(UPDATED below with statement from IH)
(Also UPDATED with response from Andrea Rossi).
(June 2: IH filed motion to dismiss lawsuit—link below).
First of all—
we now know that the one-year 1MW test was very successful and that the E-Cat and LENR is a technology field that will fundamentally change the world. [Admittedly premature. We haven’t seen the report yet]. More about this later. In any case, let’s wait for the detailed report for final confirmation. Champagne is still on ice.
On Wednesday, April 6, I received a press release from the lawyer representing Rossi’s company, Leonardo Corp., about a lawsuit on Rossi’s US licensee Industrial Heat (IH), its representatives Thomas Darden and JT Vaughn, and Darden’s main company, Cherokee Investment Partners. Link to the case docket is here.
I was first somewhat surprised, but reading the documents and adding info that I have received during the last months, things became clearer.
I recommend you to read the complaint and the license agreement between Rossi and IH (see below)—it tells a detailed story of what has been going on during the last years, and one good thing about the lawsuit is that all this info, originally protected by NDA, is now open.
Rossi and IH entered an agreement in October 2012 (as I also report in An Impossible Invention), on which Rossi was paid $1.5M.
A 24h Validation Test was performed in May 2013 with a plant consisting of 30 E-Cats. After successful completion Rossi was paid $10M, and he transferred all the necessary IP for the E-Cat and its fuel to IH.
Now things are getting interesting. The license agreement defined that IH acquired a license for North and South America, China, Russia, Saudi Arabia and the Emirates, to sell and manufacture E-Cat based products, but the IP remained property of Leonardo Corp. Yet IH stated that it had acquired the technology from Rossi, apparently in order to raise more money (we know that at least $60M was raised, of which about $50M from UK based Woodford).
IH then delayed the one-year test—the ‘Guaranteed Performance Test’. If successful, with at least six times more energy output than input (COP>6), IH should pay Rossi $89M (or less at lower performance). And although the test was finally undertaken, and successfully concluded recently—producing over 50 times more output energy than input energy (!), validated by two experts, paid for and chosen by IH and Rossi—IH never paid Rossi (we will probably soon see the full report that was delivered to Rossi and Darden on March 29).
Instead, it turns out from Leonardo’s lawsuit that IH (Darden and Vaughn), made a series of maneuvers to avoid undertaking the one-year test, to avoid risking the billions in Cherokee’s fund, while trying to get hold of the E-Cat IP, sharing it with Rossi’s competitors in which IH was investing, and even filing patent applications based on the IP transferred from Rossi, nominating other inventors than Rossi.
These claims are supported by independent information I have received lately (not from Rossi), on people connected to IH, actively trying to engage experts in the field to work on replication of Rossi’s effect, while telling various stories about Rossi, all indicating that IH might have been missing some essential info, or at least wanted to get this info before paying Rossi.
Furthermore, in the lawsuit, Leonardo demands a trial by jury. Everything out in the light.
This doesn’t fit well with the hypothesis that Rossi is a fraudster and that IH knew this and therefore tried to get away from him. Not a bit.
But even if all the claims in the lawsuit are true, it’s not obvious that Darden and Vaughn had these intentions initially, as Torkel Nyberg points out on his blog Sifferkoll.
IH might have been pressed by investors’ expectations, while not being sure of having all the technology details. IH can even have been approached by more powerful entities, seeing the E-Cat as a threat, or wanting to secure the technology for the US, without depending on Rossi.
We don’t know this. And to settle the case might take years, unfortunately. In any case—the public statement from IH a few weeks ago now comes into another perspective, looking more like damage limitation, with support of the well-known PR agency APCO Worldwide.
The good part is that all this info now is public, that the one-year 1MW was successful, and that commercially viable LENR is here to stay, and that it will change the world.
As for the New Energy World Symposium, I’m very close to take the final decision to hold the event now.
Files regarding the lawsuit:
[Update June 2, 2016]: IH-motion-to-dismiss
[Update June 18, 2016]: Rossi’s response to IH’s motion to dismiss
UPDATE (April 7): Industrial Heat has issued a statement in response to the lawsuit by Rossi and Leonardo Corp. It starts:
“We are aware of the lawsuit filed by Andrea Rossi and Leonardo Corporation against Industrial Heat. Industrial Heat rejects the claims in the suit. They are without merit and we are prepared to vigorously defend ourselves against this action. Industrial Heat has worked for over three years to substantiate the results claimed by Mr. Rossi from the E-Cat technology – all without success.”
