Rossi: Manufacturing, not Licensing is Focus for E-Cat

With the achievement of obtaining a US patent now accomplished, one might think that an attractive avenue for Rossi’s Leonardo Corporation would be to start licensing E-Cat technology to outside companies, which would provide new revenue streams and help with the proliferation of the technology.

However Andrea Rossi has made a comment on the Journal of Nuclear physics that indicates that approach does not seem to be in the cards at the moment. When asked whether Leonardo/IH was willing to “license/manufacture some of the e-cat discoveries and label them as ‘patent pending’” while other patents were going through the application process, Rossi responded:

“More than licensing, we are now focused on manufacturing, which will be the next step ( F9). The 64 patents I am working upon are part of a complex IP protection that anyway will not affect the manufacturing scheduling, also because we will reach a so high level of economy scale that our competitors will not have any convenience to make reverse engineering, also considering that the US patent allowed does not leave much room under the process and apparatus point of view. We can proceed independently from the patents that are pending and the patents that will be applied for for the time being. Again, provided the results of the R&D and tests on course will reach positive results: our disclaimer related to the fact that the final results could be negative is still valid.”

So it seems that the patent approval hasn’t really changed the commercial approach which Rossi has long said is to start manufacturing once the current 1 MW Plant test is successfully completed, and use the strategy of high volume, low cost production to discourage competitors from reverse engineering the E-Cats.

Rossi has said that people will be surprised at the speed with which commercialization will get underway, providing the test on the 1 MW plant completes a successful test. He has said that no time will be lost in getting the production and manufacturing underway — and it looks for now that they will stay in the driver’s seat on this, rather than sharing their technology via a licensing model.

  • Alberonn

    If licencing is not an option at the moment, where does that leave IH, which is a licencee, at least that was the conclusion recently dominant at this site ? And is he talking about, just the 1MW plant or does it include the Hot-Cat X, intended for the homemarket ??
    Anybody sees an indication/line in his recent comments, please enlighten us….

    • ecatworld

      I’m pretty sure when discussing licensing in the above context, Rossi is referring to outside parties who are not currently part of the licensing system already in place.

      I don’t know the details, and the relationship between Leonardo Corp and Industrial Heat is not entirely clear, but I believe that Industrial Heat is a manufacturing licensee, and also a distribution licensee for the United States and China (according to Roger Green of E-Cat Australia).

      • kenko1

        That was my intent when I asked Dr. Rossi. Looks like much will be developed in house or very ‘close to the vest’ so to speak.

        • LilyLover

          I think the core will be manufactured under the supervision of IH but the rest of the E-Cat will be mass manufactured in China. I also think that the Core will be made available to be 3D printed at the partenring companies allowing wide-net replication capability as a secondary back-up.
          I think Rossi wants the ability to offer the 3D printing in the event of certain country not permitting the E-Cat. He can then simply ship-in the fuel mix.
          He simply wants to make sure that –
          E-Cat : If you want one, you can get one, no matter where you are!!

      • Bernie Koppenhofer

        The agreement between Rossi and Industrial Heat can contain such a wide variety of contractual language, an outsider will simply not know the relationship until he reads the contract.

  • Alan DeAngelis

    When Rossi starts to produce electricity with the Cats, he could be the first to use them to reduce his manufacturing costs (giving him a further competitive advantage).

  • Omega Z

    I think everyone reads way to much into Rossi’s singular posts. You can’t draw conclusions from just 1. You need to consider them in concert. Things like “License to Manufacture”.

    And statements like-“More than licensing, we are now focused on manufacturing,”- Licensing isn’t excluded, but including manufacturing. These are hand in hand.

    Clips from JONP & Rossi posts.
    —————————————————————————————————————–
    Aug. 4th, 2015___ #3- who will manufacture the E-Cats? Leonardo Corporation and the Licensees that have also the manufacturing license.

    Aug. 7th, 2015___#3- did Leonardo Corporation make agreements to sell licenses for the manufacturing and/or sell the E-Cats for limited territories? YES

    July 3rd, 2013___Our USA Partner and world Licensee for the manufacturing is the sole in charge to determine the sales of energy and/or plants.(Likely Industrial heat)
    ————————————
    To cheap to reverse engineer
    May 17th, 2015 Rossi post to Frank Acland
    Our strategy, though, is to defeat the competition making prices that make reverse engineering pointless. Also in this fields, as in all others, competition will make the Customers happy
    —————————————————————————————————————-

    To cheap to reverse engineer means most are not going to bother. It will be cheaper to license it’s use in their products. Does Intel inside ring a bell.

