Novozymes will receive $15.3 million in a patent suit settlement with a rival firm over biofuels technology, assuming a judge approves the settlement this week.
The settlement represents roughly the equivalent of Novozyme’s projected profit for 2007 of between 75-80 million Danish Krone. The exchange rate of Krone to U.S. dollars was 5.51 on Tuesday.
Novozymes, which has a major operation in Franklinton and is based in Denmark, disclosed the settlement amount in a statement on Tuesday.
The company prevailed in its suit in U.S. court in Delaware against rival firm Danisco. The judge ruled in Novozyme’s favor in February.
The settlement includes damages of $8.2 million. Both companies also agreed not to appeal the court decision.
“The settlement is currently awaiting the judge’s final approval and signature, which is expected before the end of this week and is regarded as a formality,” Novozymes added.
The amount is “due for payment immediately,” the company said.
No other details of the agreement will be disclosed.
Novozymes is a world leader in the development of enzymes that could make alternative fuels more widely available. Novozymes had sued Danisco for infringing on its patent covering the enzyme Spezyme Ethyl, which is used to help produce biofuel.
The judge ruled that Danisco had willfully infringed the patent and doubled damages.
“We are satisfied that the court concluded that Danisco willfully infringed Novozymes’ patent rights and entered a permanent injunction against Danisco,” said Kristian Merser, Novozymes’ general counsel, in a statement when the ruling was announced. “Novozymes invests a lot of money in research and development in order to provide and improve products for our customers. Our patents protect this investment and insure that our competitors compete fairly with us in the market place.”
Novozymes filed suit against Genecore International in 2005. Danisco later acquired Genecore. Last August, the federal court ruled against Danisco and its competing product with Novozymes was withdrawn from the market.
Novozymes produces more than 700 different enzyme and microorganism products and touts itself as the “biotech-based world leader in enzymes and microorganisms.” Its products are sold in more than 130 countries and are used by 40 different industries for such uses as water, energy, raw materials and waste.