Rossi et al. v. Darden et al. (1:16-cv-21199), Florida Southern District Court.
The ongoing federal litigation between Andrea Rossi and the principals of Industrial Heat LLC has revealed some troubling documents and correspondence regarding the testing of the E-cat system. All of the filings and motions may be found here. Exhibit 5 – Is a list of questions IH’s engineer, Joe Murray, sent to Fabio Penon, the Expert Responsible for Validation (ERV), questioning some of the data from the preliminary reports issued by Penon. These questions include some troubling observations about the equipment and measuring techniques used. Apparently these questions were never answered and Penon has yet to respond to this lawsuit. Document 118-01 – Is a compilation of email communications between Andrea Rossi and the agents of J.M. Products, Inc. (JMP), the purported customer making use of the E-Cat’s excess heat. Rossi seems to exert an unsettling amount of control over JMP’s operation. In emails with James A. Bass, the Director of Engineering for JMP, Rossi appears to be “coaching” Bass on what to say to observers, with Bass asking Rossi, “My question is, will the people I meet tomorrow want to know anything technical?” In another email, Rossi tells an assistant to Henry W. Johnson, Rossi’s attorney and organizer of JMP, that he will transfer $500 from Leonardo Corporation to the JMP account, which had apparently been overdrawn.
Industrial Heat and IPH (collectively “Counter-Plaintiffs”) bring this action against Leonardo; Rossi; J.M. Products, Inc. (“JMP”); Henry Johnson (“Johnson”); Penon; United States Quantum Leap, LLC (“USQL”); and Fabiani.
Industrial Heat LLC has brought counterclaims against almost everyone involved in the Rossi project and makes allegations of fraud in the performance, review and testing of the E-cat.
Eventually Counter-Plaintiffs discovered that the test that Leonardo and Rossi were conducting, in conjunction with the supposed “customer” in Miami, was not a real test at all, but a carefully scripted effort to deceive Counter-Plaintiffs into 1) providing Leonardo and Rossi with credibility in their efforts to license and promote the E-Cat IP to others and/or obtain investments from others in their business ventures, 2) making the third payment under the License Agreement to Leonardo, 3) paying a multitude of expenses of Leonardo and Rossi including in connection with their operations in Florida, and 4) paying Penon and Fabiani for services not rendered and reimbursing them for unnecessary expenses.
Leonardo Corporation’s response to Industrial Heat’s motion to dismiss was entered on June 17, 2016. The document can be read here.
While all the facts of this particular case aren’t publicly known, this blog strives to be about the bigger picture and the potential of LENR. Andrea Rossi and Industrial Heat LLC make up just a small segment of the broader industry and we hope this unfortunate distraction does not detract from the attention, investment and encouragement all earnest LENR researchers deserve.
That being said, while disappointed, we reserve judgment on Andrea Rossi’s work and credibility until it can be openly and thoroughly vetted through whatever means necessary.
Industrial Heat, LLC (IH) has made a motion for summary judgment in the action brought by Leonardo Corporation seeking almost $100 million in damages. The full document is available at: https://animpossibleinvention.files.wordpress.com/2016/06/ih-motion-to-dismiss.pdf
In summary, IH argues their agreement with Rossi, coupled with the admissions in the Complaint, demonstrates that Plaintiffs’ central contentions are incurably flawed: The License Agreement required performance by Plaintiffs within a specific time period, which Plaintiffs acknowledge did not occur within that time period, and the License Agreement permitted IH and IPH – after having paid Plaintiffs over $10 million (which Plaintiffs admit was paid) – virtually unlimited usage of information they received from Plaintiffs.
Leonardo Corporation announced today, June 2, 2016, that it has terminated the license granted to Industrial Heat, LLC. for the Energy Catalyzer (“E-Cat”) technology. Effective immediately, Leonardo Corporation has the sole and exclusive right to the E- Cat intellectual property in all territories previously licensed to Industrial Heat, LLC. According to Leonardo Corporation, the decision to terminate Industrial Heat, LLC.’s license follows Industrial Heat, LLC.’s failure to pay the agreed upon licensing fee.
The license previously granted to Industrial Heat, LLC gave the company the exclusive rights to use the E-Cat intellectual property in the geographic territories of North America, Central America, South America, the Caribbean, China, Russia, Saudi Arabia and the Arabian Emirates.
In an effort to avoid any delay in making the E-Cat units commercially available in the above territories, Leonardo Corporation will be working diligently with its strategic partners to develop a new manufacturing and distribution strategy for those territories. For those customers located in these territories, all future inquiries regarding the E-Cat should be directed to Leonardo Corporation directly through its website.
As a result of its terminating Industrial Heat, LLC’s license, Leonardo Corporation has also demanded that Industrial Heat, LLC immediately assign all patents and patent applications based upon the E-Cat intellectual property to Leonardo Corporation, or abandon these applications in all jurisdictions.
Additional information is available at www.ecat.com.
Contact: Leonardo’s attorney John Annesser, Esq. JWA@silverlawgroup.com
SOURCE: Leonardo Corporation
David Hambling has written an article which summarizes where we are at today in the world of LENR and the looming court battle between Andrea Rossi and Industrial Heat LLC. This can be found in Popular Mechanics titled “In Cold Fusion 2.0, Who’s Scamming Whom?”
RESEARCH TRIANGLE, N.C., April 7, 2016 /PRNewswire/ — 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. Leonardo Corporation and Mr. Rossi also have repeatedly breached their agreements. At the conclusion of these proceedings we are confident that the claims of Mr. Rossi and Leonardo Corporation will be rejected.
