell around you. They even will shut you out of your factory and start producing for your competition. I know of two companies in my industry, that this has happened to.

If it was me, I would go with the patent/copyright process. But be ready to have to make a decision on what you are going to do if someone tries to steal your idea. Copyrights are easy to get, anybody can get one. It is my understanding that for a Patent you pretty well have to hire an attorney. I would ask them about protecting your patent/copyright.

Kent

[SantaMonica]

Good points... been working on them for the last year.

[RkyRickstr]

Dont forget about us poor people when ur company takes off... Looking for a job here.. ;).

[SantaMonica]

You are on the list :)

[SantaMonica]

Current idea is to give out ID numbers for each new scrubber (new version which is not posted yet). To get an ID, you would just email a request, supplying some basic info. If you build one for someone else (as a reseller), you would get the ID for them. Then, when you or they need support, you post the ID number (or you could have the ID's in a signature), which of course would match the username, location, etc. This would help you organize your customers, and help you spot when customers in your area were getting scrubbers from someone besides you.

And of course, all scrubber resellers would get advance notice of new designs before they were posted/available.

[Floyd R Turbo]

So are you coming up with the design that will be built, or just the concept?

[johnarky]

Maybe I missed it, but what's the eta on rolling out this idea? I'm intrigued to say the least! :)

[SantaMonica]

The concept came up in April, and I'm now coming up with designs. I'll be posting the first diy versions probably in Jan or Feb. It will be the first time people with nano's can easily make a scrubber.

[Floyd R Turbo]

What I meant was, is your patent release going to unveil the concept, and then we can come up with our designs based on that concept under the patent licensing agreement, or are you also coming up with the design that must be followed, etc...

[SantaMonica]

You can come up with your own embodiments.

[SantaMonica]

How about this for another reason to get an ID number: A guaranteed response to questions, either here or on other forums.

[SantaMonica]

Looks like it might work like this:

If you DIY using my plans, the license for the first two units will be free. Each unit after that will be $5.

If you buy manufactured units from me, you'll get a free license with every one.

If you resell units to people at reef clubs etc, you can charge whatever you want.

If you want to sell units on discussion forums, you can get a "forum license" for each site (like RC, etc) for $5 per forum per month. Sell as many as you want on the forum for no extra forum charge. Of course if you do a banner ad or sponsorship of a forum, that is between you and them.

[kbb0118]

Intriguing idea. I definitely think SM deserves some kind of monetary compensation for his designs. $5 is a value no-one should scoff at. Price of one cheap fish.

I'd go for some kind of license to produce and sell to my local reef club...but my reef club also has a forum so would I pay $5 per unit and a $5 per month fee?

[Floyd R Turbo]

Oh, I see now. So you're saying that in order for someone to market your product on a forum, they would need to get a license to market on that particular forum? Is the idea that this would make sure that people who were buying them were buying only from people who were 'licensed'?

[SantaMonica]

The idea is to let consumers know what they are getting. If they buy from me, they should know, but if they buy from someone else, or if they have someone build it, they should still know that the product at least follows some form of design/function criteria. As you can see with the current pipe/screen versions, people can build things that range from amazing to terrible.

So for the local club forum, yes the idea was $5 for promoting it online on that forum, and $5 per unit built. You of course could charge whatever you want for the unit, and for any service/repairs thereafter.

Warranty remains unsolved, however. From me, it will probably be a 1-year warranty. But from another builder, I would say that each builder would decide for themselves if/how they would do it.

[Floyd R Turbo]

I would think that a warranty issue could only be addressed by the manufacturer. Not your problem IMO. Or are you thinking about mandating that anyone who buys a license also warranties the product? Probably not a bad idea, would promote proper construction techniques so that scrubbers don't get made cheaply. I think that would be hard to 'enforce' though.

[SantaMonica]

Current idea:

DIY: 2 for free; $5 each thereafter. Any design. If sold to someone else, must be marked as "Built by Brand X under license by SMF". Warranty by you.

RESELL: Manufactured units. Quantity discount from me. Will already be marked as "Santa Monica Filtration" brand. Resell anywhere at any price, except no-sell countries. Warrany by me.

FORUM: $5 per month per forum. Any design. Any quantity. DIY or resell.

MFG: Exclusive or non-exclusive manufacturing and sales license, per design, per country; Licensee must pay for IP filing in local country. Assignments available too. Warranty by licensee.

[Floyd R Turbo]

expand more on the MFG part, not quite following. I plan to manufacture, how does this affect me?

[SantaMonica]

You would be DIY.

Mfg involves overseas production/distro, and local prosecution of IP in the mfg countries.

[RkyRickstr]

Hey brian just curious... Everyone here wants to see you succeed.. but wont other people just build them and not tell u?. How does that work.. pls excuse my ignorance.

