Eleven Companies are Under Scrutiny Over GreenShift's Oil Extraction Patent
GreenShift Corporation is passionate about “clean energy” and plans to further develop their technologies for extracting oil from corn. The company warns that competitors who choose to infringe on their patented intellectual property are going to end up paying much more for their oil production. Both parties would benefit if they were to alternatively negotiate with GreenShift and license the patented techniques.
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SkunK
Friday, May 21, 2010
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3 comments:
When is GreenShift going to take these competitors to court? Is there any specific Court date? And how well of a chance do you think they have in court?
I believe that GreenShift has a strong case and will eventually win the litigation on the merits.
The rational thing for the defendants to do is settle quickly, because triple damages and court costs are accruing every day.
However, people rarely behave rationally in business.
So, its anyone guess. There could be a settlement next week, or the litigation could drag on for a decade ... or anything in between.
The 220 million gallons per year of contracts is worth about $3 million per year in royalties to GreenShift. Assuming a 8X multiple, that is $24 million in present value.
So, more contracts and/or a litigation settlement is needed to pay off all the debts.
Kevin has until March 31, 2011 to do so, before the creditors take over the company.
Time will tell.
Given GreenShift's tenuous financial condition, some infringers may attempt to drag out the litigation, with the hope that GreenShift will eventually go bankrtupt and be unable to fight the infringment battle any longer.
Under the terms of the COES patent licenses, as I understand them, the inventors get to keep their patents if GERS ceases operations.
So, even if GERS ceases operations, it is likely that the inventors and/or a new group of investors, will continue the litigation.
There are investment funds out there, which specialize in patent litigation. And, given the strength of this patent portfolio, I believe it is likely that someone will continue to fight these patents, even if GreenShift ceases operations.
In other words, infringers betting on these infringement suits to "just go away" when GreenShift runs out of money are probably making a bad bet.
Even if GERS and KK do eventually "go away", someone else will pick up the fight, because it is a very winnable battle.
And, with 220 million on contracts already lined up, there is a pretty good chance that GERS won't "just go away" anyways.
Bottom line ... the best course of action for the infringers is to settle quickly and amicably.
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