HeiQ Takes Alleged Multi-Million Dollar License Agreement Breaches By ICP Industrial To North Carolina Court
Image By Courtesy of HeiQ
HeiQ Materials AG’s breach of exclusive agreement complaint against ICP Industrial Inc in the US is gathering pace, as new estimates put the claim at over $100 million.
HeiQ is a London and Zurich-based materials and textile technology company.
In March 2021, HeiQ signed an exclusive license & chemicals supply agreement with ICP Industrial Inc, a division of ICP Group.
The five-year contract, which was subject to renewal after the first two years, gave ICP exclusive worldwide rights to apply HeiQ Viroblock to coatings for printing processes such as commercial print, food, beverage and pharma packaging.
At the time, HeiQ said it expected the contract to deliver $30 million of royalty revenue.
HeiQ Plc (LSE: HEIQ), an IP creator and established global brand in materials and textile innovation which operates in high-growth markets, announced last October that HeiQ Materials AG, Switzerland, a 100% subsidiary of HeiQ Plc has filed a complaint in the United States District Court for the Western District Of North Carolina, Charlotte Division, against ICP Industrial Inc, a division of ICP Group ("ICP"), for breaching its Exclusive Agreement terms.
The Company Intends To Enforce The Parties' Exclusive Agreement In Full.
As previously announced on 19 March 2021, ICP signed an Exclusive Licence and Chemicals Supply Agreement ("the Exclusive Agreement") to apply HeiQ Viroblock for printing processes such as commercial print, food, beverage and pharma packaging, in return for royalty payments to HeiQ.
ICP has breached the Exclusive Agreement by failing to pay royalties or minimum exclusivity fee payments and failing to provide timely and accurate royalty reports.
Contractual minimum exclusivity fees for the contract term amount to USD $30 million in total.
HeiQ seeks an order that would require the defendant to comply with its long-standing contractual obligations to HeiQ and given the exclusive terms is asking for treble damages under North Carolina law.
HEIQ Co-Founder And CEO Carlo Centonze Said:
"It is unfortunate that we must take this action against ICP to enforce our agreement, but we cannot allow ICP to use our valuable intellectual property without honouring the terms to which they have agreed. We intend to enforce it in full. Despite this claim, our Hygiene Technology's Coatings & Polymers business unit continues to progress well. HeiQ recently entered into an agreement with Touchguard International Ltd to acquire a patent portfolio, which covers the use of antimicrobial overprint varnishes, for a consideration of £1 million, providing HeiQ and its licensees with exclusive rights to use antimicrobials in overprint varnishes in the UK and Europe. This enables HeiQ to become the leading player in the European antimicrobial print market and provides substantial growth opportunities."
About HeiQ
HeiQ is focused on improving the lives of billions of people world-wide by innovating the materials people use every day.
HeiQ has strong IP which is at the forefront of global technology in the $10 billion antimicrobial fabrics market, $24 billion textile chemicals market, the $50 billion probiotics market and the $150 billion man-made fibers market.
It has also moved into the medical device, healthcare and hygiene coatings markets, to help make hospitals and healthcare environments more hygienic.
HeiQ aims to deliver growth for its shareholders through a combination of increased sales of its core products and by entering additional lucrative markets through disruptive innovations and M&A.
HeiQ has created some of the most effective, durable and high-performance technologies in the market today, which cool, warm, dry, repel, purify, and destroy viruses.
Since 2005, HeiQ has developed over 200 technologies in partnership with 300 major brands and it has a significant R&D pipeline containing over 50 projects.
The Company has won multiple awards and gained a strong reputation for the ESG & sustainable downstream effect of its innovations.
HeiQ is the only company to have won the Swiss Technology award twice. It has also won the Swiss Environmental award with an innovation that saves energy and water consumption during the textile manufacturing process.
