Royalty Report: Energy Resources & Svcs, Machinery, Oil & Gas Extraction – Collection: 28692

License Grant

Licensor filed suit in the U.S. District Court for the Eastern District of Texas, Beaumont Division, against XL Systems for infringement of Patent No. 5,247,418 and trade secret misappropriation, breach of contract, and unjust enrichment.

License Property

Our XL Systems product line offers the customer an integrated package of large bore tubular products and services for offshore completions and production. This product line includes our proprietary line of wedge thread marine connections on large bore tubulars and related engineering and design services. We provide this product line for drive pipe, jet strings, conductor casing, and tendons. We also offer weld-on connections and service personnel in connection with the installation of these products. We also recently purchased the rights to a proprietary weld-on connection, which we believe will help us increase market share in these markets.

License Grant

The Netherlands Company granted a non-exclusive technology and trademark license agreement (without right to sub-license) to connection technology in the licensed territory of Mexico and its offshore waters.

License Property

The technology, technical assistance and patents licensed hereunder embodies the manufacturing processes of cutting threads and reconstructing connections on full length tubular products, excluding drill pipe, and accessory equipment.

Accessory Equipment shall mean the threaded items necessary to complete a well to produce oil and gas, such as crossovers, connectors, pup joints, liner hangers, landing nipples, packers, packer stringers, end line pressure control equipment, safety valves, gas lift valve mandrels, lift plugs, lift caps, hydrostatic test plugs, hydrostatic test caps, handling plugs, handling caps, discharge head hangers, float shoes, float guides, float collars, flow couplings, collars, blast joints, tubing anchors, side pocket mandrels, couplings and similar equipment as defined in API Standards series 5, latest edition, but excluding the items, Threaded Couplings, casing, and tubing.

License Grant

Licensor hereby grants to Licensee the exclusive, nontransferable (except as hereinafter provided) license, including the right to sublicense others, to use Licensor’s Technical Information, including Confidential Technical Information throughout the Licensed Territory.

License Property

Licensor owns technical information and Preparatory Designs relating to the Abrasive Fluid Jet Technology.

The licensing agreement was replaced in its entirety in August 2005 when the Licensor sold up to 50% of its interest in the abrasive fluid jetting technology that provides us the unrestricted right to use the technology and License the technology worldwide to others.  In return, the Licensee agreed to award 3 million shares of their stock to the Licensor and to fix the price of the 1 million previously awarded warrants.

The present disclosure relates to drilling and cutting systems and their methods of operation and, more particularly, to a method and apparatus for jet-fluid abrasive cutting.  A method and apparatus for down hole abrasive jet-fluid cutting, the apparatus includes a jet-fluid nozzle and a high pressure pump capable of delivering a high-pressure abrasive fluid mixture to the jet-fluid nozzle, an abrasive fluid mixing unit capable of maintaining and providing a coherent abrasive fluid mixture, a tube to deliver the high pressure coherent abrasive mixture down hole to the jet-fluid nozzle, a jetting shoe adapted to receive the jet-fluid nozzle and directing abrasive jet-fluid mixture towards a work piece, a jetting shoe controlling unit that manipulates the jetting shoe along a vertical and horizontal axis and a central processing unit having a memory unit capable of storing profile generation data for cutting a predefined shape or window profile in the work piece and coordinating the operation of various subsystems.

Applications of such cutting techniques are a proven feature in industries as diverse as munitions disposal in the military, offshore platform dismantlement in the salvage industry and cutting specialty glass and steel in the machining industry.

Field of Use

The Licensee believes the applied fluid and abrasive jetting technologies and related trade secrets may be instrumental for a competitive edge in the oil and gas service industry.

The term Field of Use refers to use of the Party’s Design Rights or technical information in the design, manufacture, storage, transportation, installation use, sale or marketing of Technology.