Common use of Channels Clause in Contracts

Channels. The product is sold directly to the different customers. The customers are primarily assisted living facilities that can distribute items to their residents. The same applies to care facilities and their residents. A third segment are persons-in-need living independently at home, respectively their relatives, who gain a level of safety from using the developed product. There are three main components. The system has to be developed into a product, typically in a development contract between the care technology provider and Fraunhofer. To license the background IP, a licensing contract between the two parties has to be drawn up. Finally the care technology provider has to source the system from an integrator. The revenue streams are primarily the input from direct sales and to a lesser degree maintenance contracts. It can be foreseen to have upgrade options available.