CCM: CJ Group prosecutes EPPEN Biotech for patent infringement 09-29-2016

Summary: EPPEN Biotech was prosecuted by CJ Group for infringing lysine strain production patent. In the short run, EPPEN Biotech would be less affected by this lawsuit, but its export business would be hindered by this.


On 6 March, 2015, CJ Group announced that it sued Ningxia EPPEN Biotech Co. Ltd. (EPPEN Biotech) for infringing its patent on producing lysine strain (Patent Number: 200980103115.6) in Inner Mongolia District Court. Accordingly, this strain is used to produce L-lysine monohydrochloride and L-lysine sulphate. Then, CJ Group planned to precede lawsuit against EPPEN Biotech in other places to further oppose EPPEN Biotech's infringement.


This suit will not pose great effect on the above two enterprises in a short time. At present, EPPEN Biotech still makes quotations and supply goods as usual. It is noted that the lawsuit may affect Meihua Holdings Group Co., Ltd. (Meihua Bio)'s acquistion plan because it had acquired EPPEN Biotech. Meihua Bio had sent a inquiry letter to Yan Xiaoping, president of EPPEN Biotech. On 16 March, EPPEN Biotech announced that they have not got the legal formalities from related department.




It is noted that EPPEN Biotech's export business would be affected in the long run, if CJ Group win the lawsuit. Chinese amino acid manufacturers are weak in R&D ability and strain technologies of amino acids, as well as small number of patents. Foreign amino acid giants will sue Chinese amino acid manufacturers for infringing their strain patents, thus, part of amino acids may be banned to export into other countries. This would restrict Chinese amino acid manufacturers to expand the international market. Other similar lawsuit between Ajinomoto and Global Bio-chem Technology Group Co., Ltd. happened (for more information, please refer to Amino Acids China E-News 1409, P18, Ajinomoto's Appeal against Global Bio-chem Disallowed). Global Bio-chem's export business to the Netherlands market suffered a lot because it lost the suit.


Besides, Chinese amino acid market may face greater pressure if EPPEN Biotech's export business hindered. In the past three years, the feed-grade amino acid export business had brought great benefit to EPPEN Biotech. The income from lysine and threonine exceeded USD910.94 million (RMB5.6 billion), of this, the income from export business exceeded USD422.94 million (RMB2.6 billion). If EPPEN Biotech's lysine flows into the domestic market, along with the serious overcapacity in China, which will together push down the market price of lysine.


Note:
Patent No: CN200980103315.6
Application date: 23 Jan., 2009
Title: A modified promotor and its preparation method of L-lysine
Applicant: CJ Group


About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

 

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