[SantaMonica]

They can build them if they don't want a license. It's free so why not get one.

[Floyd R Turbo]

I think he's saying that someone could sell many of them and not tell you.

[SantaMonica]

For a small number of units, that's fine. But the more ID numbers there are, the more it will be clear how many people have one.

[SantaMonica]

New levels:

DIY: 2 for free; $5 each thereafter. Any design. You get an ID number for each one. If sold to someone else, must be marked as "Built by Brand X under license by SMF". Warranty by you.

RESELL: Manufactured units. Quantity discount from me. Will already be marked as "Santa Monica Filtration" brand with ID number. Resell anywhere at any price, except no-sell countries. Warrany by me.

FORUM: $5 per month per forum. Any design. Any quantity. DIY or resell.

MFG: All options require local manufacturing, distribution, retail sales and warranty to be handled by manufacturer in their own country (PCT and Paris states)...

o Patent and Trademark non-exclusive license; licensee pays for local prosecution.

o Patent and Trademark exclusive license; licensee pays for local prosecution.

o Patent and Trademark assignment; licensee pays for local prosection.

o Trademark non-exclusive license; licensee pays for local filing.

o Trademark exclusive license; licensee pays for local filing.

o Trade secret, exclusive

[akando]

I am ready for the release of this idea!!

[Doompie]

Yup me two..time will come,.,

[GIT RITE]

This sounds resonable to me, I have already built a smaller scaled down version of your orignal and glady do whatever I need to secure the plans for a better one.

[SantaMonica]

New version:


DO IT YOURSELF: You can make 2 units for free, and each unit will be $5 USD after that. You can choose from any design that uses the patent-pending _____________ technology, and build it using my 3D drawings or your own. If you are selling the units, you can choose whatever price you want to get. You also get an identification number for each unit. If you are selling the units, you handle your own warranty. If you advertise or promote your units, you will need to add "Built by You under license from Santa Monica Filtration". It is also recommended that you print out a label and put it on each unit you make:


Built by You under license from
Santa Monica Filtration. ID #
_________________________


RESELL MANUFACTURED UNITS:. Quantity discounts of low-priced manufactured (not acrylic) units from me. Will already be marked as "Santa Monica Filtration" brand with ID number. Resell anywhere at any price, except any no-sell countries. Warranty by me; returns by you.

FORUM MARKETING: $5 per month per forum. Any design. Any quantity. Any price. DIY or resell. Marketing would include banners, signatures, or any posting that describes that you offer Santa Monica Filtration products or the patent-pending _________ technology. Any advertising costs are between you and the forum(s).

ADVANCE NOTIFICATIONS:: Unpublished patent-pending designs are scheduled for publishing (web posting) in the schedule below. Until they are published, they are trade secrets and are available for advance viewing by purchase. If you purchase, you (along with other manufacturers who have done the same) get notification of new patentably distinct technology, or new embodiments (designs) of those technologies, a certain number of months before they are published. This will allow you to decide in advance if you want to incorporate the technology into your current product offerings, and thus it will give you a head start on time-to-market. If the notice is for a patentably distinct technology, then the specification of the PCT will be included, but without claims. If the notice is for a new embodiment of an already-notified or published technology, then it will include detailed 3D drawings and a description. Any marketing or sales by you must wait until after the publication date, at which time the technology will be available for further IP protection options (see below) by you or others. Actual claims will not be made available, however, until the actual PCT publishes, which may be a later date. An advance notice does not in itself include any IP rights. An NDA must be signed by a principal of your company. Current price is $1,000 USD per month of advance notice. Publication schedule is:

March: Core tech 1
April: Embodiment
May: Embodiment
June: Embodiment
July: Core tech 2
Aug: Embodiment
Sept: Embodiment
Oct: Embodiment
Nov: Embodiment
Dec: Core tech 3


MANUFACTURING OPTIONS: All the IP options below require local manufacturing, distribution, retail sales and warranty to be handled by the manufacturers in their own countries (PCT states only). Currently there are ?? unpublished patentably distinct technologies, covering ?? unpublished embodiments. Any patentably distinct technology will have at least a PCT applied for before being available. Cost is approximately from lowest to highest:

o Trademark non-exclusive license; Licensee pays for local filing, and markets all related techniques under the Santa Monica Filtration brand. Other manufacturers, or I, may also market the same technologies in the same country under the same Santa Monica Filtration brand.

o Trademark exclusive license; Licensee pays for local filing and policing, and markets all related techniques under the Santa Monica Filtration brand. Other manufacturers may market the same technologies in the same country, but only under their own brands.

o Trademark assignment; Licensee pays for the local filing and policing of the Santa Monica Filtration brand. No other entity may market any related product in the same country under the same brand.

o Patent non-exclusive license: Licensee pays for local prosecution of one technology, and markets it under the Santa Monica Filtration brand in that country. Other manufacturers, or I, may also market that same technology in that same country under the Santa Monica Filtration brand.. Other manufacturers, or I, may also prosecute other related technologies and market them in the same country using the same Santa Monica Filtration brand.

o Patent exclusive license: Licensee pays for local prosecution and policing of one technology, and markets it under the Santa Monica Filtration brand in that country. No other entity may market that technology in that country under any brand. Other entities, or I, may prosecute and market other related technologies under the same Santa Monica Filtration brand in that country.

o Patent assignment: Licensee pays for the local prosecution of one technology, and markets it under their own brand. No other entity may market that technology in that country under any brand.

