This is interesting news indeed. Thank God for lawsuits because every time somebody sues, all the court documents enter the public domain. So in this particular case, Leonardo Corporation, the current leader in Cold Fusion / LENR technology and headed by Andrea Rossi, sued the company known as Industrial Heat, a licensee of Leonardo’s Intellectual Property (IP), for breach of contract. Industrial Heat had paid Leonardo the initial fee of $16 million but have reneged on their contractual obligation to pay up the remaining $86 million.
Okay, so here’s the story: Andrea Rossi created an LENR device
called an E-Cat which, according to independent third party validators from the University of Bologna, produced up to 3 times the amount of energy it took to actually run the device. Tom Darden, the CEO of Cherokee Investments, created a new company, Industrial Heat, for the purposes of entering negotiations with Leonardo in order to invest in their IP portfolio.
As you can see in the contract below, Industrial Heat was to be the sole Licensee for the territory covering the Americas, and they were to pay a total fee of $100 million for the license. However, the money would be released in stages, i.e. the first $16m was to be paid after Industrial Heat’s own preliminary tests showed that the E-Cat really could do what it was purported to do. And the remaining $86m after a longer one year test period showed a minimum COP (Coefficient of Performance) of 6. That is, producing 6 times more energy than consumed. This test would be on a larger scale: A one-megawatt (1 MW) E-Cat heat-producing plant installed at a customer. Both Industrial Heat and Leonardo would mutually agree on the ERV (Expert Responsible for Validation) who would test the unit over the one year period and both Industrial Heat and Leonardo would pay him 50-50.
So the first $16m was paid to Leonardo Corporation without any problems, then the one year test commenced as agreed. After the test was completed, the ERV published his results and they were very positive, indicating an average COP above 6 and as high as 50. Even the customer themselves, Johnson Matthey, located in Florida, were so impressed by the savings on their energy bill that they ended up buying 3 more E-Cat plants from Leonardo.
Now here’s where it gets interesting. As per the contract, the $86m was to be released if the one year test showed a minimum COP of 6, and the test results did actually show that this was the case. The COP of 6 was achieved as required, so now Industrial Heat had to pay up so that they would receive the License. But instead, they’ve reneged on their contractual obligation and are no longer willing to pay. Industrial Heat say they don’t believe the ERV’s report, yet they themselves chose the ERV who would perform the test and had complete access to his tests and equipment throughout the year. Leonardo, on the other hand, says the reason Industrial Heat doesn’t want to pay anymore is they have stolen Leonardo’s technical data about the invention and how to replicate it. Most likely through reverse engineering. Hence the lawsuit. Thankfully the information now is out there for all to see.
This just goes to show how real the phenomena of Cold Fusion /LENR is. Believe me, nobody in their right mind would pay $16m for a technology that doesn’t work. We’re living in interesting times, people. I hope you have positioned yourself to profit from the coming Energy Revolution.
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I don’t see all the information about the amount and payment issues around the $86million on this page of court documents. Can you publish more (even all) of the court documents if they are available? Thanks!
Richard, just scroll through the document. It has 25 pages. They’re all here. Click on the magnifying glass or fullscreen option and scroll down.
Your figures are all incorrect.
Contract 3.1 says $100,500,000. Contract 3.2 (a) says “Payments of $1,500,000” Contract 3.2 (b) states $10,000,000. and Contract 3.2 (c) states a final payment of $89,000,000. Every thing has been paid except the final $89,000,000.
Yes, that’s exactly what I’m saying. He was paid over $10m and $89m remains outstanding. I’ll correct the figures but the truth of the story remains.