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NASA Signs Licensing Agreement With New Jersey Firm For Further Development Of Energy-Saving Device

June 11, 1998

The term "power factor controller" is not exactly a household phrase. But the device itself is at work in countless homes and businesses - quietly saving electrical energy.

Now, with the signing of an exclusive licensing agreement between NASA and Power Efficiency Corp. of Hackensack, N.J., the stage has been set for even wider use of the device and further conservation of scarce energy resources.

Invented in the early 1980s at NASA's Marshall Space Flight Center in Huntsville, Ala., by now-retired NASA engineer Frank Nola, the power factor controller senses the amount of power needed by an electric motor. The device then varies the power according to the need. Laboratory tests show the controller can trim power usage by 6 to 8 percent under normal demand conditions, and by as much as 65 percent when a motor is idling.

With such remarkable potential for energy savings, the power factor controller quickly became one of NASA's most widely adopted "spin-off" technologies, incorporated in machines ranging from household refrigerators and washing machines to typewriters, kidney dialysis and industrial drilling machines and scores of other commercial products.

"Initially, more than 20 companies sought and were granted non-exclusive licenses for commercial use of the invention," said Bob Broad, chief intellectual property counsel at the Marshall Center. "NASA believes Power Efficiency Corp., one of the first companies to hold a non-exclusive license agreement, has distinguished itself and demonstrated the commitment necessary to develop the technology further."

Nicholas Anderson, president of Power Efficiency Corp. said, "Our success in marketing our energy-saving motor controllers is directly attributed to the relationship developed over the years between Power Efficiency Corp. and NASA. This relationship proves that great benefits can occur when individuals and government work together to develop technologies that reduce energy consumption."

Under the terms of the agreement, Power Efficiency will pay royalties to NASA and inventor Frank Nola until 2001, when the patent and the exclusive licensing agreement expire.

American businesses like Power Efficiency Corp. consistently benefit from NASA's research and development expertise. Technologies developed for the space program have enabled American industry to introduce more than 900 new or improved products for sale at home and abroad. This assistance to American business and industry is presently valued at $1.6 billion.

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