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What Do HP Inc (NYSE:HPQ) and Life Clips Inc (OTCMKTS:LCLP), Have In Common?

When someone utters the words Life Clips Inc (OTCMKTS:LCLP) what comes to mind? For micro cap traders this summer and into the early fall, it has been an innovative product driven market with two novel brands. These brands are Mobeego (a one-time use charger for electronic devices) and SoloVu 4K Action Camera.

So why mention this? Well, it’s a two-part question because when someone utters the HP Inc (NYSE:HPQ), eyebrows raise and usually people think of a wealth of electronics from a global industry leader. But what do these two companies even have in common? The answer can be found in an 8-K filed on September 22, 2016.

That’s correct. On this day Life Clips Inc (OTCMKTS:LCLP) entered into a Trademark License Agreement with HP, Inc. that grants Life Clips a sublicense to use, reproduce and display the HP trademarks in various territories on HP Branded Products, which are products that HP Inc (NYSE:HPQ) has approved for sale and distribution. The territories included are the United States, Canada, Australia, New Zealand, Israel, 26 countries in Europe, five countries in Africa, and 38 countries in Latin America.

And what’s more is that the initial term goes until at least 2019. Now for this deal this could basically mean that certain products of Life Clips can begin sporting the HP brand via this sub license and it also makes for a nice deal for HP. They get $125,000 on October 1st, another $125,000 on April 1 of next year (2017), 4% royalties on “Hardware,” 10% royalties on “Accessories,” and having minimum amounts of royalty dollar amounts benchmarked through the term of the agreement & beyond.

A little brisk reading and you’ll see this in the actual contract:

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If the image isn’t clear enough, it reads: “Hardware” means digital still cameras that record and store photographic images and video in digital form; portable camcorders, action cameras, 360 degrees action cameras and front/rear view cameras for use in cars. Direct wireless connection to a smartphone or tablet in a peer-to-peer environment is permitted for these devices.

Unfortunately we won’t be seeing any HP Branded single use chargers through this agreement as it states: “Accessories” means accessory products that are designed to be used with or ancillary to the “Hardware”. “Accessories” shall be advertised, promoted and/or marketed as being for use with the Hardware. The Mobeego products owned by Licensee shall not be defined as Accessories or accessory products.

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Needless to say this agreement now means that we could start seeing Life Clips products with HP branding in every major location that Life Clips has been approved to distribute. For anyone who’s dabbled in the OTC realm before, it’s rare at least in my opinion that we see the caliber of company like HP entertaining, let alone agreeing to a deal such as this. But it’s right in front of everyone right here and now.

Popularity Of Action Cameras

Action camera market size is anticipated to grow at a CAGR of over 22% from 2016 to 2023. Personal action camera market share equated to roughly 75% of the total revenue in 2015. GoPro accounted for over 45% of the overall action cam industry in 2015. Growing popularity among various age groups coupled with advanced product features offered by vendors is likely to provide massive growth potential to the action camera market over the next seven years.

And on top of this, a study released this month (September 2016) suggests that shipments for wearable cameras (including action cameras, body cameras, etc.) will grow from 7.4 million last year to 24 million by 2021. Tractica expects the market to be worth roughly $3.4 billion by the end of that period.

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