Because the REELEX system is a patented technology, the authorized use of these patents, associated trademarks and know-how is administered through the signing of a License Agreement and the paying of usage fees or “Royalties”.

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.

Royalty fees are collected from ALL REELEX licensees. Everyone with a D-750 pays the same fee regardless of how long they have been a customer, or how many machines they have. The small companies can compete equally with large companies with no favoritism. These royalties keep REELEX in business so we can continue to provide parts, service, know-how and decades worth of R&D to our customers. Without the royalty fee REELEX would be out of business very soon, and so would service and parts to support over 300 active REELEX machines, over 100 major cable producing facilities and thousands upon thousands of distributors around the globe.

All License Agreements contain a “Most Favored Licensee” clause. This clause states that any changes to pricing will be made available to all licensees equally.

This guarantees you that you are paying the same prices for machines and fees as all other companies in your country. All companies, big and small, pay exactly the same amount for machinery, parts and fees.

In accordance with the license agreement, there are no available discounts or special deals available to you or your competitors. If there were, they would be offered to all licensees equally.

License agreements signed in 2013 or later include global coverage. Previous to 2013, individual agreements were signed per country. For companies with multiple locations, we strongly recommend contacting us to sign the updated agreement, which greatly simplifies and modernizes the REELEX license contract. Contact us for more information.

Fundamental to REELEX licensing is the concept of “know-how”. The REELEX coil and the methodology is trade secret, and has never been patented. This technology and surrounding intellectual knowledge including software programming, proprietary circuitry, formulas, calculations, algorithms, equipment designs and over 40 years of packaging expertise are all included under the “know-how” moniker.

Simply put – because REELEX could not survive on machine sales alone. Our annual machine sales are not very many, and thus with 40+ employees the cost of running the business would force machine prices to be extraordinarily high. This would make the barrier to adopt REELEX much too expensive and nobody would buy machines.

Thus, if REELEX tried to survive from machine and part sales alone we would be out of business. Instead, REELEX sells machines “at cost”. This means that when REELEX sells a machine it includes material, labor, development costs and overhead, but no profit.

The Royalty fees are collected from ALL REELEX licensees. Everyone with a D-750 pays the same fee regardless of how long they have been a customer, or how many machines they have. The small companies can compete equally with large companies with no favoritism. These royalties keep REELEX in business so we can continue to provide parts, service, know-how and decades worth of R&D to our customers. Without the royalty fee REELEX would be out of business very soon, and so would service and parts to support over 300 active REELEX machines, over 100 major cable producing facilities and thousands upon thousands of distributors around the globe.

Like many licensing arrangements, the customer, or “Licensee”, pays REELEX system usage fees, or “royalties”, that are based upon the production capability of the REELEX coiling machines that they own or rent. These royalties are typically paid annually for those that own up to two REELEX machines, and monthly for those that rent equipment.

For large manufacturers operating three or more coiling machines, the annual fees are based upon a customer’s annual sales volume of REELEX packages. These are considered “variable” fees. More information on the Royalty schedule structure can be found here.

The Royalty fees are collected from ALL REELEX licensees. Everyone with a D-750 pays the same fee regardless of how long they have been a customer, or how many machines they have. The small companies can compete equally with large companies with no favoritism. These royalties keep REELEX in business so we can continue to provide parts, service, know-how and decades worth of R&D to our customers. Without the royalty fee REELEX would be out of business very soon, and so would service and parts to support over 300 active REELEX machines, over 100 major cable producing facilities and thousands upon thousands of distributors around the globe.

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