SpaceX secures Velo3D licensing and service agreement in $8 million deal
September 17, 2024
Velo3D has entered into a licensing and support agreement with SpaceX, in a deal totalling $8 million. As stated in a Form 8-K, published by the United States Securities and Exchange Commission, Space Exploration Technologies Corp (SpaceX) is granted a license to Velo3D’s Additive Manufacturing technology and will also receive a range of engineering and support services.
The agreement states that SpaceX will pay Velo3D a fee of $5 million for the technology license and a further $3 million for the provision of related engineering and other support services.
SpaceX has purchased at least 22 Velo3D Sapphire Laser Beam Powder Bed Fusion (PBF-LB) metal Additive Manufacturing machines, using them to produce a range of components including the Raptor 3 engine.
Regarding Velo3D’s technology, SpaceX has been granted a worldwide, non-exclusive, royalty-free, and perpetual license. The license will allow SpaceX to use, manufacture, modify, and develop Velo3D’s technology for its own internal operations. The license covers not only the existing technology as of the agreement date, but also any improvements or modifications made to the technology by Velo3D over the next 12 months.
The license agreement confirmed that all IP embodied in the Velo3D technology, including any improvements made by Velo3D, shall remain the sole and exclusive property of Velo3D. Any such improvements made by SpaceX shall be owned entirely by SpaceX, with no obligation to provide Velo3D with any source code, executable copy or documentation comprising any such improvements.
It was added that Velo3D shall give SpaceX all assistance reasonably required to perfect such rights to any such improvements made by SpaceX, at SpaceX’s expense.
Clauses regarding bankruptcy were included in the document. Here, it was stated that all rights and licenses granted by Velo3D to SpaceX under the agreement will follow Section 365(n) of the United States Bankruptcy Code. Subject to SpaceX’s rights under this code, all rights, licenses, and privileges granted to SpaceX would continue, subject to the respective terms and conditions. SpaceX would also be entitled to complete access to all IP, subject to the license, if not already in SpaceX’s possession.
Velo3D delivered its first Sapphire system in 2018 and has been a strategic partner to companies such as SpaceX, Aerojet Rocketdyne, Lockheed Martin, Avio, and General Motors.
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