[reeftanknewbie]

like this one so far the best. Way to cover your bases SM.

[Floyd R Turbo]

I'm a bit confused on the manufacturing options. Which ones do not apply for use in the USA?

I"m glad you finally came out with an advanced notice plan and NDA. Unfortunately there's no way I'll be able to afford even a month of advanced notice.

[kerry]

SM, if one buys a full year in advance is there a discount or is it just by the month?

[SantaMonica]

I think 3 months is about as advance as I can get right now.

The manufacturing could possibly also apply to the US, but it would have to be a sizeable deal with an established manufacturer/distributor since it would be taking over what I was going to do, as least for that one particular technology or embodiment. Really the best opportunity for you is the DIY custom-builds for customers in your area; should be enough to keep you busy for years. They'll never know about these unless you do it for them; that's the whole purpose of the DIY options.

[SantaMonica]

New version:

DO IT YOURSELF: You can make 2 units for free, and each unit will be $5 USD after that. You can choose from any design that uses the patent-pending _____________ technology, and build it using my 3D drawings or your own. If you are selling the units to other people, you can choose whatever price you want to get. You will also receive an ID number for each unit. If you are selling the units, you handle your own warranty. If you advertise or promote your units, you will need to add "Built by You under license from Santa Monica Filtration". It is also recommended that you print out a label and put it on each unit you make:

Built by You under license from
Santa Monica Filtration. ID #
_________________________


RESELL MANUFACTURED UNITS:. Quantity discounts of low-priced manufactured plastic (not acrylic) units from me. Will already be marked as "Santa Monica Filtration" brand with ID number. Resell anywhere at any price, except any no-sell countries. Warranty by me. Returns are by you, meaning the customer gives it to you and you give him a new one, and then you send it back to me.

FORUM MARKETING: $5 per month per forum. Is non-exclusive, meaning another person could also market the same technology on that forum at the same time. Any design. Any quantity. Any price. DIY or resell. Forum marketing includes things like banner ads, signatures, or postings that describe that you offer Santa Monica Filtration products or the patent-pending _________ technology. Any advertising costs are between you and the forum(s).

ADVANCE NOTIFICATIONS:: Unpublished patent-pending designs are scheduled for publishing (web posting) in the schedule below. Until they are published, they are trade secrets and are available for advance viewing by purchase. If you purchase, you (along with other manufacturers who have done the same) will receive either new patentably distinct technology, or new embodiments (designs) of those technologies, a certain number of months before they are published. This will allow you to decide in advance if you want to incorporate these items into your future products, and thus will give you a head start on time-to-market and IP prosecution in your country. If the advance notice is for a patent application, it will include the specification of a PCT or U.S. provisional, but will not include any claims. If the notice is for embodiments, it will include 3D drawings. Any marketing, sales, or publishing by you must wait until after the publication date, at which time the technology will be available for licensing or assignment (see further below) by you or others. Claims will be made available on a case-by-case basis. An advance notice does not in itself include any IP rights. An NDA must be signed by a principal of your company. No guarantees are express or implied. Current price is $1,000 USD per month of advance notice, per item. Availability and Publication schedule is:

Embodiment X of Technology 1 -
Embodiment X of Technology 1 -
Embodiment X of Technology 1 -
Embodiment X of Technology 1 -
Embodiment X of Technology 1 -
Embodiment X of Technology 1 -

Embodiment X of Technology 2 -
Embodiment X of Technology 2 -
Embodiment X of Technology 2 -
Embodiment X of Technology 2 -
Embodiment X of Technology 2 -

Embodiment X of Technology 3 -
Embodiment X of Technology 3 -
Embodiment X of Technology 3 -
Embodiment X of Technology 3 -
Embodiment X of Technology 3 -

Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -

Embodiment X of Technology X -

Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -

Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -
Embodiment X of Technology X -


MANUFACTURING OPTIONS: All the IP options below require local manufacturing, distribution, retail sales and warranty to be handled by the manufacturers in their own countries. Currently there are 9 (?) unpublished patentably distinct technologies, covering 26 (?) unpublished embodiments. Any patentably distinct technology will have either a PCT or U.S. provisional applied for before being available. Cost is approximately from lowest to highest:

o Trademark non-exclusive license; Licensee pays local counsel to handle local filing, and markets all related technologies under the Santa Monica Filtration brand. Other manufacturers, or I, may also market the same technologies in the same country under the same Santa Monica Filtration brand.

