Oxford Nanopore is moving towards litigation against BGI, a significant player in Chinese biotech, due to alleged contractual breaches.
- The conflict arises from accusations that BGI used Oxford Nanopore’s technology knowledge to develop its own similar platform.
- Shareholders were informed about a filed US court application to serve subpoenas, a preliminary step before an official lawsuit in England and Wales.
- Oxford Nanopore has outlined claims related to breaches of contractual obligations, common law confidence, and duties under trade secret regulations.
- Both companies have remained tight-lipped, with Oxford Nanopore’s shares reflecting a slight decline in response to the news.
Oxford Nanopore, a notable entity in the field of molecular sensing, has declared its intention to file a lawsuit against Beijing-based BGI, alleging a significant breach of contract. The lawsuit is a consequence of perceived violations relating to the misuse of proprietary technology, with accusations directed at BGI for potentially leveraging this technology to enhance its own nanopore sequencing platform.
The company has revealed to its shareholders that it filed an application in the Northern District of California court. This application seeks approval to serve subpoenas, a move that preludes an anticipated legal battle set to unfold in the courts of England and Wales. The focus of this legal action is not only BGI but also MGI, their former subsidiary, now an independent entity.
Oxford Nanopore’s allegations extend beyond simple contractual breaches. They comprise claims such as infringement of trade secret regulations and common law confidence breaches. Moreover, there is a demand for entitlement to a license for specific patents that BGI is perceived to have used without authorization. These steps highlight Oxford’s strategic legal positioning in safeguarding its technological advancements.
The roots of this conflict trace back to a previous collaboration, where BGI, a former customer, conducted research utilizing Oxford Nanopore’s technology. It is alleged that BGI overstepped its bounds by using the insights gained to drive commercial development of a competing product. A spokesperson from Oxford Nanopore underscored the company’s stance, suggesting that BGI’s commercialization efforts infringe upon proprietary rights held by Oxford Nanopore.
Market reactions to the emerging legal tussle have been immediate, with Oxford Nanopore’s share price dipping 2.8% shortly after the announcement, hitting 140p. The company’s restraint in commenting further signifies the gravity and potential ramifications of the impending legal proceedings. BGI and its offshoot MGI have been solicited for responses, though their perspectives remain pending.
The evolving legal scenario between Oxford Nanopore and BGI underscores the complexities of safeguarding intellectual property in biotech collaborations.
