MSM Investments, Carolwood Clash Over MSM 28856

MSM Investments, Carolwood Clash Over MSM

GREENVILLE, Pa., and PORTLAND, Ore.--MSMInvestments Co. (MIC), based in Portland, and Carolwood Corp., based inGreenville, have renewed their legal dispute over the sale of MSM in the UnitedStates. The companies previously reached a licensing agreement settlinglitigation in late 1999.

Both companies posted statements that MIC issued noticeterminating Carolwood's license to sell MSM under the U.S. patents held byRobert Herschler, founder of MIC.

According to MIC, the license was terminated on May 15,"based on Carolwood's failure to pay royalties and its breach of asettlement agreement reached in December 1999, which established thelicense." MIC added that there is pending litigation, filed in April 2001in the 9th Circuit Court of Oregon, stemming from the settlement agreement. Thecompany added there are only two companies now licensed under the Herschlerpatents--Cardinal Nutrition in Vancouver, Wash., and Chemiplus in Japan. Callsto MIC's legal counsel were not returned.

Carolwood's release said, "regardless of this notice,Carolwood announced that it intends to continue manufacturing and selling MSM."The company added that the human use patents at issue in the earlier lawsuit"have either expired or have been invalidated" and that a motion toinvalidate two animal use patents, which was dismissed with the settlementagreement, "would have been successful." When contacted for furtherclarification on the issue, a Carolwood representative said the company had nofurther comment. Carolwood supplies Lignisul MSM.