CATALIST-LISTED medtech firm Biolidics on Thursday said it has issued a notice of arbitration (NOA) to Japan-based healthcare group Sysmex Corporation in light of disputes over intellectual property (IP).

 

This comes after Sysmex raised a counterclaim against Biolidics, alleging that Biolidics has breached some IP-related obligations.

 

Biolidics and Sysmex had signed an agreement in 2016 to jointly develop biochips. According to Biolidics, both parties had agreed to discuss patent applications before filing them. In October, Biolidics had claimed that Sysmex had breached this agreement by filing patent applications in the US, China, Japan and Europe without first reaching a joint agreement.

 

Biolidics had at the time sent a letter of demand to Sysmex asking, among other things, that Sysmex rectify the patent applications to reflect Biolidics as either joint or sole proprietor, as the case may be. But Sysmex has claimed that Biolidics, too, filed a patent application containing IP that may have belonged to Sysmex.

 

In a counterclaim received Wednesday, Sysmex asked that Biolidics' patent application be converted to one of joint ownership instead.

 

Biolidics said that, having consulted with its legal advisers, it is of the view that the counterclaim is " wholly without merit" . Biolidics is therefore seeking arbitration at the Hong Kong International Arbitration Centre.

 

It wants Sysmex to deliver up all of Biolidics' background IP that continues to remain in its possession. It is also seeking an injunction to restrain Sysmex' s directors, officers, servants, agents or affiliates from retaining, using or disclosing Biolidics' IP.

 

Biolidics said it has been advised that unless Sysmex voluntarily complies with the NOA claims, the arbitration is unlikely to conclude within FY2020. Thus, the company will continue to incur legal fees.