Licensing

The corporate strategy is to license ZED intellectual property to engine manufacturers that supply product manufacturers.

This corporate strategy is based on the production of ZED engines that can replace conventional engines in any use, in other words, not change the basic end-product design or functionality. To date, no other “green-tech” replacement of the conventional engine can make this claim.

ZED licenses its technology to independent engine manufacturers, as well as product manufacturers that make their own engines.

Examples would be:

  1. Cummins diesels in Dodge trucks
  2. World brand engines in Jeeps
  3. Briggs & Stratton engines in lawn mowers
  4. Honda engines in water pumps
  5. Hyundai engines in power generators

Licensing is also effective from the view of allocating financial resources. For example, in the auto industry a new vehicle platform can cost $1 billion. Even a small assembly plant (60,000 vehicle annual capacity) can be another half billion dollars. Add to that the cost of tier suppliers, vehicle shipping and storage, dealership buildings and land, parts supply, service training, as well as marketing and advertising, and the startup cost for a new company to compete against established manufacturers can exceed 3 to 4 billion dollars. This barrier to entry has “killed” many car brands over the years, including most recently the Fisker electric.

engine manufacturersAlternately, at comparatively little cost one can license the technology to manufacturers which already have the “pipeline” in place, so that the ZED engine is just another engine option in their vehicles, or other products.

The corporation generally does not sell any product to either the public or manufacturers, and does not anticipate a change in this policy. Similarly, the company has no plan to sell vehicle engine “conversion kits”, other than those to re-power heavy trucks. From time to time the company may donate engines to educational institutions for the purpose of classroom instruction.