    To cheap to reverse engineer- Does not rule out competitors. The Big boys will have most of the information they need just from patents. And probably they will reverse engineer Rossi’s reactors. Several reasons. To make certain it is as published & 2nd, to assure they develop technology different from his to avoid patent infringement.

    I also think anything Industrial heat manufacture’s will be of a prototype nature as part of R&D.

    Consider- How many I-Phones does Apple manufacture?
    I don’t know how many prototypes Apple builds, but manufacturing is all contracted out. Apple is a product marketing Corporation. Not a manufacturer.

    This allows Apple to be a huge Brand in the market without all the downsides of building, maintaining, or updating a manufacturing base. In fact, Apple can leverage one manufacturer against another for best price.

    IMHO, Industrial heat / Leonardo will operate somewhat like Intel & Apple or a combination thereof. This is the norm today.
    Samsung, Apple’s competitor actually make product for Apple.
    Most Auto glass used in the U.S. is manufactured by a Ford division. Yes, It’s even used by GM.

    • oceans

      your right Omega, Industrial Heats plan to mass manufacture is much like Apple and it has been a huge success the – To Cheap to Reverse Engineer mantra is going to WORK !

      The “licensing model” – will lag behind the progressive Industrial Heat business plan, of course we are looking at the “Standard” for Cold Fusion Generators, like Apple phones
      eCats will lead in customer satisfaction and support.

  • GreenWin

    Stumbled across this article from “One World of Nations” from late last year – roughly translated from Russian. “US President Barack Obama has proposed to China to jointly develop generator technology “cold fusion.” http://www.oneworldofnations.com/2014/12/us-president-barack-obama-has-proposed.html

    There has been little or no backup for this tale but it does mention E-Cat players JT Vaughn and the “Generator Rossi.” What is the connection to China in all this? Aside from Darden’s work on the Chinese Tianjin Huayuan (NiH) Industrial Park manufacturing zone, there is also his and JT Vaugh’s work via the Sovereign’s Capital. Sovereign’s is investing in the expanding middle class of Southeast Asia. http://sovereignscapital.com/#advisors-menu

    • Eyedoc

      Nice find….I wonder if its true? We are certainly living in very interesitng times

  • Albert D. Kallal

    I don’t think the servicing and maintains of the consumer
    e-cat will be any more of a challenge then say servicing of your existing furnace
    or air condition unit.

    And as far as manufacturing goes, they should in theory
    be able to ramp up quite quickly. I recall the engineer who designs those animated
    robot figures seen in restaurants. This engineer simply designs the product,
    and then outsources the manufacturing out. So one manufacture will build part
    X, and then ship that part on to the next manufacturer who adds some more bits
    and parts. (and so on!). And then the last manufacturer simply ships to the customer.

    In effect the engineer does not own any factory, lives in
    a simple apartment, and yet he is in the manufacturing business. The internet
    today allows this setup. As long as you can design something that can be manufactured,
    then you are much in business today and don’t need your own plant.

    I think the major hurdles for a consumer e-cat will
    certification, and coming up with a good working consumer design. Once this
    occurs, then the manufacturing, distribution and servicing is not really much a
    challenge. (the existing HVAC companies in any city can service such devices).

    And while competition will eventually heat up (to use a
    pun!), I would not discount the “first mover” advantage. Apple not the only
    smartphone company, but they enjoy a strong market position due to them being
    first to market.

    The larger problem for competitors to e-cat is they are a
    few years behind and now with patient issues, the competition may well have a
    difficult time producing such devices without infringing on e-cat patients.

    China and some country might steal the IP of the device, but they not be able
    to sell such products into the USA or any developed nation that respects
    copyrights (and that’s also the nation were such products will fetch the best
    price).

    If Rossi succeeds in building a mass produced consumer
    device, then we are looking at the next GE, Apple or Google in terms of market value.

    The fact that larger industrial players all seem much asleep on LENR only helps
    Rossi even more.

    Regards,
    Albert D. Kallal
    Edmonton, Alberta Canada