1st June 2020
I am pleased to advise that an agreement has been reached between Programmed Timber Supplies and my company concerning license fees, which will become effective from July 1 this year.
As you would be aware, our long term and successful Turb-O-Web licensees purchase their Turb-O-Webs pre-cut from Programmed Timber Supplies, and have all done so for many years.
A few years ago Turb-O-Web entered into an arrangement with Programmed so they could effectively manufacture pre-cut Turb-O-Webs under license. The result of this was they could supply pre-cut Turb-O-Webs to new plants joining the system without those plants needing to pay a separate license fee to my company. Programmed Timber Supplies paid a license fee to my company, which was funded via an adjusted sell rate.
It was always most important that existing long term and valued licensees were in no way disadvantaged by this agreement, which would have meant an upwards adjustment of their web purchase rate. A direct license with us remained more cost effective than the Programmed Timber Supplies arrangement at that time.
In mutual agreement with Programmed Timber Supplies it is now felt to alleviate any confusion only one clear arrangement should be in place for all Turb-O-Web users, and that arrangement should not disadvantage existing users with direct licenses.
After negotiating with Programmed Timber Supplies it has been agreed PTS will cover the fees of current direct license holders when they are the supplier of Turb-O-Webs. In these circumstances no separate license fee would be payable to us .The best part of this arrangement is that Programmed Timber Supplies will not pass this cost on to existing customers. Effectively this means Programmed Timber Supplies will cover current direct license holders cost. This will be a true and direct saving.
PTS advise they are now able to make this contribution as a direct result of their economy of scale with their new production capacity and process improvement in manufacturing Turb-O-Webs.
The relationship between frame & truss plants, Programmed Timber Supplies and Turb-O-Web has always been strong and mutually supportive. For year after year and through times of general timber shortage and other fluctuations Programmed Timber Supplies have committed to the full, regular and dependable supply of a quality product.
It must be noted however that Turb-O-Web has held and still holds intellectual property rights over the design and application of the system. It is not allowable for their use without an agreement in place. Therefore any plant not relying on Programmed Timber Supplies for their needs still needs to hold a direct license with Turb-O-Web as at present.
The number of Turb-O-Webs used in Australia is currently higher than any time in the past. The value benefit to plants is now more broadly recognised as demands on labour, capital and other expenses continues to increase. It is pleasing that Programmed Timber Supplies is increasing their capacity to ensure the ongoing reliability of supply across all their product range.
Turb-O-Web is still actively supporting the technical elements by being on hand at any time to assist with enquiries that will enhance and provide even greater advantage for plants.
This new arrangement will commence from 1 July 2020 and will apply to all existing direct licensees.
If you have any questions or are not satisfied with this generous offer, please contact me directly. Programmed Timber Supplies will be in contact shortly to confirm the arrangement.