Research Frontiers Incorporated of the United States announced last week that it had signed a licence agreement with Hankuk Glass Industries Inc. of Korea for the commercial sale of a wide variety of …
Research Frontiers Incorporated of the United States announced last week that it had signed a licence agreement with Hankuk Glass Industries Inc. of Korea for the commercial sale of a wide variety of products using the US company“s proprietary suspended particle device (SPD) technology for the control of light. SPD technology permits light transmission to be electrically controlled instantly either automatically or by the user. Hankuk Glass Industries is Korea“s largest flat glass company and also has various joint ventures around the world. In 1990, Hankuk entered into a licence agreement with Research Frontiers covering SPD smart windows, which essentially limited Hankuk to manufacturing SPD smart windows in Korea and selling them for architectural applications only. Since that time, a team from Hankuk“s Technical Research Institute in Inchon, Korea has been developing an SPD film production process and prototype products. One such prototype is an SPD variable light transmission “smart” window for use in homes and buildings. Another prototype developed is an SPD variable light transmission sunroof for cars. The new licence with Hankuk permits them to produce and sell throughout the world a wide range of products using SPD technology, increases the percentage royalty on net sales of licensed products from prior levels, and requires that Hankuk achieve certain commercialisation and sales levels. Hankuk has been granted a limited exclusive right in Korea with respect to SPD products consisting of architectural windows, windows for cars, boats, trains, aircraft and spacecraft, sunroofs, and skylights. The licence is non-exclusive outside Korea. Hankuk does not have the right under their licence to make SPD eyewear, helmet or goggle products. SPD smart windows will compete for a share of the more than 1 billion square metres of flat glass produced worldwide each year, and also provide retrofit opportunities. SPD smart windows can provide controllable degrees of light transmission with little or no haze when activated. Used in conjunction with low-E glass, SPD smart windows can block ultraviolet light and promote energy efficiency. The licence also gives Hankuk the non-exclusive right to sell automatically-dimming automotive SPD rear-view mirrors and sun visors, provided that they are made and sold in Korea and are used as original equipment on automotive vehicles manufactured in Korea. The Company also intends to form a joint venture or licence arrangement with a major automotive supplier to produce and sell SPD rear-view mirrors worldwide, and discussions with several such manufacturers have already commenced. The estimated market for self-dimmable rear-view mirrors is currently around US$ 100 million annually, and is growing rapidly and expected to continue growing rapidly for the next decade. At present, electrochromic self-dimming mirrors are utilised in many automotive models and account for over 3 million of the estimated annual worldwide production of 150 million rear-view mirrors for new cars and trucks. The agreement also permits Hankuk to produce and sell SPD light control film to a selected list of Research Frontiers“ other licensees and prospective licensees.