THE "HIJACK BUSTER"® auto anti hijack and theft deterrent system INFRASTRUCTURE CONT. 27. We have ongoing scheduled demonstrations and demonstrators can be dispatched to sites to educate the public on how the system works. We have a demonstration acheduled on Sept 24, 1993 at the Sherman Oaks War Memorial Park, Senior Citizen Center. 28. Our legal counsel has advised us that our product the "HIJACK BUSTER" is perfectly within legal guidelines, and that there would not be any direct legal problems associated with our concept. Our legal counsel is an experienced attorney who also happens to be an entrepreneur. We feel very fortunate to have his sound advice available to us in our product commercialization. crowdfunded offering disclosure of "Freedom-to-Operate" FTO Analysis risk of infringement identified before product launch identifying third-party IP Patents, copyrights, trademarks, and trade dress A. Freedom-to-Operate Analysis An FTO analysis generally follows a three-step process: (1)deconstruct the planned or existing product into its component parts; (2)perform a search for relevant patent literature with non-expired, enforceable claims; and (3)assess the claims of the relevant art and compare those claims to the product to determine the likelihood of infringing third-party patent rights. Business-oriented approaches include: •Play the waiting game. In other words, launch the product and wait to see if the patent holder approaches you to take a license. •Abandon the project. Though not the optimal outcome, if a third-party has carved out broad protection and has a history of aggressively enforcing its patents, this may be the least expensive option. Ideally, the decision to abandon the project would be made before launching a crowdfund offering. •Propose a merger. A company well positioned with its own IP, talent, or other valuable assets may be able to generate merger interest from the patent-holding party. Alternatively, a company can pursue research-and-development options: •Design around. Come up with a novel product design that falls outside the scope of the third-party patent, or incorporate product designs already within the public domain. This can be done by practicing the prior art, assuming that prior art is not covered by its own separate patents. Finally, legal options can also help mitigate infringement risk. •In-license. Pay the patent holder for a license. •Cross-license. In a situation where a crowdfunded company owns its own patent on its product, it may license that patent to a patent holder in return for a reciprocal license under that party’s patent. •Seek to invalidate the patent. This option may be prudent where the FTO analysis identifies invalidating prior art that the patent office failed to identify during examination. There are several mechanisms available to attempt to invalidate patent claims, and proceedings can be before a court or the U.S. Patent and Trademark Office. 29. We have tested our models I and 2 on autos for over seven weeks. One of our test autos was broken into and hot-wired but our unit saved the auto. 30. We are currently advertising for alarm installers and electronic assemblers. Of the two weeks we have run the ad. in the Valley Recycler, response averages 3-4 calls a week. 31. Our business plan is being written by Gerald Krug,he is now developing a business course for on-line students. 32. According to an article in the Los Angeles magazine,we have developed a sensor that kills the ignition only if the auto has come to a complete stop, thus satisfying future insurance company requirements. 33. Our company is currently investigating asset protection services. 34. Future plans of GDK Electronics includes child locators or C.H.I.L.D. a cellular hailing individule locator device. 35. We are developing an eprom computer program that effectivly puts our entire unit functions from prototype onto a single chip. We feel confident in saying that we have the state of the art anti carjacking unit,the very finest system on the market today. We believe we have a winning concept for the investor who can see this vision with us, and chooses to participate in an extremely profitable business and wonderful service to society in combatting crime with technology.
