Jury Sides with Martek in Patent Case against Lonza

COLUMBIA, Md.—A jury in U.S. District Court, Wilmington, Del., decided for Martek Biosciences (NASDAQ:MATK) in its patent infringement case against Lonza Ltd. and its related companies Nutrinova Inc. and Nutrinova Nutrition Specialties & Food Ingredients GmbH.The jury found Lonza et al.(www.lonza.com) infringed U.S.patents (Nos.5,340,594;6,410,281; and 6,451,567), held by Martek and related to the production of docosahexaenoic acid (DHA). According to Lonza, Martek had dropped all its prior patent claims, except for the three included in this new verdict. The jury further found Lonza acted willfully in infringing those patents, which do not include Martek’s infant formula patents.

“We are gratified the jury found that Martek’s patents pertaining to omega-3 DHA products and processes are valid and enforceable and that Lonza’s actions infringe on those patents,” said Steve Dubin, chief executive officer (CEO) of Martek (www.martek.com). “The verdict further demonstrates both the company’s resolve to vigorously defend our intellectual property portfolio and the strength of Martek’s patent portfolio in the U.S. marketplace.”

Martek intends to ask the court for a permanent injunction to prohibit Lonza’s infringement on those patents.However, the decision will likely be appealed by Lonza to the U.S Court of Appeals.

“It is important to remove patents that have been procured through violation of the patent statutes, and thus we are disappointed with the jury’s findings,” said Peter Lagger, global vice president of the Lonza Food & Feed business unit, in a press release. “We continue to believe that Martek’s patents are invalid and have in no event been infringed by Lonza as a matter of law, particularly given the concessions at trial and, hence, we will appeal the jury trial verdict.”

This case was originally filed in 2003 against Nutrinova, and was inherited by Lonza after it bought the DHA business from Nutrinova in 2005; but, due to the infancy of the acquired DHA business, this jury verdict is not expected to have a negative impact on Lonza’s sales and profitability. Lagger further noted Lonza has recently been concentrating on new development efforts not impacted by Martek’s patents.