For what it's worth, here are some more speculations on the Rossi-Defkalion break-up. It explains why the break-up was originated by Rossi, and why Defkalion failed to resolve the dispute.
I would suggest that Rossi realized that Defkalion's approach would not let him protect his industrial secret. This is a critical issue for profit-maximizer Rossi, in view of the lack of patent protection: according to Economics 101, one competitor is enough to erase much profit after a few years. Deploying one, let alone millions, of Hyperion units in unsecured places gives plenty of opportunity for competitors to acquire the device and reverse engineer its secret. Defkalion's attempts to add security within the Hyperions are not credible. It's much better for Rossi to have licencee(s) build a few large electricity-generating units in well-garded places, and sell the electricity to resellers. Having realized that Defkalion's approach was wrong, Rossi needed an excuse to break their agreement. It may be the failure of Defkalion to make a payment, although the evidence is not clear on that. I suspect that Defkalion had difficulty raising money. There was an early article in a Greek blog saying that they raised 200 M, while in fact, they only said that they would need 200 M to bring the technology to market. Their official statement did not say how much money was raised. Here are 2 reasons why they would have difficulty raising money : the lack of patent protection is a serious show-stopper for any technology investor, and the licence of the technology to Defkalion is limited (their right of first refusal for country extensions is only an option at this time: there is no garantee that they would secure the rights eventually). While this would explain much, I'm still totally puzzled as to why Rossi spends so much time answering questions on his blog. This is ballistically unreal for an industrialist creating a multi-billion dollar industry. Is he just satisfyting his ego ? He would have a better use of his time preparing a convincing demonstration of his device. Defkalion's communication was much more professional in this regard (except for their forum). PCA