o Trademark exclusive license; Licensee pays local counsel for local filing and policing, and markets all related technologies under the Santa Monica Filtration brand. Other manufacturers may market the same technologies in the same country, but only under their own brands.

o Trademark assignment; Licensee pays local counsel for the local filing and policing of the Santa Monica Filtration brand. No other entity may market any related product in the same country under the same brand.

o Patent non-exclusive license: Licensee pays local counsel for local prosecution of one technology, and markets it under the Santa Monica Filtration brand in that country. Other manufacturers, or I, may also market that same technology in that same country under the Santa Monica Filtration brand.. Other manufacturers, or I, may also prosecute other related technologies and market them in the same country using the same Santa Monica Filtration brand.

o Patent exclusive license: Licensee pays local counsel for local prosecution and policing of one technology, and markets it under the Santa Monica Filtration brand in that country. No other entity may market that technology in that country under any brand. Other entities, or I, may prosecute and market other related technologies under the same Santa Monica Filtration brand in that country.

o Patent assignment: Licensee pays local counsel for the local prosecution of one technology, and markets it under their own brand. No other entity may market that technology in that country under any brand.

[mess7777]

First post ever. Here is my question(s)

1) Will this be inexpensive to build?
2) Is it going to be good for space limited areas for dummies like me that build bad stands?

At this moment I don't have an ATS, so would hate to put a couple hundred into building one only to find a much better idea in a couple of months!

[SantaMonica]

For most people it will be dirt cheap, and super easy, to make a basic one. Not beautiful, but basic. You probably already have all the stuff. Any you don't need anywhere to put it.

[Floyd R Turbo]

if it's so easy to make yourself, will there even be a market for pre-built ones???

[RkyRickstr]

Always.. most people that can afford this hobby work allot and are always looking for convinience.

[jcooler]

Always.. most people that can afford this hobby work allot and are always looking for convinience.

I have to agree with this.
Too bad I'm not one of those that can afford all the fancy, convenient stuff. If I can't DIY it cheaply, I probably wont be getting it, whatever "it" might be. That's why I fell with love with the scrubber idea so fast!

[SantaMonica]

A cheap and easy DIY one will work, but be ugly. A slick looking professional one, however, will be impossible to DIY.

[SantaMonica]

if one buys a full year in advance is there a discount or is it just by the month?

Actually now that I look at it more, I should be able to make a few of them available up to 12 months ahead. They obviously can't go farther than the publication or expiration date of the application, however.

[whites]

HI SM

Got any facts on what this new baby of yours will be able to do flow rates size of unit how big a water volume it will filter etc??

Ive been skulking on here for a few weeks again and love the developments so far loving the red led... so wanted to know if I can play around with something while im off work for xmas or wait for your big announcment.

I have about 400l of water in my system will the new one work on this volume?

Cheers and all the best with your licensing ideas...

[SantaMonica]

Screen sizes are probably the same, per feeding. Pumps will be smaller. Unit size will be same to smaller. Lighting for DIY can be LED or CFL; lighting for mfg will probably be all LED.

[SantaMonica]

First try at the shopping cart for the DIY licenses... www.Santa-Monica.cc (http://www.Santa-Monica.cc)

[srusso]

First try at the shopping cart for the DIY licenses... http://www.Santa-Monica.cc

Wants to charge shipping for free license, gunning for DIY scrubber #1!!!!

[srusso]

shipping fixed, but now it says.

Choose one payment method
There's no payment options available to your address. Please check the entered address and try again.

The following information is missing or invalid:
Payment Method

[SantaMonica]

Try it now.

[kentth]

Seems to work fine. Just ordered one. I forgot to put a password it, but I put an email address in. So of course, it will not let me log in and it will not let me reset my password.

Have even received the order acknowledgement, via email.

What is the "Discussion Forum Marketing - $5 per month per forum" option?

Kent

[Doompie]

All good and well, but there is one thing I can't understand properly..

When you charge $1000 for one month pre-view / pre-production:
This has the consequence that before any manufacturer would pay this, there must be some certaincy that he can make $10.000 in that one month. Otherwise there will be no one laying the money down if the return of investment cannot be managed in that month.
The month after everyone else can get access to the same data, so his advantage is gone.
So i'm very curious where that $1000 is based on.. ?

Off-course i'm very willing to start marketing the new units for the dutch market.. Got a very good manufacturer, got some connections to multiple stores, and they are very willing to sell.
So for me a license would be very very interesting.

