This is Great News for AVT...
AVT to Generate Recurring Revenues After Patent Found Enforceable by U.S. Patent Office
Licensing deals could provide millions per month in recurring revenues
CORONA, Calif., June 3, 2013 /PRNewswire/ -- AVT, Inc. (OTC Markets: AVTC) (www.autoretail.com), a technology leader in developing automated retailing systems, customized kiosks and micro-stores, announced that they have signed up several substantial accounts as licensees of their patented wireless control system. This patent covers 19 uses, including cashless transactions conducted by a vending machine through a wireless system.
AVT's patent (U.S. Patent Number 8,191,779), was recently upheld and found enforceable by the U.S. Patent Office. Subsequently, AVT began the process of providing these patented services to their customer base, as well as bringing other manufacturers and operators into compliance through licensing arrangements.
Currently, it is conservatively estimated that there are over 5.5 million vending machines being used across the United States. According to the Vending MarketWatch 2012 State of the Industry Report, an estimated 3.7% of vending systems in the U.S. are cashless systems – the type that would fall under AVT's patent. This market of roughly 200,000 machines is AVT's current universe of systems that are likely infringing on their patent and are candidates for licensing.
This market will continue to grow as more vending manufacturers and operators are seeing the advantages of offering cashless payment systems. It is estimated that the addition of credit card acceptance methods would increase vending machine sales by up to 40 percent. Moreover, industry experts say that the addition of cashless payment technology would allow owners of vending machines to offer higher-end merchandise with less price resistance.
James Winsor, CEO of AVT, stated that the company now plans on bringing most, if not all of those 200,000+ machines into compliance. "We are in the process of offering a license to use our technology to the larger companies in this industry," he stated. "We have already signed up several major vending operators, and are confident that this trend will continue."
