Under the terms of the license agreement, Ecology Coatings is providing BASF a non-exclusive license for use of its patents, EP 1 723 180, US 7,323,248, US 7,153,892 and US 7,498,362. BASF will pay Ecology Coatings a royalty of 0.5 percent of the net sales value of products using EP 1 723 180 sold in Europe, and a royalty of 2.5 percent of the net sales value of products sold outside of Europe.
BASF will pay Ecology Coatings a royalty of 2.5 percent of the net sales value of products sold outside of Europe using U.S. patents 7,323,248, 7,153,892 and 7,498,362. The agreement will terminate upon the expiration of the last patent licensed by BASF.
Patent EP 1 723 180 pertains to a coating for metal objects and can be used on automotive parts and many other industrial articles. The coating is especially useful for metal objects with rubber or plastic parts that would be damaged by heat.
Patent US 7,323,248 pertains to a coating for fiberglass panels. It applies to a wide variety of panels, especially those used in shopping malls, as it is resistant to sunlight and graffiti can be easily removed.
Patent US 7,153,892 pertains to a coating for olefin plastics, such as car bumpers. A major benefit of the coating is its ability to adhere without a primer.
Patent US 7,498,362 pertains to a coating for metal objects. It is very similar to the European patent, but for use in the United States.
“The license agreement validates our novel UV-curable coatings and the strength of our IP portfolio,” said Ecology Coatings CEO Bob Crockett. “BASF is well known for providing quality products and we are pleased that they have chosen to license four of our innovative coating patents.”