Requested the DIY license via the web-site, went well, except there is no link back to the site after order confirmation..
Also ordered an extra DIY license to produce an extra unit ($5) and payed via paypal..that also worked out..

[srusso]

Yeah, its working now.

[SantaMonica]

I forgot to put a password it, but I put an email address in

You can just make a new account, if you want one.


What is the "Discussion Forum Marketing"

That's when you want to sell units via a forum. Like RC.


where that $1000 is based on

It's based on a one-time advance cost. It's not based on monthly operation.

If a manufacturer (not a DIY) is going to consider entering the Netherlands retail market with low-cost plastic units, and also pay for local IP prosecution (Netherlands is a PCT and Paris contracting state), then the cost a few months of advance notice would be small in comparison. If it's for DIY only, then it would not apply; a DIY person can go right ahead and start selling, at least until someone else gets some blocking IP.

Holland, however, I don't think is a PCT or Paris state, and thus would need to be filed before I publish anything anywhere. An advance notice is mandatory in this situation. Once I publish, that technolgy can never be protected in Holland.

[SantaMonica]

I should mention also that the license agreement is not finalized yet, but when it is I'll send it to those that already got a license. You can always decline to accept the agreement/license if you want, and I'll reassign the ID# to someone.

[SantaMonica]

The following countries allow IP protection to be filed on a particular technology even after I post that technology online:

http://www.wipo.int/treaties/en/ShowRes ... reaty_id=2 (http://www.wipo.int/treaties/en/ShowResults.jsp?country_id=ALL&start_year=ANY&end_year=ANY&search_what=C&treaty_id=2)
and
http://www.wipo.int/treaties/en/ShowRes ... reaty_id=6 (http://www.wipo.int/treaties/en/ShowResults.jsp?country_id=ALL&start_year=ANY&end_year=ANY&search_what=C&treaty_id=6)


If a country is not listed in one of these lists, then once I post up a technology, nobody will ever be able to get IP protection in that country for that technology.

[SantaMonica]

Second try at the license agreement:




DO-IT-YOURSELF ("DIY") LICENSE TO BUILD ALGAE SCRUBBER FROM SANTA MONICA FILTRATION

version 1.1



(Print this license out; it will change periodically, and you need to have the proper version saved.)



The owner of the Licensed Patent Rights, __________________ in Santa Monica, California, USA (the “Licensor”), grants a license on the terms and conditions set forth in this Do-It-Yourself License (the “Agreement”) to the person accepting this Agreement (the “Licensee”).

1. DEFINITIONS

“Licensed Patent Rights” means (a) the patents and patent applications listed in the Licensed Patent Rights; (b) all divisionals, continuations, and foreign counterpart applications claiming priority from any patent or patent application described in (a); (c) those claims of any continuations-in-parts that claim priority exclusively from the patents or patent applications described in (a) and (b); (d) all patents issuing from patent applications included in (a) through (c); and (e) all reissues, reexaminations, renewals, and extensions of any patents included in (a) through (d).

“Licensed Process(es)” means a process, the practice of which would infringe but for the license granted in this Agreement, one or more claims of the Licensed Patent Rights.

“Licensed Product(s)” means a machine, article of manufacture, composition of matter, or other product (a) the manufacture, use, sale, offer for sale, or import of which would infringe but for the licenses granted in this Agreement, one or more claims of the Licensed Patent Rights, or (b) made or directly obtained by a Licensed Process.

“Necessary Patent Claims” means any patent claim(s), now owned, controlled, or hereafter acquired by Licensor in any patent that Licensor has the right to license, that would be infringed but for the license granted in Section 2.2, by the making, using, selling, or importation of processes or products that implement specific features or teachings of the specification of patent or patent application, but excluding any claims covering subject matter that is not set forth or specifically described in said specification.

"Licensed Technology" mean Licensed Patent Rights, Licensed Processes, Licensed Products, Necessary Patent Claims, and Trade Secrets.

“Specification” means the specification set forth in the "Specification" entry. The Specification is a copy, in whole or in part, of one or more of the specification(s) of the licensed patent(s) or patent application(s).

“Term” means the period of time specified in Section 5.

2. GRANT OF LICENSE

2.1 Subject to the terms and conditions of this Agreement, Licensor grants to Licensee under the Licensed Patent Rights, during the Term, a non-exclusive, non-transferable license, without a right to sublicense, to make, use, sell, or offer for sale Licensed Products and to practice Licensed Processes.

2.2 Subject to the terms and conditions of this Agreement, Licensor grants to Licensee under the Necessary Patent Claims, during the Term, a non-exclusive, non-transferable license, without a right to sublicense, to make, use, sell, and offer for sale products that implement the Specification (or portions thereof) and to practice processes that implement the Specification (or portions thereof).

