CJ CheilJedang Files Patent Infringement Lawsuit Worth 10 Billion Won Against Daesang
[Asia Economy Reporter Lee Seon-ae] CJ CheilJedang has filed a patent infringement lawsuit worth around 10 billion KRW against Daesang to protect its bio intellectual property rights.
According to the industry on the 24th, the Civil Division 62 of the Seoul Central District Court (Presiding Judge Yeom Ho-jun) has been assigned the patent infringement injunction lawsuit filed by CJ CheilJedang against Daesang in September and is currently reviewing the case. The trial preparation date has not yet been set. CJ CheilJedang's position is that its lysine development technology used as an animal feed additive has been infringed.
Lysine is an essential amino acid that is difficult to synthesize in the body and must be ingested through food. It is used in animal feed due to its effect of strengthening muscles and cartilage. When producing lysine, microbial fermentation technology is applied using strains, and the key issue in the lawsuit is whether Daesang infringed CJ CheilJedang's patent during the process of using strains in lysine production.
CJ CheilJedang is the global market leader in lysine production. As of the third quarter of this year, the cumulative sales of the Green Bio business (which produces industrial materials by utilizing the functions and information of living organisms), excluding bio resources and Feed & Care, amount to approximately 2.19 trillion KRW.
During the 1998 IMF (International Monetary Fund) foreign exchange crisis, Daesang sold its lysine business division to the German chemical company BASF. BASF transferred the lysine business to Baekkwang Industrial, a chemical company, in 2007, and Daesang reacquired Baekkwang Industrial in 2015, regaining the lysine business division.
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Daesang stated, "As this is an ongoing lawsuit, we are not in a position to comment at this time."
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