Like many licensing arrangements, the customer, or “Licensee”, pays REELEX system usage fees, or “royalties”, that are based upon the production capability of the REELEX coiling machines that they own or rent. These royalties are typically paid annually for those that own up to two REELEX machines, and monthly for those that rent equipment.
For large manufacturers operating three or more coiling machines, the annual fees are based upon a customer’s annual sales volume of REELEX packages. These are considered "variable" fees. More information on the Royalty schedule structure can be found here.
The Royalty fees are collected from ALL REELEX licensees. Everyone with a D-750 pays the same fee regardless of how long they have been a customer, or how many machines they have. The small companies can compete equally with large companies with no favoritism. These royalties keep REELEX in business so we can continue to provide parts, service, know-how and decades worth of R&D to our customers. Without the royalty fee REELEX would be out of business very soon, and so would service and parts to support over 300 active REELEX machines, over 100 major cable producing facilities and thousands upon thousands of distributors around the globe.
Current Royalty Fees
Please see: Royalty Fees