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exploitation. At the end of the nonexclusive licensing period,
I-Tech granted Oshap the buy-out option.
The exercise prices of the buy-out options held by Efrat,
Hal Robotics, and AiTech, were based on I-Tech’s investment.
I-Tech had options to acquire a 20-percent interest in
Efrat, AiTech, Hal Robotics, and certain Oshap affiliates,26 and
a 10-percent interest in Cycon.
Project Restrictions
The Israeli Government and I-Tech entered into a multiannual
industrial research agreement.27 The agreement contained the
following clause:
[I-Tech] undertakes to cause the manufacturing of the
Product to be developed as a result of the Research
Program to be carried out only in Israel.
I-Tech’s contracts with each R&D company contained a
prohibition against the manufacture of any product or partial
product taking place outside of Israel without the express
written consent of the Chief Scientist. This restriction applied
whether the products were manufactured or produced by I-Tech or
by one of the R&D companies. Additionally, each R&D agreement
included a prohibition against any sublicensing agreements that
26Robcad, Robcad B, or other affiliates holding the rights
to partnership patents and technology.
27Petitioner provided only the multiannual industrial
research agreement regarding Efrat’s research program. The
counterpart agreements for the other four R&D companies were not
provided.
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