Platinum Research Organization, Inc.(fka PLROQ)

[shaw]

Mea culpa. I stand corrected. I did not do a thorough patent search...Here is what I could see from the 2 patents you mentioned.

ExxonMobil Research and Engineering Company, Patent 7,183,241
A lubricating oil with very low phosphorus content, and having long life as evidenced by a reduction in viscosity increase, oxidation and nitration, comprises a major amount of a base oil of lubricating viscosity and a minor amount of a mixture of neutral and overbased metallic detergents, at least a zinc dialkyldithiocarbamate and a zinc dialkyldithiophosphate antiwear additive and at least a dihydrocarbylthiocarbamoyl.
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsear...

See where it mentions "zinc dialkyldithiophosphate antiwear additive" in the last sentence...that's the long name for ZDDP. This patent covers an oil with lower phosphorus content but it still has it -- ZDDP that is. This patent was issued prior to PLRO's patent, if they were competing, then PLRO's patent would be disallowed as there would be "prior art" as the patent attys call it. There are many subtlies with regard to how broad or narrow the patent claim is and I am not a patent atty so I cannot speak to this in great depth. See:
http://www.iusmentis.com/patents/priorart/

I could not find the exact patent you referred to for NewMarket. They own 2 companies, Ethyl and Afton, and each has multiple patents but I did not find a match. I'm sure its there somewhere but I couldn't find it.

Given I am not an engineer or a patent atty, I can only use my so-called common sense. As I have stated in other posts, I have to assume that the prior investors looked at these patents to evaluate their potential market and their validity. With the recent Ser A preferred closing last week, another $4.5 million was invested and I am sure that most of it will go towards R&D and commercializing the technology.

To assess the other 2 patents, we would need to know about production costs etc to determine if they are competitive from those angles as well.

If a war starts with a company like Exxon? You can make the argument that the big guy will win out but there are other players and alternatives. It is possible that ExxonMobil will simply buy the technology from PLRO instead of "going to war". Buying it gives them 100% assurance that they don't lose, in a fight there is the possibility of losing.

Another factor is that Exxon is not the only big guy on the block. PLRO could team with any number of other oil companies or specialty chemicals companies which would strengthen their hand against an Exxon. Why would the other oil / petrochemical companies want to by from Exxon - their direct competitor.

Lets not forget that PLRO is not a one trick pony with just the engine oil market. You can read further if you wish at the bottom of the post.

shaw

From the investment report:

Engine Oil. The greatest market potential for TechroBond appears to lie in its ability to drastically reduce the amount of ZDDP required in engine oils. PRO states that multiple laboratory tests at UTA and elsewhere have demonstrated that TechroBond offers significantly improved wear protection and mechanical efficiency than ZDDP with much lower levels of phosphorous and sulfur emissions. Another benefit of TechroBond is that, unlike ZDDP, it protects metal surfaces even at room temperature. The most important implication of this property is that most engine wear occurs just after startup, before complete lubrication. According to the Company, laboratory tests with a Big-Three U.S. automakers showed that oil formulated with TechroBond and 0.01% phosphorus could protect engines as well as GF-4 oil with ZDDP and 0.08% phosphorus.

This is expected to result in fewer deposits on catalytic converters and lower overall tailpipe emissions. The reduction
in phosphorus glassification also has the potential to lower mechanical friction, which could lead to very significant
improvements in fuel efficiency. The Company continues to collaborate with the Big Three automakers and a large lubricant additive firm to run two standardized anti-wear tests and an EPA-certified emissions test on motor oil with TechroBond.

Extensive engine and bench testing still must be performed to optimize oil formulations, followed by a field test of the PRO technology. The battery of tests is estimated by management to cost $2.5 million, the cost of which is likely to be shared with joint venture partners. The Company intends to introduce specialty engine oil with its formulation by 2009. The commercialization strategy will be to produce its product in-house for sale to engine oil additive companies and charge them licensing fees. PRO may also form strategic relationships with anti-oxidant manufacturers to develop specialty oils.

PRO believes that because of the small amounts required, production costs for TechroBond will be roughly approximately
$0.02 per quart, with blending and process costs of $0.01-0.02 per quart, which is roughly equivalent to or lower than the per-quart cost of ZDDP.

