Internet of Things developer Buddy Technologies (ASX: BUD) will supply its “Powered by LIFX” platform to China’s Eastfield Lighting (Hong Kong) Co. Limited under a non-exclusive, 10-year licencing agreement announced today.
The multi-product agreement is the largest “Powered by LIFX” deal to date and will allow for the building of LIFX-compatible smart lights for an initial 500,000 smart licences with no cap.
It will be initiated by a non-refundable payment of $368,000 and provides for a licence fee per piece of product manufactured per quarter.
Eastfield’s customers will have the option to have their products controlled by publicly-available LIFX mobile apps, or they may pay an additional fee to white-label the mobile apps with their own branding.
Alternatively, they can enter into separate agreements with Buddy’s Managed Services team to develop custom mobile apps or experiences built on their own “Powered by LIFX” lighting products.
Eastfield is a prominent manufacturer of lighting products in south-east China, building more than 10 million lights per year, including the LIFX brand of energy-efficient, WiFi-enabled smart lights.
Its has products in nearly 1 million homes around the world and is second only to lighting giant, Philips Hue.
Buddy chief executive officer David McLauchlan said the Eastfield agreement is a “big win” for the company’s licencing team and for Eastfield customers.
“Having spent a lot of time at Eastfield’s factory in Shenzhen and seen the vast scale at which they manufacture lighting products, [we’re] delighted to have the opportunity to work with them to make their products smarter and deliver even greater value to their customers globally,” he said.
“The fastest way for us to place our technologies into some of the most prominent brands and products in the world is to do so via partnerships with manufacturers such as Eastfield.”
He said licencing the platform into third party products provides a level of market reach and monetisation “that wouldn’t be achievable solely as LIFX”.
Buddy took on the LIFX brand name when it acquired Lifi Labs Inc in March.
LIFX pioneered the smart light in 2012 with the first Wi-Fi enabled, multi-coloured LED light controllable via a smart device.
This week, Buddy also announced the launch of a LIFX smart solution to enhance the television experience for regular viewers and gamers.
LIFX Z TV is an internet-connected backlighting (or bias lighting) strip which can be used via the LIFX mobile app and in conjunction with voice assistants such as Amazon Alexa, Google Nest Hub and Apple Siri.
It is designed to be installed behind a television and throws ambient lighting onto the wall, creating a darker contrast on screen and potentially relieving eye strain.
The product employs polychrome technology and can emit multiple colours at once, allowing users to animate their lighting experience.
At midday, shares in Buddy were trading 25% higher at $0.030.