Aquasearch, Cyanotech Settle Patent Suit

Aquasearch, Cyanotech Settle Patent Suit

KAILUA-KONA, Hawaii--Cyanotech Corp. (www.cyanotech.com) and Aquasearch Inc. (www.aquasearch.com) announced March 6 that they have settled pending intellectual property litigation. (For background on the suits, see www.naturalproductsinsider.com/articles/111news7.html.) Under terms of the agreement neither company admitted liability.

According to a joint release, Cyanotech agreed to an injunction to prevent it from using any system for microalgal production that infringes Aquasearch's patent No. 5,541,056. In return, Aquasearch agreed that Cyanotech's process for producing microalgae, known as the PhytoDome, does not infringe the '056 patent. Cyanotech will pay undisclosed royalties to Aquasearch, and both parties will dismiss all claims with prejudice. The court will enter an order that the '056 patent is valid and enforceable.

Gerry Cysewski, president of Cyanotech, said the company was satisfied with the agreement. "This settlement allows us to put this matter behind us and concentrate on developing the market potential for our BioAstin astaxanthin product," he said.