REELEX Licensing

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. For large manufacturers operating three or more coiling machines, the annual fees are 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.

What does the License Agreement Cover?

The license agreement covers the licensing of current patents, all future patents, REELEX trademarks and REELEX trade secrets. The license agreement also entitles licensees to REELEX's knowhow, including packaging and equipment development, software, programming and associated technology, technical knowledge, worldwide service, machinery upgrades and the ongoing development of the REELEX system as it applies to their products and the goals of the organization.

Unlimited Access to Patents

All licensees are allowed unrestricted access to all current and future REELEX patents, methods and know-how including updates to software and improvements to packaging and machinery.

Market and Legal Support

Licensees 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 Development

Licensees have complimentary access to REELEX Packaging Solutions’ consultation, personnel, machinery and design services for the purposes of product development projects.

Technical Support and Consultation

All support over phone or e-mail is free and unlimited for the life of the license agreement.
World-class REELEX technicians can be called on-site anywhere in the world within 48 hours.

Machine Buy-Back Program

REELEX 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.

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. More information on the reasons behind the REELEX trademark can be found here.

REELEX Royalty Fees

The REELEX system, service and development is sustained via revenue collected via royalty fees.

One-Time License Fee

There is a single, one-time license fee of US$7,500.00 payable upon signing a license agreement contract with REELEX. This fee represents the acquisition of rights to REELEX intellectual property.

Once the license fee has been paid and the agreement signed, the licensee abides by one of the schedules in the section below.

All users of the REELEX system, including manufacturers, OEMs or distributors packaging using REELEX technology pay royalties based on the following schedule:

Royalty Schedules Rented Equipment Fixed Annual Fee Variable Fee
Royalty Type

For machines rented from REELEX, the royalty fees are billed separately from the machine rental starting in 2014.

Each year a single royalty fee is paid for the use of as many REELEX coils as can be produced.

Licensees pay a percentage of net sales of products sold in REELEX. Each fiscal quarter, the licensee provides a report of net sales in REELEX packaging from which royalties are calculated.

Eligibility

Licensees renting coiling machines from REELEX who are not already on the variable fee schedule.

All REELEX licensees owning one or two REELEX coiling machines.

Licensees operating three or more REELEX coiling machines.

Payable Monthly. Annually or quarterly as desired. At the end of each fiscal quarter.
Schedule See Table Below See Table Below 0.35% of Net Sales in REELEX

Royalty Fee Schedule (2017):

Coiling Machines: Single Spindle (RS1, D-750) Dual-Spindle (D-1500) Automated (D-2000,D-2050)
Annual Fee for Purchased Machines: $12,427.00* $15,533.00* $19,675.00*
Monthly Fee for Rented Machines: $1,035.00* $1,295.00* $1,639.00*

*Adjusted annually per the CPI-U inflation index. Prices reset in 2014, CPI-adjusted as reflected above effective Jan 1, 2017.