Licensing Agreements for Medical Technology

3 Months Ended

Sep. 30, 2014

Licensing Agreements For Medical Technology [Abstract]

Licensing Agreements For Medical Technology [Text Block]

13. Licensing Agreements for Medical Technology

In October 1996, the Company entered into a License Agreement (the "USS License") with United States Surgical (now, Covidien) for a twenty-year period, expiring October 2016, covering the further development and commercial exploitation of the Company's medical technology relating to laparoscopic products, which uses high frequency sound waves to coagulate and divide tissue for both open and laparoscopic surgery.

The USS License gives Covidien exclusive worldwide marketing and sales rights for this technology. Under the USS License, the Company has received $475,000 in licensing fees (which are being recorded as income over the term of the USS License), plus royalties based upon net sales of AutoSonix products. Total royalties from sales of this device were approximately $1,121,000 and $885,000 for the three months ended September 30, 2014 and 2013, respectively.