Let's talk about vortices, patents and business! 💲

Once the International Searching Authority (ISA) of the United States Patent and Trademark Office (USPTO) has determined that my international patent application "Full-surface detached vorticity method and system for solving fluid dynamics" (WO/2024/136634), under the Patent Cooperation Treaty (PCT), meets all three criteria for patentability (novelty, inventive step, and industrial applicability), it will be time to make an open offer to exploit such an invention (in the prosecution phase) through a Patent Licensing Agreement (PLA).

Fig. 1 The generation of vorticity on surfaces is a purely invisicid mechanism (Morton, 1984 and Terrington et al., 2022).

This time I will not write about the technical aspects of the patent (or how wonderful it is!), since I did that in a previous post: More patents, less papers (librepenzzzador.blogspot.com). Now, I want to focus on my business proposal. Since I have some experience as an entrepreneur in engineering (www.chuteshiut.com) before becoming a more formal researcher, I am trying to sell you my idea. By the way, at this moment I am not interested (at all) in selling the patent rights since I have no measure to know how much it costs...Moreover, I am more interested in knowing how this project develops over time, even in actively participating in it (mainly in research rather than coding). That is why I prefer to do it by licensing.

Fig. 2 Precise (zero residual) vortex stretching calculation scheme (inviscid and viscous cases).

I propose this business to small (local or national) and a large (transnational) CFD software development companies, preferably with knowledge and experience in particle-based methods (Smoothed Particle Hydrodynamics, Discrete Element Method, etc.) or panel methods. The first important thing to keep in mind is the deadline for entering the national or regional phase: August 9, 2025. That means about a year to do it. In the first instance, I offer a 3-year contract, which I consider to be enough time to develop and start commercializing such an invention within a country (or countries, for an exclusive company case, which can even be a small one!). 

But what about the royalties? This may be one of the cheapest PLAs ever! Yes, only $400* (four hundred USD) per month! (per territoriality). This amount is focused to attract the attention of relatively new and small local companies, which can take it with a calculated and low risk of decapitalization. However, the royalty rate for a large company is also low (only 3 times or $1200* per month), which is also attractive for transnational companies. On the other hand, worldwide licensing, which primarily considers 6 countries and one region (Europe, with at least 3 more countries), also has a low ratio, since it is equivalent to royalties for 5 countries, saving about 40% as they were licensed separately. To know more information about this, check the corresponding licensing detail sheet (link in the presentation).

Now it is time to talk about the PLA or contract, which so far has been exemplified for a small company (or a large one by adjusting royalties and down payment) that wants to protect within one country; as expected, a worldwide license should be simpler since it avoids clauses for sublicensing and rights in different countries. The first advantage is that such a PLA gives the licensee (company) exploitation rights for all fields of application, which makes patent licensing much easier to control. Another advantage is that it opens up the possibility of sublicensing outside the country, thus covering a wider exploitation market. Since such an invention is related to fundamentals, it is expected that new computer developments (methods, schemes, techniques, etc.) will arise. Of course, each company has the right to protect its industrial and intellectual property rights as it sees fit. On the other hand, as in most PLA's, the company will have the responsibility to keep such a patent active in its territory by carrying out the corresponding procedures and covering the fees. More details about the contract can be found in the corresponding PLA document (preliminary version). Such a document will be improved and eventually updated as necessary to be more precise. After that, minor changes can be made at any time, and it is always open to negotiation with interested companies; the first ones will shape the final agreement for the rest since all must be under the same licensing conditions.

This proposal will be open for the next 6 months (until early March 2025) to hear from companies (small and large) that are primarily interested in signing a PLA. During this period, preference will be given to the licensing per country modality with the expectation that at least two interested companies will sign. If no agreement is reached within this period, or if less than two companies are interested in this modality, the last 6 months (March-August 2025) will be open to hear from mainly one company interested in an exclusive (worldwide) license.

*This proposed royalty amount will be frozen if the company expresses potential interest (non-binding written) during the first offering period (August 2024-February 2025). Territorialities will be subject to avaibility.
 

For more details, download the presentation here: PDF VortoNeX



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