Opinion ID: 792108
Heading Depth: 2
Heading Rank: 1

Heading: The Contractual Relationship Between AEI And Baldwin

Text: 3 In September 1998, AEI and Baldwin entered into an agreement to develop a machine that would filter soot out of diesel-engine lubricating oil. The Development and License Agreement (Agreement) sets out the parties' desire to engineer and develop this machine, called the Extractor; provides for each sides' respective responsibilities regarding the engineering, design and manufacturing of the Extractor; and arranges for the licensing of any patents, patent applications, designs or other intellectual property resulting from the engineering and design of the Extractor. 4 In Article One of the Agreement, AEI agrees to develop and to deliver to Baldwin a prototype Extractor. AEI takes full responsibility for the engineering and development of the Extractor, and Baldwin promises to provide design requirements and specifications. In Article Two, the Agreement grants Baldwin a worldwide license exclusive to Baldwin and its sub-licensees to use the pertinent inventions and designs disclosed in the Patents 1  and any proprietary information regarding the Extractor. AEI retains all remaining intellectual property rights to the Patents. In consideration of the licenses, Baldwin agrees to make certain royalty payments to AEI described in Article Three of the Agreement. 5 In October of 1998, the two sides signed an Addendum to the Agreement further agreeing to previously agreed upon matters with one particular exception. The last sentence of the addendum states: If the contract is terminated per Article Seven `Term and Termination,' all patents developed under the contract that pertain to the rotating system `Extractor' technology and any supporting hardware necessary to allow the system to rotate and/or enhance rotation capability will then be assigned to AEI. 6 Baldwin ultimately terminated the contract in February of 2002.