2.3 The above licenses include the right to have made.

3. FEES AND OTHER CONSIDERATION

Licensee is granted the right to make, use, sell, and offer for sale two (2) Licensed Products for no fee, royalty, or other consideration. The third (3rd) and subsequent Licensed Products require a fee of $5.00 USD, per each, to be paid in advance of making, using, selling, or offering for sale said Licensed Products.

4. REPORTING

No reporting is required.

5. TERM

The Term of this Agreement commences on its execution and ends upon the expiration, abandonment, or final invalidity of all claims within the Licensed Patent Rights.

Licensor may terminate this Agreement in the event of a material breach of this Agreement that is not cured within thirty (30) days after Licensor provides written notice to Licensee specifying such breach.

Licensor may terminate this Agreement upon written notice to Licensee in the event that Licensee asserts a claim of patent infringement against Licensor or any third party with respect to products or services of Licensor, unless (a) such claim is first asserted after Licensor has asserted a claim of patent infringement against Licensee or any third party with respect to products or services of Licensee, or (b) Licensee fully withdraws such claim within ten (10) days after being notified by Licensor. For purposes of this paragraph, “Licensor” and “Licensee” shall also include their respective affiliates.

6. WARRANTIES

Licensor warrants that it has the right and authority to grant the rights and licenses granted in this Agreement.

Licensor disclaims all other warranties, representations, and conditions, whether express, implied, or statutory, including, but not limited to, the warranties of merchantability, fitness for a particular purpose, or non-infringement.

Without limiting the generality of the above disclaimer, Licensor makes no representation or warranties that: a) it will prosecute or continue to prosecute, maintain, or defend any patent or patent application, b) it will bring an infringement suit, assert any claim against third parties accused of infringement, or otherwise enforce any patent or patent application, c) it will join as a party to any suit or legal action, d) it will provide Licensee with know-how or assistance necessary or useful to practice the Licensed Patent Rights, e) the Licensed Patent Rights are valid or enforceable, or f) the Licensed Products or Licensed Processes may be exploited or practiced without infringing third party patents.

7. INDEMNIFICATION

Licensee shall indemnify and hold Licensor, and its officers, directors, employees, representatives, agents, and affiliates harmless from any and all damages, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising out of or caused by Licensee’s practice or exploitation of the license granted by this Agreement or by the sale, use, or exploitation of Licensed Products or Licensed Processes by or under the authority of Licensee.

Licensor shall notify Licensee promptly of any claim of which Licensor is aware and for which Licensor seeks indemnification. Licensee shall have the right to control the defense of such claims, except to the extent that the scope or validity of the Licensed Patent Rights are at issue, in which case Licensor may assume the sole control and defense of such claims at its own expense.

If Licensee is making units for resell, Licensee agrees to maintain insurance in amounts prudent for Licensee’s operations and adequate to discharge Licensee’s obligations under Section 7.

8. TRADEMARKS AND ATTRIBUTION

At Licensor’s request, Licensee agrees to mark Licensed Products and their packaging with patent markings and trademarks as required by applicable law to preserve Licensor’s rights and otherwise enforce the Licensed Patents.

Except solely as permitted above, Licensee may not use Licensor’s trademarks, service marks, trade names, company names, or logos (“Marks”) to offer, market, sell, or otherwise endorse any other product or service, or to engage in any other trademark usage, unless with the prior written authorization of the owner.

8.5 GRANT BACKS

If during the term of this Agreement, Licensee or Affiliate of Licensee, or any employee of Licensee, or Consultant of Licensee, shall make an improvement which Licensee or any Affiliate of Licensee uses to enhance, refine, improve, or revise Licensed Products, Licensee shall grant a non-exclusive royalty-free worldwide license to Licensor for the unrestricted use and practice, for use or sublicensing by Licensor in conjunction with its use and licensing of the intellectual property and its sale of Licensed Products. "Improvement" is defined to be an advancement which is non-severable from the Licensed Technology, i.e., it cannot be exploited without infringing on the Licensed Technology, and may be patentable or non-patentable under the laws of any country, subject to any governmental approvals that may be required for such Grant Back. Licensed rights with respect to such Grant Backs shall survive any termination of this Agreement.

Licensee agrees to submit potential improvements to Licensor or anyone else discreetly, before publishing anywhere, including any website. Licensee understands that presenting an improvement to a group of people, submitting to a manufacturer, displaying in a retail store, or publishing on a single website destroys all possibility of patenting throughout most of the world.

9. GENERAL PROVISIONS

Notices to the parties shall be provided at the address set forth in the Licensor and Licensee address section, unless a party provides written notice to the other party of a change of address. Notices may be provided by personal delivery, express delivery service, or registered mail. Notices shall be effective on the date received.

Nothing in this Agreement constitutes the parties as partners, joint venturers, principal and agent, or fiduciaries of each other.

