Research note, page-20

Finally had the opportunity to review the AER Applications of both LPE and Ultium.

No doubt the Ultium Application is almost a word for word copy of LPE's Application. LPE claims that they own the Copyright to the material, but Ultium claim that Jason Hague is the original author of the document and as such owns the Copyright. Since this all originated in Queensland, we can use the following website: https://www.business.qld.gov.au/bus...fo-kit/browse/employees-contractors/ownership

The issue is not clear cut, but in reading the Qld Business Website it looks like LPE have a point:

"As a general rule, an employer will own the intellectual property created by its employees in the course of their employment. However, intellectual property that is created by an employee, other than in the course of employment, is owned by the employee, not the employer.
What does 'in the course of employment' mean?
The most important single factor in deciding ownership of intellectual property created by employees is whether or not the employee had a duty to create intellectual property as part of their employment duties.
An employee who creates intellectual property in the normal course of their duties cannot claim to own that intellectual property.
However, if the employee is not employed to create intellectual property, but does so, then the employee will own the intellectual property. Consideration needs to be given to all the circumstances:

1. How are the employee's duties described in any written employment contract?
2. Are there duty statements that record the duties of the employee's position?
3. Did the employer direct the employee's activities that led to the creation of the intellectual property?"

No idea how this will play out, but you would think the AER will need to involve their own lawyers to at least cover off this issue.

LPE's Application took 3 months to get approved. Ultium's Application was lodged in November, and Ultium expressed their intention to start offering retail services in electricity from 1st January 2017. Wishful thinking - was never going to be approved in that time frame. 3 months takes them to at least February. Given the Xmas holidays delay, plus the legal issues involved, it might still be a way off before a decision is forthcoming.

Ultium will have immediately post retail licence approval only 6 direct employees (same as what LPE applied with) - Jason Hague plus a Business Development Officer, Compliance Officer, Customer Service / Crisis, Operations Manager, and Chief Financial Officer who are all currently listed as TBA. In addition to this, however, Ultium will "facilitate recruitment of specialists for operations". Ultium's Business Plan is to "secure 12 service contracts in the first 12 months". Their website is currently under development.

The bookies odds favor them with being provided a license - eventually - and giving LPE some strong competition - eventually. In the meantime we can continue to focus on growing our business.

Looking forward to our first $2m PLUS receipts quarter. Maybe the March Quarter of receipts will give us our missing $0.5m - occupancy rates peak over the holiday period, with additional electricity obviously required.

Happy New Year to all posters and hope you had a merry and safe Christmas.