Spherix continues actions against Arla
licensee for food uses of the new sweetener tagatose, despite the
firm's recent launch, later than planned, of the low-calorie
sweetener into the US market.
Spherix is to continue its arbitration against Arla Foods, its licensee for food uses of the new sweetener tagatose, despite the firm's recent launch, later than planned, of the low-calorie sweetener into the US market.
Spherix is requesting damages for the long time taken to commercialize the product, seeking to clarify certain items in the License Agreement concerning royalty payments and to determine whether Arla's delay in commercialization has abrogated the license granted in 1996.
Speaking at a shareholders meeting this week, Spherix CEO Gilbert V. Levin noted that the License Agreement calls for royalties for a term and at rates determined by certain patent expirations. The arbitration should better define which patent expirations will trigger continued royalty payments, when reduced royalty rates go into effect, and when Arla is no longer obligated to make royalty payments.
Arla Foods has filed a counterclaim in the ongoing arbitration asking for unspecified monetary damages as well as orders directing Spherix to take certain actions. Spherix said it had anticipated this move as routine and will vigorously defend it.
The company also said it has gained the first quantities of Naturlose, the name for non-food uses of tagatose that were not licensed to Arla, through production of the sweetener from a continuing pilot study at a major university. Negotiations are currently underway for a joint venture to build a full-scale commercial facility for Naturlose.
Arla will present Tagatose at the Institute of Food Technologists show in Chicago from July 13-16, 2003.
