Krill oil suppliers Aker BioMarine and Neptune Technologies & Bioressources have agreed to exchange license rights and payments to end their long-running intellectual property battle.
The two companies are no strangers to disputes and agreements over krill patents, but the latest truce reportedly ends all outstanding litigation between the two krill giants.
Only a few terms of the agreement were released, but among the highlights, Aker will continue to have access to Neptune’s krill composition patents and Neptune will gain rights to Aker’s select krill oil-related patent portfolio. Both companies will make royalty payments to each other over a period of 15 months, US$10 million from Aker and $4 million from Neptune.
“We are pleased that through this agreement the integrity of each company’s Intellectual Property (IP) is recognized and puts an end to all legal challenges, said Jim Hamilton, president & CEO of Neptune, in a joint press release. “Our collective focus can now be even more directed to the growth and development of the omega-3 krill oil market."
The companies stated the new agreement should bring lasting peace in the krill patent arena and should return the focus to growth and business value creation in the marine omega-3 phospholipids market.
“Recognition and protection of intellectual property is critical to continue to invest in innovation and R&D, which is key to driving growth in the krill oil industry," said Matts Johansen, CEO of Aker BioMarine, in the press release. “This joint patent agreement signifies the importance of respecting IP, further strengthening our position as the leading innovators in the global krill oil market."