REELEX Licensing
Important Information about REELEX Logo Requirements for all Licensees
Because the REELEX system is a patented technology, the authorized use of this technology is administered through the signing of a License Agreement. This contract gives the Licensee full access to REELEX’s portfolio of patents and all trademarks associated with the REELEX system, while also entitling the Licensee to unique advantages and benefits guaranteed to them as long as the REELEX system is being utilized.
In return, the customer, or Licensee, pays REELEX annual system usage fees, or royalties, that are based upon the production capability of the REELEX coiling machines that they own or rent. In some cases, the annual fees may be based upon a customer’s annual sales volume of REELEX packages.
REELEX Packaging Solutions uses the income from the annual fees to provide enhancements to the packages and machinery associated with the REELEX system as well as to promote and encourage the use of REELEX packages, thus enhancing the market for all Licensees. REELEX Packaging Solutions will also, when necessary, take legal action in order to defend REELEX patents and trademarks from counterfeiting or infringement.
Licensee Benefits
Unlimited Access to Patents
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Market and Legal SupportLicensees have access to a market created, developed and supported by REELEX Packaging Solutions. Legal support and representation is also available in the event of patent infringement. |
Product DevelopmentLicensees have complimentary access to REELEX Packaging Solutions’ consultation, personnel, machinery and design services for the purposes of product development projects. |
Technical SupportAll support over phone or e-mail is free and unlimited for the life of the license agreement. |
Machine Buy-Back ProgramREELEX Packaging Solutions will guarantee the buy back of all used REELEX machines purchased by a Licensee at the original cost of the machine depreciated by a 10% per year, declining balance basis. |
“Most Favored Licensee”REELEX Packaging Solutions guarantees that all Licensees are paying exactly the same royalty fees and that no licensee will be favored over another. |
REELEX Trademark Logos
All REELEX licensees are required by the license agreement to have the following logos visibly printed on every package containing a REELEX coil.
REELEX Package Marking Requirements
These logos indicate that the manufacturer has the legal authorization to use REELEX patents and know-how. They also ensure that end-users know they are getting an authentic REELEX package that will perform the way they expect, every time.
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REELEX Usage Fees
The REELEX usage license fees are payable in a variety of different ways. Some companies with several REELEX machines choose to go on a variable payment plan, while others choose to pay in advance for their usage of the REELEX system.
These fees are fixed and are never adjusted (nor will they ever increase) except for inflation.
If a REELEX machine is being rented, these fees are built into the monthly payment, except for in the case of the D-2000.
REELEX machines may alternatively be setup on a pre-paid plan in which a fixed royalty of $0.35 per coil is paid in lieu of the fixed annual fee. This is typically only recommended for low-volume production.
Please contact us for more details and information on alternative payment plans.
Below is the fixed fee schedule for the various machine types. Fees are payable once per year.
| Coiling Machines: | D-200 | D-750 | D-1500 | D-2000 |
|---|---|---|---|---|
| First Year Usage Fee: | $0.35 per coil | $6,000.00 | $7,500.00 | $12,000.00 |
| Second Year Usage Fee: | $0.35 per coil | $8,500.00 | $10,000.00 | $15,000.00 |
| Subsequent Years Usage Fee: | $0.35 per coil | $10,000.00* | $12,000.00* | $18,000.00* |
*Adjusted annually per the CPI-U inflation index.