Industrial Heat continues to be focused on a scientifically rigorous approach that includes thorough, robust and accurate testing of promising LENR technologies. Our goal remains to deliver clean, safe and affordable energy.
Update – Rossi Responds:
April 7, 2016 at 7:27 PM
I have to comment the press release of IH.
They made the Lugano reactor, 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, 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 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, was not a good test, 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 J.T. Vaughn.
MIAMI, April 6, 2016 /PRNewswire/ — Leonardo Corporation announced today that on March 29, 2016, Leonardo Corporation received independent third party validation of the overwhelmingly positive results of a nearly yearlong test of Leonardo’s 1MW Energy Catalyzer (“E-Cat”). According to the inventor, Andrea Rossi, the E-Cat generates a low energy nuclear reaction (“LENR”) which produces excess heat energy at a cost substantially below more traditional energy sources. According to the independent third party report, over the 352 day test period, the E-Cat consistently generated energy at a rate in excess of six (6) times the amount of energy consumed by the plant, often generating energy exceeding fifty (50) times the amount of energy consumed during the same period. According to Andrea Rossi, Leonardo Corporation considers the results of the third party test to be “an overwhelming success” and that “the world is one step closer to the realization of a commercially available new, clean and efficient energy source.”
The independent third party validation test was performed by Dr. Ing. Fabio Penon, a Ph.D. in Nuclear Engineering, at the behest of Leonardo Corporation and one of its licensees, Industrial Heat, LLC. as both desired independent third party verification of the sustainability of the energy production of the E-Cat over a prolonged period. “The results of Dr. Penon’s test was consistent with the measurements taken by the representatives of Leonardo Corporation and Industrial Heat respectively during the course of the test” said inventor Andrea Rossi.
“Leonardo Corporation is working diligently with its licensees, corporate partners and material suppliers to implement a production and distribution plan consistent with the expected demand for the E-Cat units when they are made commercially available” stated Rossi.
Notwithstanding, Licensee Industrial Heat continued involvement in the development and manufacturing of the E-Cat is uncertain at this time. As stated in a lawsuit filed by The Silver Law Group, P.A. on behalf of Leonardo Corporation on April 5, 2016, Leonardo Corporation believes that Industrial Heat breached the terms of its license agreement and misappropriated Leonardo Corporation’s intellectual property relating to the E-Cat. Additional information is available regarding the E-Cat at www.ecat.com. The lawsuit can be viewed at www.pacer.gov, Case No. 16-CV-21199-JLK, U.S. District Court, Southern District of Florida. Leonardo Corporation does not anticipate that there will be any delay in the commercial release of the E-Cat technology as a result of the lawsuit.
Contact: Leonardo’s attorney John Annesser, Esq. JWA@silverlawgroup.com, 305-664-3955
SOURCE The Silver Law Group, P.A.
As we ponder the fate of LENR and the seemingly imminent moment when someone reaches a breakthrough that makes mainstream news, Huw Price, Bertrand Russell Professor of Philosophy at the Trinity College at the University of Cambridge has written an article entitled “Is The Cold Fusion Egg About to Hatch”? It is a good summary of where we are at and what might happen next.
The relationship between the investors at Industrial Heat LLC and Andrea Rossi’s Leonardo Corporation at times seem both transparent and murky. There is apparent evidence of several Industrial Heat entities being formed in the U.S., England and China. There is also evidence of Leonardo Corporation mobilizing in certain areas, most notably prototype work being done on second generation E-Cats called an E-CatX and “Quark.” The following statement really only re-emphasizes there are more rumors than facts available to us. Statement of Industrial Heat Regarding LENR Industry Developments March 10, 2016 Industrial Heat’s objective is to make clean, safe and affordable energy available everywhere, and in doing this we want to build a company that demonstrates respect for all. LENR is a key focus of Industrial Heat and we believe multiple technologies in this sector warrant further investigation and development. Industrial Heat has licensed, acquired or invested in several LENR technologies from around the world. We have developed a group of LENR thought leaders, and we have built a world-class engineering team. We are pleased with the technologies we have assembled and with the group of scientists and engineers working on them. Presently, the Industrial Heat team is in the midst of assessing and prioritizing the technologies in our portfolio. Our operating philosophy is to foster scientific and engineering rigor in the development of LENR. We will thoroughly assess data derived from sound experiments which we design, control and monitor. Embracing failure as well as success is important, because we learn from both. Unfortunately, there is a long and continuing pattern of premature proclamations in the LENR sector. Because of this, we encourage open-minded skepticism. We believe society suffers when technological advances and innovative experimentation are stifled; likewise, society and the industry suffer when results are promoted and claims are made without rigorous verification and precise measurement. We value credibility through sound LENR research. That’s why any claims made about technologies in our portfolio should only be relied upon if affirmed by Industrial Heat and backed by reputable third parties who have verified our results in repeated experiments. Our portfolio of work has never been stronger and we remain excited about the potential we see. This optimism is grounded in more than just hope, yet a great deal of work remains. The energy challenges of today must be met with viable, clean, safe and affordable solutions.
A prominent North Carolina investor is backing a new kind of fusion that operates at much lower temperatures than thought possible, which would make it easier to commercialize. So far the early results show promise.
Tom Darden is with Cherokee Investment Fund. Under the trade name, Industrial Heat LLC, his group has invested over $10 million in Andrea Rossi’s E-Cat technology which makes use of LENR. Read the full article here.