OVER UNITY MOTOR
The Techno Maestro's Amazing Machine
Kohei Minato and the
Japan Magnetic Fan Company - Continued

However, the Osaka banker stands up after the lecture and announces that before he goes, he will commit 100 million to the investment pool. Minato turns to us and smiles. We brought him good luck, and this was his third investor in as many weeks to confirm an interest.
Bringing the tech to the table.
With the audience gone, we ask Minato what he plans to do to commercialize the technology. His game plan is simple and clear, he says. He wants to retain control, and he wants to commercialize the technology in Japan first -- where he feels he can ensure that things get done right. Why doesn't he go directly to the US or China? His experiences in both countries, he suggests, have been less than successful. "The first stage is critical in terms of creating good products and refining the technology. I don't want to be busy with legal challenges and IP theft while doing that."

Still, the export and licensing of the technology are on his agenda, and Minato is talking to a variety of potential partners in other countries.

Whereas another inventor might be tempted to out source everything to a larger corporation, part of what drives Minato is his vision of social justice and responsibility. The 40,000 motors for the convenience store chain are being produced by a group of small manufacturers in Ohta-ku and Bunkyo-ku, in the inner north of Tokyo -- which is becoming a regional rust belt. Minato is seized with the vision of reinvigorating these small workshops that until the 80s were the bedrock of Japan's manufacturing and economic miracle. Their level of expertise will ensure that the quality of the motors will be as good as those from any major company.

International prep.
Despite his plan to do things domestically first, Minato is well prepared for the international markets. He is armed with both six years of living and doing business in Los Angeles in the early 90s -- and with patent protection for over 48 countries. His is hardly a provincial perspective. His US experience came after playing the piano for a living for 15 years. He began tinkering with his invention in the mid-70s. The idea for his magnetic motor design came from a burst of inspiration while playing the piano.

But Minato decided to drop everything in 1990 to help his daughter Hiroko, who at the age of 20 decided that she wanted to be a rhythm and blues star in the US. Minato is a strong believer in family: If Hiroko was going to find fame and fortune in the US, Dad had better be there to help manage her. He succeeded in helping Hiroko to achieve a UK dance chart number one hit in 1995

In 1996 Minato returned to Japan and his magnetic motor project. The following year he displayed his prototypes to national power companies, government officials and others at a five-day conference in Mexico City. Interest was palpable, and Minato realized that his invention might meet a global need for energy-saving devices.

During the late 90s, Minato continued to refine his prototypes. He also stayed in constant contact with his lawyer, registering patents in major countries around the world. Through his experiences in the US he realized that legal protection was critical, even if it meant delaying release of the technology by a couple of years. Ironically, by the time he'd won patents in 47 countries, the Japanese patent office turned him down on the grounds that "[the invention] couldn't possibly work" and that somehow he was fabricating the claims. But a few months later they were forced to recant their decision after the US patent office recognized his invention and gave him the first of two patents. As Minato notes: "How typical of Japan's small-minded bureaucrats that they needed the leadership of the US to accept that my invention was genuine."

By 2001, the Minatos had refined their motors and met enough potential investors to enter into a major international relationship, initially with a Saudi company, to be followed thereafter by companies in the US and elsewhere.

However, fate dealt the investors and Minato's business a serious blow when the World Trade Center was attacked in New York. The Saudis retreated, and Minato's plans fell back to square one.
Now Minato is once again ready to move. With the first order in the works and more orders pending successful prototypes, he has decided that investors don't have to be primary partners. He is actively accepting inquiries from corporate investors who can bring strategic advantages and corporate credibility with them. His company, Japan Magnetic Fan, will make a series of investment tie-up announcements in the first and second quarters of 2004.

Implications
Minato's motors consume just 20 percent or less of the power of conventional motors with the same torque and horse power. They run cool to the touch and produce almost no acoustic or electrical noise. They are significantly safer and cheaper (in terms of power consumed), and they are sounder environmentally.

The implications are enormous. In the US alone, almost 55 percent of the nation's electricity is consumed by electric motors. While most factory operators buy the cheapest motors possible, they are steadily being educated by bodies like NEMA (National Electrical Manufacturers Association) that the costs of running a motor over a typical 20-year life span comprise a purchase price of just 3 percent of the total, and electricity costs of 97 percent. It is not unusual for a $2,000 motor to consume $80,000 of electricity (at a price of .06 cents per kilowatt hour).

Since 1992, when efficiency legislation was put into place at the US federal level, motor efficiency has been a high priority -- and motors saving 20 percent or so on electrical bills are considered highly efficient.

Minato is about to introduce a motor which saves 80 percent, putting it into an entirely new class: The $80,000 running cost will drop to just $16,000. This is a significant savings when multiplied by the millions of motors used throughout the USA.
THE DEVICES
Minato's invention and its ability to use remarkably less power and run without heat or noise make it perfect for home appliances, personal computers, cell phones (a miniature generator is in the works) and other consumer products. --------------------- Continued on page 10