The LEDIDICO LTD aspect and direction, page-29

More a case of master/servant relationship, reality, lessons learnt, patent protection and or income protection. SM invented K-MAX. They were most likely asked to solve the problem and financed by PWN to solve the problem. PWN own the patent as they were the master. SM were the servant. At that time lithium was being talked about, so someone asked the question as to if K-MAX worked K could it work for Li? SM went back to their labs and came back with the answer YES. SM were the master in this case. Lepidico P/L was formed to commercialize the result L-MAX. PWN was recognised as contributing with K-MAX as a shareholder of Lepidico P/L. LIT was recognised and given various rights which were performance based to a limited time. In due course there was a RTO and LPD resulted. This structure showed flaws in patent protection as twice there were takeover attempts.
In the product optimization study of the L-MAX, there were several issues regarding the end byproducts and the market for them. SM went back and solved them resulting in S-MAX and LOH-MAX. There is a fine line here whether SM were paid to solve the problem in which case they were servants or they went back and solved the issues at their own expense in which case they would be the master. With the current application the latter must be the case.
SM is a trading company and subject the possibility of being made insolvent or brought out or taken over etc. Thus the prudence is to separate the patent from SM.
The subsequent proving up of the patents is obviously going to be taken up by LPD and they get exclusive rights for doing so. Lessons learnt.