PRO continues to advance its research into fluorinated compounds in an effort to develop a complete replacement
for ZDDP. Research has indicated that nanoparticles of fluorinated transition metals (iron, titanium, zirconium and
aluminum) can act as catalysts to coat metal surfaces with self-healing films of low-friction compounds similar to Teflon™ (polytetrafluoroethylene or “PTFE”), such as organofluorophosphate and organoflurothiophosphate.

Greases. The first targeted opportunity for PRO in this sector is to commercialize greases with greatly reduced or no molybdenum disulfide content, because the price of molybdenum has escalated from $3 to as high as $40 recently.

A recent report from UBS Investment Research predicts that molybdenum disulfide prices will remain elevated and average $22.50 in 2007 due to strong demand6. Molybdenum disulfide also exhibits poor performance under some heavy load conditions, according to PRO.

The first commercial use of TechroBond commenced in the fourth quarter of 2006 with the introduction of a lithium thickened
railroad curve grease containing the compound. A specialty lubricant manufacturer, the Whitmore Group (“Whitmore”) (www.whitmores.com), is marketing the product under a licensing and distribution agreement. The grease was shown in field tests confirmed by a lubricant testing company, Falex Labs (www.falexint.com), to offer a 19.45% improvement in wear protection for rails than competing formulations, as well as corrosion protection. The cost is substantially lower, primarily due to a reduction of moly content from 3% to 0.5%. Whitmore’s largest customers are the BNSF and Union Pacific railways, and management believes that is likely to increase its use of the PRO product when their contract for molybdenum expires in 2007. PRO and Whitmore intend to continue to collaborate for the development of additional applications, including a lubricant for CV joints, which are present in all automobiles.

PRO is also targeting the heavy duty, construction and industrial grease markets by pursuing alliances with grease
additive firms, many of which are diversified chemical companies, as well as marketing directly to grease manufacturers. Global grease additive firms are desired for such alliances because of their large sales volumes, and the Company is collaborating with such companies to formulate products with the intent of structuring marketing alliances if tests conclude favorably. Results are expected anytime and PRO believes revenues could commence in 2007.

Major grease manufacturers are also testing PRO’s technology internally and the Company reports that the results
have been positive so far. Field tests would follow successful bench tests, with distribution agreements to be negotiated
in 2007. PRO intends to manufacture TechroBond for sale to the grease companies and charge them a licensing fee as well.
Specialty oils. PRO is targeting the markets for hydraulic oils, gear oils, transmission fluids, cutting fluids and heavy duty engine oils for the 2008 time frame. Testing is yet to be completed, and potential partners include some of the companies with which the Company is currently collaborating for engine oil and grease products.

Oil additives. PRO is working with additive companies and a major auto company to evaluate additive formulations using TechroBond. Testing would be required for these applications and would likely take several months to complete, so revenue from this line of business could not be expected before late 2007.

Aftermarket Additives. Another application that the Company is pursuing in the near-term is automobile aftermarket additives. PRO is evaluating aftermarket product companies that have brand recognition for the potential formation of a partnership to market an additive with TechroBond. PRO would supply TechroBond and the partners would share the revenues. Another possibility is the outright purchase of a brand name with recognition in this market.

Coatings. An key property of TechroBond is its potential to create self-healing surfaces by continually forging a bond between a medium and a substrate. This property has potential value for the paint and coating industry, which is an $18 billion dollar market. Potential applications include anti-friction, anti-graffiti, corrosion resistance, mold release, flame retardancy and de-icing formulations for paints and coatings. Airbus and Alcoa have been participating in studies using PRO technology in an application for corrosion prevention in aircraft. There is a myriad of other licensing opportunities for coatings applications, and relationships are being forged to develop them.

PRO has several projects already under development in this area and new initiatives are scheduled to begin in January 2007, aided by new funding. The new projects include a mold-release agent to assist the removal of parts from diecasting, rubber forming, composite manufacture and similar applications. PRO will also pursue the development of anti-corrosion treatments for aeronautical and marine uses, as well as a product to prevent graffiti and organic material
from adhering to treated surfaces.

MEMS Applications. PRO is developing a new, non-oil-based lubricant for the micro electro mechanical systems(MEMS) industry. The lubricant uses a silicon lithography technology designed for closed systems that can only be lubricated at the time of manufacture, often under vacuum conditions. There are potential applications in medical, aerospace and automotive industries.