A delay or failure in enforcing a right or obligation under this Agreement shall not be construed as an implied waiver of that right or obligation or of any other provision or breach under this Agreement. A waiver under this Agreement is only effective if made in writing and signed by the party granting the waiver.

An amendment or modification of this Agreement is effective only if made in writing and signed by the duly authorized representatives of the parties. This Agreement constitutes the entire agreement between the parties as to the subject matter herein and supersedes all prior or contemporaneous negotiations, agreements, representations, memorandums, and understandings.

If any provision of this Agreement is deemed to be invalid or unenforceable, then that provision, to the extent unenforceable, is severable and the remainder of this Agreement shall continue in full force and effect.

Licensee may not assign any of its rights under this Agreement, delegate any of its obligations under this Agreement, or otherwise transfer this Agreement, without the prior written consent of Licensor, and any attempted assignment, transfer, or delegation shall be voidable by Licensor. Any change of control of Licensee shall be deemed an attempted transfer of this Agreement. Licensor may assign this Agreement in connection with any sale, merger, or transfer of the assets to which this Agreement relates, provided that the assignee assumes all rights and obligations under this Agreement.

This Agreement is governed by and interpreted in accordance with the laws of the jurisdiction set forth in Los Angeles County, California, USA. The parties agree that the proper jurisdiction and venue for any disputes arising out of this Agreement shall be in the courts of the venue in this jurisdiction.

No rights or forbearances are granted, or may arise (whether through implication, estoppel, exhaustion or otherwise) other than those expressly granted in this Agreement.

TO THE EXTENT PERMITTED BY APPLICABLE LAW AND EXCEPT FOR THE OBLIGATION TO RENDER CONSIDERATION (IF ANY) IN SECTION 3, THE INDEMNIFICATION OBLIGATIONS IN SECTION 7, AND INFRINGEMENT OF ANY TRADEMARK OR INTELLECTUAL PROPERTY RIGHT, IN NO EVENT WILL EITHER PARTY HAVE ANY LIABILITY OF ANY KIND WHATSOEVER TO THE OTHER ARISING OUT OF THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO, FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Licensor:


Licensee:


Licensed Patent Rights:


Licensed Trademark Rights:


Specification:



####

[SantaMonica]

Version 1.1 now shown above.

Note: This is not a manufacturer license; it is only for diy.

[sal-t-dawg]

Just looking for a little clarification. What would be the advantage to purchasing a DIY license?

[SantaMonica]

First in line for help and improvements.
Shows how many have been built (ID#).
Good first step before manufacturing or reselling.
Paid ones help pay for for more testing.

[SantaMonica]

For manufacturers, who probably already know this, my initial research shows that a typical country has one LFS for every 10,000 people. This means that multiplying the population by .0001 will give you the approximate number of LFS in that country. So the earlier example of the Netherlands, with a population of 6,000,000, would have 600 stores. If your goal was to manufacture 5 units per store, you would need 3,000 units.

The first published version of the new scrubber will be a very simple one for SW and FW, including small nano's. I'm guessing that the retail cost would be $19.99 USD, and so the mfg cost might be $5 (a simple plastic piece). An initial production thus might be 3000 X 5 = $15,000. Shipping to 600 stores would be about $3,000.

600 stores is not that many, and could probably be handled by 2 marketing people. With an average salary+commission of $40,000 each, they would total $80,000. It would probably take the majority of the first year to get the units into all the stores.

Legal costs would be about $10,000 for the utility patent filing. Which just leaves advertising, which can vary from zero to infinity, and a negotiated upfront licensing fee, which of course will vary.

Total is about $108,000 + licensee fee. Most of the cost is marketing labor, which it usually is.

[RkyRickstr]

My goodness .. anxiety is killimg me

[Floyd R Turbo]

Well we have 2.5 million people in Iowa, but I seriously doubt there are 250 fish stores in the entire state. More like 25 I would think! I guess I don't know for sure, but seems a little high...You might know better than me though.

[SantaMonica]

It includes pet stores too, which would usually sell goldfish stuff. I count 321.

For mostly fish stores, I count 51 in Iowa.

[johnarky]

The first published version of the new scrubber will be a very simple one for SW and FW, including small nano's. I'm guessing that the retail cost would be $19.99 USD, and so the mfg cost might be $5 (a simple plastic piece).

Seriously? Very curious to see how an effective scrubber could be built for this cost.... Even a super basic DIY scrubber of the current design costs more than this (reflectors, CFL's, screen material, pvc, etc.) and that's not even adding the cost of a pump to run it.
Is this new design going to be anywhere near as effective as the current design or is it just more of a space saving technique that's applicable for Nanos? Sorry if this is off topic but I'm just SUPER curious. I'm sure my questions will be answered very soon ;)

[SantaMonica]

Well I forgot to mention that this one would probably require the user to supply their own light. But I'm not sure since I don't know the costs of lighting. But the effectiveness should be the same as current ones.

