Business Leaders to Attend Summit at Historic Hotel in New Hampshire and Develop Industry Policies to Weather the Looming Intellectual Property Crisis

(DEERFIELD, NH – FOR IMMEDIATE RELEASE – Grenitech Inc.) According to Donald Kubelka, president of Grenitech Inc., recent reports indicate that Federal Reserve policy has not really affected the economy as the Board had hoped. He said the situation stems from industry’s increasing use of intellectual property, or “IP,” as money, something that existing economic guidance systems cannot accommodate for much longer without undergoing changes that could become convulsive.

Kubelka urged CEOs across the United States to attend the “Balsams 100 Intellectual Property Nebula Conference” on April 28-30, 2006, at The BALSAMS Grand Resort Hotel in Dixville Notch, NH, to develop policies that will mitigate the looming intellectual property crisis and position American industry to harness the power of IP.

“Typically,” said Kubelka, “higher interest rates would limit the amount of cash available to investors and slow the economy. But the market’s increasing use of intellectual property and other gaseous assets as substitutes for cash in their buying and selling threatens to render futile the Fed’s efforts to put a premium on traditional capital.”

The Federal Reserve has again raised interest rates. But a recent story in Allentown, Penn.’s The Morning Call indicated that small banks nevertheless saw their profits slip in 2005 and early 2006.

The story reported that the typical relationship between long-term and short-term rates has inversed and suggested that the Fed’s impact on long-term rates has decreased in recent years. The Fed’s ability, previously reliable, to affect long-term rates through adjustment of the federal funds rate has declined, according to the report. Quoted experts said that they expected the inverse disparity between long-term and short-term rates to correct itself by year’s end.

“You have to wonder what the experts really know,” said Kubelka. “Few economists expected banks to lose money on account of twisted interest rate relationships—an unprecedented inverse of the norm. Our economy has been defying tried-and-true forecasting models for a while. Why would the experts be so audacious as to predict the future, still, with their traditional methodologies? If they don’t know why it ‘broke,’ how can they realistically hope to fix it?”

Despite a Federal Reserve that continues to raise interest rates in the interest of slowing the economy’s growth, stock investors enjoyed solid returns during the first quarter of 2006. An April 2 report from The Associated Press suggested that many investors expected the economy to slow down during the first quarter, yet it did not.

“In fact,” said Kubelka, “when it raises rates, the Fed is actually precipitating the use of intellectual property, or IP, as a primary means to buy and sell. IP and other gaseous assets—assets that are neither liquid nor fixed—come with a different premium and start to look very attractive compared to other forms of money.”

“Any time a company can use its stock or other IP to purchase something,” Kubelka explained, “it saves cash and actually increases the money supply available to all of us. By cross-licensing their patents and other IP, companies are again using their IP as money and thus increasing the overall money supply. The only real question then becomes, who will be faster – the Feds in shrinking the supply, or the companies and individuals who are increasing it?”

On April 3, The Associated Press reported General Motors’ decision to shore up cash by selling a majority share of its finance arm, GMAC. An April 6 article in The Wall Street Journal later detailed the many provisions that might jeopardize the deal’s longevity. But Kubelka said the favorable premiums of IP, despite their risks, can offer a roadmap out of financial difficulty to large companies experiencing poor profitability.

“GMAC is one of GM’s gaseous assets,” said Kubelka. “Bereft of traditional liquidity, the automaker tapped an amorphous source of value to generate liquidity in the absence of traditional cash—and, with luck, buy the time needed to show profits. Essentially GM just traded one form of currency, some of its interest in GMAC, for another, cash.”

“This kind of creative use of IP as a form of cash throws into disarray longstanding systems for measuring liquidity,” Kubelka added. “Why should GM stop with just GMAC? What is to prevent GM from tapping some of its other gaseous assets in a quest to reinvent itself?”

“In the coming years,” Kubelka concluded, “we will see industry increasingly using gaseous assets such as IP in place of traditional currency. Reliance on internally created currency such as patent or copyright licenses to purchase goods and services will become commonplace. This will be especially true when companies begin to use many of the products we at Grenitech are developing.”

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Donald Kubelka is president of Grenitech Inc., a business development company that specializes in semi-automating business processes to minimize operating costs and increase profits. CEOs can attend the Grenitech-sponsored “Balsams 100 Intellectual Property Nebula Conference” on April 28-30, 2006, at The BALSAMS Grand Resort Hotel in Dixville Notch, NH. There, they will join their peers in setting policy for American businesses that want to harness the power of intellectual property before intellectual property becomes a lost asset.

For more information on this agenda-setting conference, visit www.B100-IPn.com. You may also give Kubelka a call at 203-550-6650 or send an e-mail to don@grenitech.com.

The media may also contact Brent Skinner, president and CEO of STETrevisions (www.STETrevisions.biz), by e-mailing BrentSkinner@STETrevisions.biz or calling 617-875-4859.