Cavitation Technologies Signs IP Agreement with Desmet, Retaining Key Licenses

Cavitation Technologies, Inc. (CTi), a leading ESG company specializing in nano-technology systems for fluid processing, has announced a significant intellectual property agreement with Desmet Belgium S.A. The deal, signed on October 14, 2024, will allow CTi to monetize parts of its patent portfolio while maintaining crucial licenses for its core business operations.

Under the terms of the agreement, CTi will assign and transfer several U.S. and non-U.S. patents to Desmet, along with associated technical information that has been previously licensed to Desmet for use in vegetable oil, fats, and oleo applications globally. Additionally, CTi will transfer ownership of two U.S. trademark registrations for its Nano Neutralization® and Nano Reactor® marks to Desmet.

Despite this transfer of intellectual property, CTi has strategically reserved for itself a worldwide, exclusive, transferable, and royalty-free license to practice and use the assigned patents and technical information in two key areas: water and wastewater processing, recovery, recycling, and purification (including oilfield wastewater), and the manufacture, distillation, brewing, enhancement, sale, and marketing of alcoholic beverages.

This agreement is particularly significant for CTi's future operations and financial stability. By monetizing the value of IP rights already licensed to Desmet, the company can generate substantial capital without diluting shareholder value. This influx of funds will provide crucial support for CTi's current business plans and ongoing development efforts in its primary business lines.

Neil Voloshin, CTi's CEO, emphasized the strategic importance of this transaction, stating that it will enable the company to retain a full range of exclusive licenses and rights necessary for continuing the development of business partnerships, projects, and opportunities in their core areas of focus.

The implications of this agreement extend beyond the immediate financial benefits for CTi. It demonstrates the company's ability to leverage its intellectual property assets effectively, potentially setting a precedent for similar deals in the technology and engineering sectors. For investors and industry observers, this move signals CTi's commitment to maximizing the value of its innovations while maintaining a strong foothold in its primary markets.

Furthermore, the retention of exclusive licenses in water treatment and alcoholic beverage enhancement positions CTi to capitalize on growing environmental concerns and the evolving beverage industry. As global water scarcity issues intensify and demand for innovative alcoholic beverage processes increases, CTi's protected technologies could play a crucial role in addressing these market needs.

The transaction is expected to be concluded within ten days of the announcement, upon CTi's delivery of assignment instruments and related documents to Desmet. This swift timeline suggests both parties' eagerness to implement the agreement, potentially indicating the deal's perceived mutual benefits.

As the nanotechnology and fluid processing industries continue to evolve, strategic IP agreements like this one between CTi and Desmet may become increasingly common. Companies seeking to optimize their patent portfolios while securing their core technology assets could look to this deal as a model for balancing monetization with long-term strategic interests.

For CTi, this agreement marks a pivotal moment in its business trajectory. By securing capital without compromising its ability to innovate and compete in its primary markets, the company has positioned itself for potential growth and expansion. Industry watchers will likely keep a close eye on how CTi leverages this newfound financial flexibility to drive advancements in water treatment and beverage enhancement technologies.