NOTICE DATE: April 11, 2025

NOTICE TYPE: M-A041125-01 Legal

SHORT DESCRIPTION: License of Lancium Patents for Controllable Load Resources

INTENDED AUDIENCE: Resource Entities with Load Resources and Controllable Resources

DAYS AFFECTED: April 10, 2025

LONG DESCRIPTION: On April 10, 2025, ERCOT entered into an agreement with Lancium LLC to license certain of Lancium's patents at no cost.  The executed license agreement is attached here and is also posted to the Load Resource Participation in the ERCOT Markets page of the ERCOT website.  Patents included within the license are designated in § 1.2 of the agreement and include all of Lancium's U.S. patents, whether existing or that may issue from subsequent Lancium patent applications, that are potentially applicable to Load Resources' registration as Controllable Load Resources (CLRs) and their provision of Ancillary Services in the ERCOT Region (see Schedule A to the license agreement for the list of licensed patents).

Terms of the license include:

• § 1.1: The license is non-exclusive, perpetual, sublicensable, irrevocable, fully-paid, royalty-free, non-transferrable, and applies only to the licensed patents and only in the licensed territory, which is the ERCOT Region.
• § 1.1: The license allows ERCOT and any sublicensees to: (i) make, have made, use, sell, offer for sale, import, or otherwise distribute any products (including software) and services that would otherwise infringe the licensed patents, and (ii) practice any methods, processes, and procedures that would otherwise infringe the licensed patents.
• § 2: Lancium releases, acquits, and discharges ERCOT and its sublicensees from any and all claims, demands, causes of action, damages, liabilities, or suits that Lancium has or may have in the future of any alleged infringement of the licensed patents in the licensed territory to the extent such alleged infringement results from or is connected to the activities addressed by § 1.1.
• § 9.1: The term of the license extends through the expiration of the last licensed patent.

As the licensee under the license agreement, ERCOT hereby designates as sublicensees all entities that have been, are, or will register with ERCOT as CLRs.  No further action beyond registration with ERCOT as a CLR is required in order for any entity to avail itself of the license and thereby conduct the activities covered by the license agreement without potentially infringing such patents.

ADDITIONAL INFORMATION: For additional information on the license, refer to the explanation included in the "Controllable Load Resource Patent Sublicense" subsection on the Load Resource Participation in the ERCOT Markets page of the ERCOT website and to ERCOT's presentation under agenda item 11 to the ERCOT Board of Directors at the April 7-8, 2025 meeting.

CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at ClientServices@ercot.com.

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