MSM Investments, Carolwood Clash Over MSM

GREENVILLE, Pa., and PORTLAND, Ore.--MSM Investments Co. (MIC), based in Portland, and Carolwood Corp., based in Greenville, have renewed their legal dispute over the sale of MSM in the United States. The companies reached a licensing agreement settling previous litigation in late 1999.

Both companies posted statements that MIC issued notice terminating Carolwood's license to sell MSM under the U.S. patents held by Robert 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 a settlement agreement reached in December 1999, which established the license." MIC added that there is pending litigation, filed in April 2001 in the 9th Circuit Court, stemming from the settlement agreement. It added that there are only two companies now licensed under the Herschler patents--Cardinal Nutrition in Vancouver, Wash., and Chemiplus in Japan. Calls to MIC's legal counsel had not been returned at press time.

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 to invalidate two animal use patents, which was dismissed with the settlement agreement, "would have been successful." When contacted for further clarification on the issue, a Carolwood representative said the company had no further comment. Carolwood supplies Lignisul MSM.