Applied Nanotech Holdings, Inc. (APNT.OB), a nanotechnology company engaged in research and development based on intellectual property, recently announced that the company has entered into a licensing agreement with a leading sporting goods manufacturer. This license agreement grants the sporting goods manufacturer the exclusive right to use Applied Nanotech’s technology in the manufacture and sale of tennis and badminton racquets in Japan and Taiwan with the nonexclusive right to sell these products on a worldwide basis.
In exchange for this license, Applied Nanotech Holdings will receive an initial royalty fee of $577,000 and an ongoing royalty of 4 percent based on sales of the sporting goods manufacturer’s products using the technology. The manufacturer will also fund additional research and development to further facilitate integration of this advanced technology into the manufacturing process.
Dr. Zvi Yaniv, the company’s chief executive officer, commented on the agreement stating, “We are pleased that our efforts in the composites area have led to this license agreement. Although the total size of the exclusive markets for the targeted racquet products is limited, estimated at less than $150 million annually in the exclusive region, our success with this project has opened the door to opportunities with other companies and for other applications. We expect composites to be an increasingly important area of our business allowing lighter weight products with equal strength or stronger products of the same weight.”
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