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Genus ordered to pay US$2mln after cow semen court case

The court ruled, in addition to royalty payments, Genus must pay US$750,000 and US$500,000 for each patent, as well as US$750,000 damages.
A cow licking its chops
The tech allows farmers to select preferred female sperm cells from bull studs.

Animal genetics group Genus plc (LON:GNS) has been ordered by the court to pay at least US$2mln to Sexing Technologies following a court case over its sexed bovine semen processing technology.

The US District Court of Wisconsin ruled that in addition to the upfront payments of US$750,000 and US$500,000 for the two patents, Genus would have to pay on-going royalties of US$1.25 and US$0.50 per straw (unit of cow semen) on commercialisation of its two technology patents to Sexing Technologies.

In respect of the breach of the confidentiality obligations under the 2012 semen sorting agreement between the parties, damages were determined by the jury to be US$750,000.

However, the jury determined that the group had proved that Sexing Technologies had wilfully maintained monopoly power in the market for sexed bovine semen processing in the US since July 2012.

But the jury found that Genus had not proved that it had suffered injury to date as a result of the wilful maintenance of monopoly power.

Genus has now sought an injunction from the court to allow it to terminate the 2012 semen sorting agreement on ninety days’ notice and to provide relief from the restrictive provisions under that agreement.

Genus plans to commercialise its sexed semen technology in the US and globally, thereby introducing competition into the market.

Its technology for sexing bovine semen differs from other methods as it does not subject the sperm cells to high pressures and forces.

It allows farmers to select preferred female sperm cells from bull studs for use in artificial insemination of dairy cows. 

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Genus Timeline

February 16 2015

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