Cold-Climate Heat Pump Temporarily Chilled

Nyle Special Products, LLC, has suspended production of the Cold-Climate Heat Pump™ (CCHP) amid skirmishing between the manufacturer, its former general manager, and the developer of the technology. Duane Hallowell resigned as general manager of Nyle in February to form Hallowell International, LLC, which acquired the manufacturing rights to a group of patents held by engineer David Shaw for technology that he developed. Those patents were initially licensed to Nyle for use in the CCHP, but that agreement was terminated earlier this year by Shaw, who had a per-unit-produced compensation contract.

Nyle, which shut down CCHP production shortly after it began in order to perform additional R&D to increase efficiency and reliability, has sold approximately 250 units. The company plans to recommence production before the end of 2005, claiming that the technology it’s actually using is defined under an earlier patent held by another individual. Nyle owns the Cold-Climate Heat Pump name. Meanwhile, Hallowell received a $200,000 loan-and-lease package last month from the Maine Department of Economic and Community Development to help establish the new venture, but product is not expected to be available from the startup sooner than the first quarter of 2007.