Quarterly Report is now available.
Cell Phone Translator agreement Terminated
(15) Cell Phone Translator Transaction
In October of 2007 the Company agreed to acquire the rights to a patent pending Cell Phone Translation technology from the developer of the technology Mr. James Smith. Since entering into the transaction the Company has experienced a variety of opinions from industry experts regarding the viability of the patent pending technology developed by Mr. Smith. The Company’s research reveled several similar patents that had previously been granted and in some cases to Company’s with substantially more resources then that of FTS Group, Inc. In addition, the original engineer that had worked with Mr. Smith in filing the original patent application was not available to complete the project. FTS management along with Mr. Smith then endeavored to find an industry expert to evaluate the viability of the patent and potential of the underlying technology. In May 2008, the Company entered into an agreement with Packer Engineering, a firm with 45 years of industry experience and expertise in technology inventions and the patent process. Packer delivered a detailed report to the management team of FTS for evaluation. Upon receiving the report, FTS retained an experienced patent law firm to further provide it with additional information regarding the viability of the patent and the potential risks and costs relating to a patent on the underlying technology being granted. Upon reviewing all of the information gathered from the patent attorney and a full review of the Packer Engineering report, management determined that it is not feasible or realistic to assume the Company would be successful in securing a patent on the technology underlying Mr. Smith’s patent application. Consequently and effective June, the Company has notified Mr. Smith that it has terminated all agreements with him relating to the cell phone translation technology and patent application.
AI