I’m still waiting to see the report, but if it confirms the data that Rossi has given—a COP over 50, validated by the ERV chosen by Rossi and IH together—and if it’s true that IH has had its staff present at the test all the time, even bringing representatives for UK based Woodford to the plant to make due diligence and then receiving $50M in funding, I would find it quite difficult to understand that IH has not been able to substantiate the results claimed by Rossi. Maybe IH has not been able to replicate the effect themselves. But in that case I guess that they should kindly ask Rossi for help.
(UPDATED April 8): Rossi earlier said he couldn’t comment the ongoing lawsuit, but after IH’s press release above, he responded to some questions on his blog, Journal of Nuclear Physics. I have chosen to publish three of these comments, which I think speak for themselves:
- Andrea Rossi
April 7, 2016 at 7:27 PM
I have to comment the press release of IH, being a press release and not a forensic act.
They made the Lugano reactor ( they also signed it ) they made many replications of which we have due record and witnesses, they made multiple patent applications ( without my authotization ) with their chief engineer as the co-inventor ( he invented nothing ) , with detailed description of the replications , they made replications with the attendance of Woodford, after which they got 50 or 60 millions of dollars from Woodfords’ investors, they made replications with the attendance of Chinese top level officers, after which they started thanks to the E-Cat they made an R&D activity in China in a 200 millions concern, they made replications with an E-Cat completely made by them under my direction the very day in which the 1 MW plant has been delivered in Raleigh, they made replications that we have recorded. After the replication they made with the attendance of Woodford in 2013 Mr Tom Darden said publicly: ” this replication has been stellar” ( witnesses available). But this is not the place to discuss this. We have prepared 18 volumes to explain exactly and in detail the activity of our “Licensee” and his acquaintances from 2013 to now. Until they had to collect money thanks to the E-Cat, they made replications and have been happy with the E-Cat; when it turned to have to pay, they discovered that they never made replications, that the ERV that they had chosen in agreement with us was not good, that the test on the 1 MW plant, thanks to which they collected enormous amounts of money from the investors and where I put at risk my health working 16-18 hours per day was not a good test ( but for all the year of the test they NEVER said a single word of complaint, even if they had constantly their men in the plant), etc etc. But the worse has still to come out. The worse is in the 18 volumes we will present in due time, in due place. A blog is not the right place to discuss a litigation. This is only a quick answer to the press release made by IH.
- Andrea Rossi
April 7, 2016 at 8:32 PM
They prepared everything, the charges, the body of the reactor EVERYTHING !!!.
I just teached to them what to do.
They never used anything pre-prepared by Leonardo Corp.
Now, let me talk to you of a very singular coincidence: Brillouin has always made only electrolytic apparatuses: go to read all their patent applications made before their agreement with IH, and you will find confirmation of what I am saying ( I know their patents by heart, because I have studied them and probably I know them better than themselves : I wrote about 100 pages of notes about their patents ). And now the singular coincidence: they make the agreement with IH in April 2015, and Voilà, they made a public demo in Capitol Hill ( Washington, DC) with a device that is the Copy-Cat of something I am familiar with. Nothing that Brillouin has ever made before the agreement with IH. What a coincidence !!!
- Andrea Rossi
April 7, 2016 at 9:09 PM
In the press release of IH they write that ” for three years they tried to replicate the Rossi effect, with no avail”: very good, but during those three years Industrial Heat collected about 60 million dollars from Woodford, more millions from other sources, exclusively based on my E-Cats technology. This before making shopping to buy other patents. Now, the cases are two: either they are lying when they say they didn’t replicate, or they made a fraud collecting 60 millions from Woodford, more from others, not to mention Cherokee fund. You had to see Tom Darden and JT Vaughn dance like ballet etoiles around the investors, showing them the E-Cats, and telling them that the E-Cats had been built by them! “Stellar” coherently Darden, in his role of etoile, repeated to the enchanted attandees, ready to spend 50 millions. Now, that my bill arrived, the E-Cat had not been replicated , they say. For three years.
Again, I am just answering to a press release of IH.