ENTI Turnkey IP Turns $1.75M Revenue in Milestone Agreement
NEW YORK, NY, Jul 15, 2010 — Encounter Technologies, Inc. (PINKSHEETS: ENTI) CEO, Rick DiBiase, is pleased to announce that the company has sold its patented Video Sales Platform (VSP), a concept designed for the Internet Yellow Pages Industry, to a corporate purchaser for 1.75 million dollars.
The deal took place in the wake of what was originally to be Encounter’s own launch of the platform, until it was evident that the company could secure revenues without letting go of the software itself. Negotiations won Encounter the right to sell VSP under non-exclusive terms, which means, “We receive the money and also keep the ability to develop and market the technology,” states DiBiase. “This was a win-win deal for certain as, first and foremost, we’ve proven to monetize an intangible asset in development to the tune of nearly 2 million dollars.”
The Agreement is understood by both parties that the purchaser name will stay anonymous and will wholly acquire VSP for $1.75m, but because the software platform can be tweaked for a number of applications and potential business models, it was agreed to forego any non-compete clause and left rights to the base VSP technology with ENTI, resulting in Encounter’s ability to still develop a solution with the software for its own use. “It’s the great thing about Intellectual Property: so long as the agreement allows, you can monetize the IP in several different fashions, even concurrently, which allows for additional company reserves as well as substantial operating and development capital which we feel is quite an advantage for ENTI and its shareholders.”
Encounter will continue to develop the software in-house for its own unique offering to the independent Yellow Pages publishers online, utilizing an aggressive mass media marketing campaign paired with a high-profile celebrity spokesperson. “We have some great ideas for the VSP technology that we’ll be developing as we forge ahead with the booming MusicMatrix.com, announcing its celebrity spokesperson in the coming days, in line with our strategic DISH Network campaign and progressive internet hits.”
Look forward to the company’s Investor Re-cap call tomorrow! Call update will be available at 10:00am EDT on Friday, July 16th, 2010. The call can easily be accessed by dialing the toll-free number, 800-642-1687, in the US and Canada or 706-645-9291 for international calls. Simply dial in the new conference code, 78255016, when prompted.
About MusicMatrix.com On MusicMatrix.com, users are able to participate in music video editing competitions in order to win both prizes and recognition. Encounter Technologies, Inc. (ENTI) has developed a cutting edge, innovative, and simple to use platform for MusicMatrix.com, which facilitates the video uploading, editing, sharing, and viewing experiences. By creating an environment which rewards both innovation and creativity, users are given the incentive to implement their own unique online marketing campaigns in order to expose a particular artist or song to populations and demographics not typically reached through standard mass campaigns.
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Forward-Looking Statement: This press release includes “forward-looking statements” within the meaning of the federal securities laws, commonly identified by such terms as “believes,” “looking ahead,” “anticipates,” “estimates” and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.