PIVEG Receives Stay of Injunction

PIVEG Receives Stay of Injunction

CELAYA, Mexico--Pigmentos Vegetales del Centro (PIVEG)was granted a temporary stay of injunction Jan. 31 after appealing to the U.S.Court of Appeals for the Federal Circuit. The preliminary injunction was issuedby U.S. Federal District Court for the Southern District of Iowa Jan. 2 andprohibited PIVEG from selling its purified lutein products for human consumptionin the United States.

At issue is alleged infringement by PIVEG of two U.S. patents(#5,382,714 and #5,648,564) held by Kemin Foods LC. The injunction was grantedon #5,382,714.

According to PIVEG, the scope of the patent has beenmisinterpreted to apply to lutein "suitable for human consumption"instead of the narrower subject of "substantially pure luteincrystals." In addition, PIVEG claims the patent is unenforceable becauseKemin did not disclose prior information about lutein preparation.

"We have developed our own proprietary processes andcapabilities and will continue to defend our right to provide our high qualityproducts to the U.S. market," said Roberto Espinoza, chief executiveofficer of PIVEG (www.piveg.com). "Kemin'sallegation that PIVEG is infringing these patents is frivolous and an attempt toeliminate competition through the judicial process rather than themarketplace."

Steve Hanson, vice president of marketing for Kemin (www.kemin.com),said the company believes the preliminary injunction served as an indicationPIVEG infringed on Kemin's patent, and the Court of Appeals would uphold thatdecision. "Kemin has invested significantly in the market for FloraGLOLutein," he said. "It is with these investments and the investmentsof our customers that the market has grown. Kemin will continue to protect thismarket and enforce its patent rights when infringement has occurred. Otherwise,these patents are meaningless."