SINGAPORE (THE BUSINESS TIMES) – A Catalist-listed medtech firm that made strong gains this year as investors hunt for tech exposure, has now claimed that that a Japanese group breached intellectual property-related (IP) agreements.
Biolidics has issued a letter of demand to Japan-based healthcare group Sysmex Corporation, saying that Sysmex breached IP obligations under a collaboration agreement struck in 2016 for the joint development of biochips.
Biolidics is claiming that Sysmex has filed certain patent applications in the US, China, Japan and Europe which contain IP, technical information and/or know-how that belongs to Biolidics and/or qualifies as newly-developed or jointly-developed IP under the development agreement.
Under the agreement, both parties agreed that any newly-developed or jointly-developed IP would be jointly owned.
They would also need to discuss which countries the patent applications will be made, as well as the percentage of each party’s respective ownership share before the applications are filed.
Such patent applications would then be jointly filed by both parties after an agreement is made.
Biolidics asserted that Sysmex had an obligation under the development agreement to reach a joint agreement prior to filing the applications.
“The company also asserts that in filing the patent applications without reaching a joint agreement with the company, Sysmex had breached its obligations of confidence and to act in good faith owed to the company under the development agreement,” Biolidics said in a bourse filing on Friday night (Oct 16).
Biolidics has demanded that Sysmex provide an undertaking that it will refrain from using or disclosing Biolidics’ confidential information contained in, among others, IP, technical information and/or know-how.
Sysmex, in its undertaking, will also need to rectify the pending patent applications to reflect Biolidics as sole proprietor or joint proprietor, as the case may be; and enter into a commercial licensing agreement with Bioliodics for any and all relevant IP owned by Biolidics which Sysmex requires for its commercial endeavours.
Biolidics demanded that Sysmex affirms under oath, a full and complete listing of any and all patent applications filed in respect of or in connection with the development agreement.
Biolidics also demanded compensation from Sysmex for legal or other reasonable administrative costs incurred in this matter.
The company said it is working with its legal advisers to monitor the progress of this matter and will update its shareholders if there are any material developments. In the meantime, the group’s operations are unaffected by this matter.
If Sysmex fails to comply with the letter of demand, Biolidics said it intends to take all necessary steps to protect its interests, including starting dispute resolution proceedings in accordance with the development agreement.
The matter may have an impact on the group’s financial performance for the financial year ending Dec 31, 2020, depending on the timing and outcome of Sysmex’s response to the letter of demand. The group said it is unable to quantify the impact of the matter on its fiscal 2020 financial performance.
Shares of Biolidics were up half a cent at $0.33 as at 10.14am on Monday. At its height this year, the stock more than doubled since it started the year trading at $0.225. But the shares have lost some ground since July.