June 1, 2006

Global Bio-Chem may face patent infringements lawsuits in US

Global Bio-Chem, a major lysine producer dismissed allegations that it violated patent rights as it faces lawsuits in the US and Europe.

The United States International Trade Commission (ITC) last week announced that it would look into allegations that China's Global Bio-Chem Technology Group infringed patent rights in the production of its L-lysine feed products.

Ajinomoto Heartland LLC, who filed the complaint, said the export and sale of lysine by China's Global Bio-Chem Technology Group (GBT) to the US violate two patent agreements.

Global Bio-Chem dismissed the allegations as "completely unfounded".

In return, the company and its affiliate companies have filed a lawsuit in China against Ajinomoto for the 'unauthorised seizure of proprietary and confidential information on Global Bio-Chem Companies' L-lysine production technologies during Ajinomoto's recent visits to its production facilities.

Of greater impact would be the lawsuit in Europe, where Global Bio-Chem's sales are higher. Germany's Helm AG, a distributor for Global Bio-Chem in parts of Europe has received a writ of summons from  Ajinomoto/Eurolysine, claiming patent infringement of lysine products.

Helm AG said it is confident that it would be proven that Global Bio-Chem and Helm AG are not guilty of those allegations and sales would not be affected.