[SantaMonica]

A holiday reason for getting a free DIY license: Free help in patenting your improvements, with you as the inventor. Help can be various types:

o Tell you what you should read so you can do it yourself, or
o Submit your drawings as your U.S. provisional patent application, or
o Draft and file your U.S. provisional patent application, or
o Draft and file your U.S. utility patent application, or
o Draft and file your PCT patent application, or
o Hire a patent agent or counsel to draft and file a U.S. or PCT patent application.

[SantaMonica]

If you are a manufacturer, let me know if you have initial interest in an advance notice of the core technology (design) of the new scrubber. Almost all the subsequent technologies and embodiments will incorporate these core ones. I can probably do up to three months advance on the first posting.

[rygh]

Interesting idea. The license agreement looks fairly good.
The only slight concern is the insurance requirement under indemnification.
Vague, and not entirely common.

But my real suggestion (total opinion) is to keep it simple:

A) Put a pay-pal donation button front and center on the website.
I bet a few people might chip in to help keep things going.

B) Post fuzzy plans on the site, and charge every DIY person a $5 fee to get the really detailed plans.
Common strategy for people selling DIY plans.
As part of that, you grant a much simpler limited license to only use, not to sell.

C) When you engage with someone who really wants to build something to sell,
then get fancy with the paperwork, and tune it to that customer.
(Small guys will probably sign what you have. The big guys will ignore that, and give you what they want)

[SantaMonica]

Nice points.

The request for insurance is common in non-public-patent licenses, and the thought was that by introducing it here, it would carry over more easily for those people who want to become real manufacturers. But also, anyone building and selling electrical devices, even DIY, should have some type of insurance in case their device hurts someone.

a) Donations buttons are nice, however the desire is not to make money from DIY.
b) Nice idea. Would require yet another version, however.
c) Am doing that. The license agreement for manufacturers is many times larger than the DIY one.

[scott26]

I would be interested in the new design when it comes out and to get a licence for my DIY design or possibly just buy one. Let me know as soon as you can, thanks.

[SantaMonica]

You can order a free license now at Santa-Monica.cc, and when the license terminology is finalized I'll send it to you for approval.

[kerry]

SM, I was wondering why you used the TLD of DOT CC and not the DOT COM? I own a lot of TLD's like the ORG, NET, INFO, COM and so on but never bought a CC. Is there any advantage you seen in doing this?

[SantaMonica]

.com and everything else was taken up by the city of Santa Monica.

However I did also get AlgaeScrubbers.com

[kerry]

Yeah, I seen you had that one registered through godaddy and linked to .net

[SantaMonica]

The materials have all been submitted to the attorney for drafting of the PCT. All the embodiments have already been submitted as U.S. provisionals, but the PCT will focus on the 3 core constructs that will be present in any future variation. So whoever has IP ownership of these first 3 in a given country will be in a position to cross-license with most of the future variants.

Kinda like if you had patented a clear container to hold water (an aquarium)... Then all future variants of aquariums, even if someone came up with their own aquarium patent, would need to cross-license with you in order to build their version of the aquarium, since you have the base "technology".

[Floyd R Turbo]

So as I understand this, you have come up with a basic core concept (embodiment) that will be inherent to any Scrubber-II type of build. We can then build our own version "around" this embodiment, and if one feels that they have come up with a particularly unique way of expanding on your core design, one could potentially patent that version under a cross-license method?

[SantaMonica]

Pretty much. The basic concept is a "technology", kinda like the clear walls of an aquarium. The variations are "embodiments", kinda like nano's with built-in lighting, or zero-edge, etc. But the zero-edge would still need to license the basic aquarium in order to sell zero-edges. Then if someone wanted to build zero-edges, they'd need to license the aquarium technology and the the zero-edge technology.

Most embodiments are non-patentable, because they are only different sizes and shapes with the same function. It has to do something functionally different to be patentable (and thus licenseable).

[jc-reef]

Hi There, glad to see you boys over there are looking into a new concept. Here in the UK we are waiting for any new input and I am sure I speak for most of us in the UK and say $5.00 is a very small price to pay for plans to make the very first units. Please ,please keep up the good work.

[scott26]

So... how much longer or am I missing something?

[SantaMonica]

See the schedule here...
http://algaescrubber.net/forums/showthread.php?1708-Availability-Schedule

[scott26]

See the schedule here...
http://algaescrubber.net/forums/showthread.php?1708-Availability-Schedule

The link is broken, it doesn't show me anything.

[Floyd R Turbo]

http://algaescrubber.net/forums/showthread.php?1783-Availability-Schedule

[SantaMonica]

New link:
Here is a schedule...http://algaescrubber.net/forums/showthread.php?1783-Availability-Schedule