BarcoNet announced it is starting a development program for IP-based products to distribute on-demand entertainment video over an IP backbone. As part of this program, BarcoNet has entered into a Product Development Agreement with Path 1 Network Technologies to develop an IP gateway product.
BarcoNet and Path 1 will jointly develop an IP gateway for deployment in a new gigabit Ethernet platform.
Under the agreement, BarcoNet will pay a non-recurring engineering fee of $1.7 million. In return, Path 1 will develop, test and deliver beta units to BarcoNet during the next six months. BarcoNet will manufacture and sell the products. The companies have also agreed to a royalty and resell agreement, including the option for Path 1 to purchase and resell the BarcoNet product under the Path 1 label. BarcoNet expects the first products to become available during the fourth quarter of this year.