Novozymes A/S (NVZMF.PK), based in Denmark, was awarded double damages, attorneys’ fees and costs for patent infringement.
A federal court in Delaware ordered Danisco to pay damages of US $4,088,584 plus prejudgment interest for infringing Novozymes’ U.S. Patent No. 6,867,031 covering Spezyme® Ethyl, an enzyme used to manufacture bioethanol. The federal court also found that Danisco wilfully infringed Novozymes’ patent and that the case was exceptional. As a result, the court doubled the damages and also awarded Novozymes attorneys’ fees and costs.
The court also issued a permanent injunction against Danisco preventing future violations of Novozymes’ patent.
The case began in March 2005 when Novozymes brought a patent infringement litigation against Genencor International Inc., which was subsequently acquired by Danisco A/S. The litigation was based on the sales of Genencor’s product Spezyme® Ethyl to the American market for bioethanol and other industries.
In August 2006, a Federal District Court in Delaware, USA held that Spezyme® Ethyl infringed Novozymes’ patent. At that time, Danisco chose to withdraw the product from the market.
The damage payment of DKK 45 – 50 million will have a positive effect on Novozymes’ EBIT and net result for 2007, provided the decision of the court is not appealed. In addition, the awarded prejudgment interest, attorney’s fees and costs, which have not yet been settled by the court, are also expected to affect results positively.
Both Novozymes and Danisco now have 30 days to appeal against the ruling. Novozymes is a world leader in biological-based enzymes, producing over 700 enzyme and microorganism products. Its products are sold in 130 countries and are used by 40 different industries for such uses as water, energy, raw materials and waste.
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