Intellectual Property: Valuation, Exploitation and Infringement Damages 2013 Cumulative Supplement, 11th Edition

APPENDIX K

* ELECTRICAL AND ENERGY ROYALTY RATES (NEW)

Amorphous Metal Transformers

Licensor:	AlliedSignal, Inc.
Licensee:	Crompton Greaves Ltd.
Royalty:	$300,000 plus 1% to 2.5% of sales

Crompton Greaves Ltd. entered into a technical collaboration with AlliedSignal for manufacturing amorphous metal transformers (AMTs) for use in India and for export. AMTs are more energy efficient than conventional transformers using silicon steel cores. They can reduce no-load losses up to 80%. No-load losses, which occur when voltage is applied to the transformer, represent a major portion of the energy lost during power distribution. The energy savings by using AMTs can significantly reduce or defer costly investments for power generation. Crompton agreed to pay AlliedSignal 1% of sales in the first year, with the royalty increasing to 2.5% in the fifth year of the license.

Source: FT Asia Intelligence Wire, The Hindu, News Section, February 5, 1999.

Battery

Licensor:	Tracor, Inc.
Licensee:	Electrosource, Inc.
Royalty:	4.5% of sales

Tracor, Inc., and its subsidiaries provide sophisticated electronic and information technology products, systems, and services to the Department of Defense (DOD), other U.S. government agencies, foreign governments, and commercial customers. The company's business units operate in the United States and in foreign defense electronics, information technology, and systems engineering and integration markets. The company's products and services largely ...