AUSTRALIA technology company Bluechiip has made its first steps into China, with a new development and commercialisation agreement.
The agreement with Eastern Equipment Trading Company (EET) will grant an exclusive license to EET to market, distribute and sell Bluechiip's products in China, and integrate Bluechiip's tags into vials and other receptacles that it will make and sell.
Under the terms of the agreement, Bluechiip will get an upfront payment on signing, milestone payments and royalties on net sales.
EET will be obligated to order certain minimum amounts, with Bluechiip estimating the revenue from these purchases, plus the royalties, will approach $500,000 in the first year.
According to Bluechiip, this is the first agreement to have been signed under its new strategy, where it will commercialise its MEMS-based IP by licensing the right to use its technology in specific markets and territories, as opposed to manufacturing and selling its own finished products.
Bluechiip says by leveraging its IP instead of manufacturing products, it can eliminate a lot of cost and complexity, and allows faster adoption of its technology in commercial environments.
This new strategy also allows Bluechiip to broaden the applications for use of its MEMS-based tracking technology to non-life-sciences sectors.