Who Licenses What Formulas?
Additive companies, such as Lubrizol, Ethyl,, Infinium and Oronite, develop licensed formulas that they offer to oil companies to re-license. It is inexpensive to re-license one of these formulas, and the majority of oil companies choose to do this to avoid the costs associated with testing. This, however, tends to commoditize the market. The same chemistry is being sold under many brand names. Most of the major oil companies do have their own proprietary formulas developed, tested and licensed. All of AMSOIL INC.’s lubricant formulas are unique and proprietary. Flexibility In Manufacturing An API Licensed Formula API licensing was originally developed for mineral based oils, and it affords these oils more flexibility than synthetic oils. Mineral oils comprised of Group I and Group II petroleum basestocks may use a simple program called basestock interchange for added flexibility in manufacturing and purchasing. Interchange means that by completing the proper paperwork and running a fe