Competition

In the general area of signal science-technology, detection, acquisition and processing performance of systems continues to improve, through the use of ever-faster electronics. In addition, predictive feedback (using historical input data) and feed-forward (open-loop) control systems are also used to improve the performance of such systems. With feed-forward methods, the control system responds directly to changes in the input (rather than variations in the output) and is thus faster.  Hybrid predictive methods combine aspects of both feedback and feed-forward control and may use historical data. These methods are currently used throughout the industry and, in some systems, may be adequate. Faster electronics will reduce, but never completely eliminate the delays, let alone temporally advance the detection of signals. In addition, SAT, when used in conjunction with these other approaches, could further improve performance.

SAT offers unique advantages over these other methods. It can potentially eliminate response delays entirely and may even yield a net temporal advance. Unlike other methods, SAT is not implemented digitally; it operates on analog signals using analog circuitry – thus does not rely on digital processing techniques. In general, analog circuitry operates at much faster speeds than digital circuitry. The analog nature of the technology translates into lower component costs and increased reliability. Further, given its unique mode of operation, SAT can be implemented in conjunction with more traditional methods, and thus may further increase performance gains achieved.

SAI is not currently aware of other parties commercializing this type of technology. However, the Company’s own success will likely precipitate competition as recognition and acceptance of SAT grows. This competition may include infringement in which others attempt to distinguish minor variations in the technology, and legal machinations based on a larger, financially successful firms’ capability to engage in lengthy and costly litigation.

To date, searches and analyses of the patent and scientific literature have failed to reveal any prior art that negates the utility and novelty of SAT. The precision with which SA circuitry must be designed results from the need to accommodate the unique signal characteristics of any particular application. The design requirements form the basis for the claim that SA circuitry designed for particular applications will likely be separately patent-able.

In order to diminish the likelihood of the technology being co-opted by a market leader, our defense against copying and infringement includes these strategic elements:

  • Individuality of each SAT application will be protected by its own patent(s) multiple independent applications of SAT will not overlap or interfere with one another;
  • An attack on any one patent or application area will not affect others.
  • Licensees will be required to participate in the defense of the patents they have licensed. Any licensee failing to participate in defense of its licensed patents will be subject to license termination.
  • A licensing strategy that initially seeks licenses with smaller companies that are less likely to infringe and engage in litigation; and
  • Maintenance of application specific methods for developing SAT for specific sensors, signals, circuitry and operational parameters of specific applications are trade secrets held by SAI.
  • Patent, scientific and trade publications will be monitored to identify infringement and competition.

These methods provide SAI with technical and legal advantages that potential infringers would have to overcome requiring undue time and expense. Experience suggests that implementation of SAT can be more efficient with the provision by SAI of appropriate levels of consulting. Given the choice to infringe and implement with no assistance versus paying a license fee and receiving assistance, we believe most companies will choose the latter in order to decrease time to market, avoid the possible expense of litigation and provide liability, which taken together will result in more cost effective implementation.

Dr. Hymel, the Company’s CEO, is the inventor of SAT and has been working diligently in this field for a number of years. SAI is positioned to be the first to market with what the Company and others have described as disruptive technology. His doctoral research stands as the seminal investigation of the use of SAT with biomedical signals, specifically the human ECG. Based on its multi-year head-start and significant, SAI has established itself as the leader in the field thereby gaining a significant early competitive advantage.