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Technology Stocks : Advanced Engine Technologies (AENG)
AENG 0.00010000.0%Mar 7 3:00 PM EST

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To: wonk who wrote (681)6/12/1998 1:50:00 AM
From: Sword   of 3383
 
Wireless:

Thanks for your kind words.

Your analysis of royalties is simple and sweet. I think it would be valid to say $25 might be possible if all of the following were true:

1. The first claim in the patent was very strong and the first claim patented the basic configuration of the engine. Neither of these is likely to be true from what I have read.

2. There were as many as ten other separate patents relating to other supporting features of the engine that were essential to the successful operation of the engine and these other patents were also strong.

3. The performance of the engine matched the hype.

If all of the above were true then, maybe, just maybe you might be able to get $25 per engine in royalties. As it is, the single patent they have might be worthless. An innovation just on the output shaft and cam? Worth maybe 5% to 20% of the $25. Worth nothing if the Ford or GM engineers can design a better way to accomplish the job. We will see.

I have patents that are worthless and I have patents that are very valuable. Having a patent does not guarantee value to the innovation. In fact, very few patents issued ever make any money for the assignee or patent holder. And all of this does not even begin to address the validity of the performance claims which are completely separate.

-Sword
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