A License Model Based on Your Success

Modern Agreement for a Modern Era

The World's Most Prominent Cable
Manufacturers are REELEX Licensees

REELEX has become the standard packaging system for “last-mile” lengths of structured and low-voltage cabling such as Category 5e, Category 6/6A, security/alarm cables, instrumentation cables, coaxial cables, and is quickly becoming the preferred package for many other types of products like fiber optics, building wire, plastic tubing, and more.

REELEX Licensee List

Want to know which manufacturers are using genuine REELEX packaging? Take a look. We have over 80 licensees on nearly every continent.

Information for Private Labels and OEMs

Your brand is your reputation. Make sure your packaging is as genuine as your products.

Interested in REELEX Licensing?

Licensing Overview

Simple and Modern

The new license agreement has simplified, straight-forward terms and uses modern language for modern times.

Pay as You Go

Our new model is based on usage. Don’t use the REELEX machine much? Licensees with one or two machines have no minimum payment.  

Instead, pay usage fees based on your use of REELEX. Simply purchase the amount of packages you intend to produce.

Fees Based on Length, not Dollars

With recent volatility of copper and plastic prices, it doesn’t make sense to pay usage fees based on the selling price of your product.

Instead, new license agreements have usage fees based on length, not dollars. Number of packages x fee per package = usage fee.

Licensing Agreement Basics

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.

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.

Like many licensing arrangements, the customer, or “Licensee,” pays REELEX system usage fees. These fees may be paid as annual fixed fees or based on the number of the REELEX coils produced measured in 1,000-foot increments.

These fees are paid in advance for smaller manufacturers that own up to two REELEX machines, and in arrears for licensees with three or more machines.

All REELEX coiling machines are sold or rented at the same price for all licensees, and all licensees pay the same usage fees. REELEX uses the income from the usage fees to enhance packages, technology, and machinery. Our relationships with our licensees are more like partnerships and include package consulting and development, software upgrades, and non-travel service and support at no or minimal charge.

Additional Benefits

Access to Patents, Trademarks, and Know-How

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 that can directly benefit your product.

Licensees are provided full access to current and future intellectual property (without additional fees) to use REELEX machines to package their products.

Most-Favored Licensee Status

REELEX Packaging Solutions guarantees that all Licensees pay the exact same usage fees and that no licensee will be favored over another.

The “most favored licensee” clause in the License Agreement means REELEX treats all licensees equally, regardless of size. This allows the smallest manufacturer to receive the same terms as their larger competitors.

Package Consulting

REELEX licensees have access to over 40 years of accumulated know-how in specialty packaging. Our in-house team can assist in designing, modeling, and creating samples for your products free of charge.

Free Support

All support over the phone or email is free to all REELEX Licensees. Packaging development, samples and consultation is also free of charge. Chat, email or call – our technical support personnel are available nearly 24 hours a day. Need help? Just ask.

New Agreement FAQs

Won’t this new structure cost me more?

Compared to equivalent packaging, REELEX is the cheapest cost per package even with usage fees. Because the REELEX coil does not require an inner support structure, the package is greatly simplified compared to a spool or reel-in-a-box. As a result, REELEX packaging costs is approximately 50% less than equivalent spool packaging, even including the usage fee.

Why is this new fee structure better?

For customers with three or more REELEX machines, most license agreements had terms that linked usage fees to a percentage of net sales dollars of product sold in REELEX. In discussions with customers, we found a variety of issues with reporting, determining accurate sales numbers, and complaints regarding the impact of raw material pricing and how it affects usage fees.

As a result, we are moving forward with a new fee structure based on the amount of product using REELEX, not what it is sold for.

Do I need to sign the new agreement?

All equipment deliveries beginning in 2022 will require the new agreement to be signed prior to delivery.

I'm new to REELEX, how does the fee structure work?

For the first year of the REELEX license, the Licensee pays a usage fee prepayment equal to the Fixed Fee per machine.

Ongoing Fees
Licensees with 1-2 machines pay the Fixed Fee per machine on an annual basis, unless production is less than the quantity of packages represented by the Fixed Fee. Upon request, but only once per year, manufacturers with lower production volumes can instead request to pay based on the Variable Fee model.

Licensees with 3 or more machines produce a report each calendar quarter of packages produced. This quantity is multiplied by the Variable Usage Fee and is paid within 30 days of the end of the calendar quarter.

Can I keep my existing fee structure?

Unfortunately, no. The “Most Favored Licensee” clause of the agreement means that we cannot offer special or different pricing from what other licensees pay. As a result, all licensees must abide by the same terms in the new agreement.

Why a new agreement?

Over the past 50+ years, there has been enough variation between agreements that we must bring all licensees under the same terms. Additionally, the recent volatility in raw materials pricing means now is the ideal time to move usage fee terms to benefit all licensees. The new agreement also includes updated, modern language and additional benefits such as an indemnification clause and clarifications with regard to trademark usage.

Can I sign the new agreement at any time?

Yes. We encourage all licensees to sign the new license agreement at their convenience. Since 2022, all new REELEX equipment requires a new agreement to be signed before shipment.