BASF, Cheminova reached settlement in fipronil patent infringement lawsuit

Date:10-06-2011

Judge William L. Osteen, Jr. of the U.S. District Court for the Middle District of North Carolina entered a minute entry on Oct. 3 stating the parties in the fipronil patent infringement lawsuit involving BASF and Cheminova have reached a settlement in principle in all matters relating to the case.

The court granted a period of 60 days, up to and including Dec. 5, 2011, to conclude the settlement talks and file a notice or stipulation of dismissal. As a result, all pending motions are taken under advisement and no rulings will be issued until further notice by the parties.

The settlement in principle is the latest chapter in the hotly-contested lawsuit that began 18 months ago when BASF filed two separate patent-infringement lawsuits in U.S. District Court. Since the original court filings on April 8, 2010, more than 250 different motions, court orders and other related legal actions have taken place as the parties – BASF Agro, Cheminova A/S and Makhteshim Agan of North America (AgroNews 2010-04-16), along with its U.S. subsidiary, Control Solutions, Inc. – jockeyed for position in the high-stakes litigation that has been a popular topic of conversation at industry trade shows and educational events throughout the past year. The most recent court ruling only involves the Cheminova case; the Makhteshim case is still pending.

"BASF and Cheminova have reached an agreement in principle on the BASF case, as reflected in the Court records on Oct. 3, 2011,” said Tom Hill, communications manager, specialty products, BASF. "BASF will not discuss further details until developments warrant.”

Termidor, BASF’s flagship termiticide, generates more than $75 million in annual revenues, representing about 35 percent of the U.S. termite control market and approximately 65 percent of the liquid termiticide market. More than 4 million structures have been treated with the non-repellent termiticide since it was introduced to the industry 10 years ago. As a result, there’s a lot at stake in any litigation relating to the future of fipronil. While it’s unlikely the specific details or financial arrangements of the agreement in principle will be announced, it’s now clear the ultimate conclusion to this widely watched case may be on the horizon, providing PMPs, distributors and chemical suppliers serving the pest management industry with much-needed clarity on likely market conditions in 2012.