Court rules in FMC Corporation's favor in patent infringement case against Shandong Weifang Rainbow Chemical Co. Ltd.

Rhea-AI Summary

FMC Corporation (NYSE: FMC) recently won a patent infringement case against Shandong Weifang Rainbow Chemical Co. Ltd. in China. The court ruled that Rainbow infringed on FMC's patent for the insecticide chlorantraniliprole, leading to a permanent injunction against Rainbow to cease production and sales. Additionally, Rainbow is ordered to compensate FMC for damages. This ruling reinforces FMC's commitment to protecting its intellectual property and underscores the importance of innovation in crop protection solutions.

Positive

• Court's ruling in favor of FMC, strengthening its patent protection in China.
• Permanent injunction against Rainbow to stop producing and selling infringing products.
• Financial compensation ordered from Rainbow enhances FMC's financial position.

Negative

• None.

PHILADELPHIA, Sept. 13, 2021 /PRNewswire/ -- FMC Corporation (NYSE: FMC) announced that Qingdao Intermediate Court in China has ruled in its favor in the chlorantraniliprole patent infringement suit against Shandong Weifang Rainbow Chemical Co. Ltd. ("Rainbow"). The Court found Rainbow infringed on FMC's composition of matter patent for the insecticidal active ingredient chlorantraniliprole and a key intermediate to manufacture chlorantraniliprole.

The judgement includes a permanent injunction ordering Rainbow to immediately stop manufacturing, selling, offering to sell and using chlorantraniliprole, upon the effective date of the judgement. The court also ordered the China-based crop protection manufacturer to compensate FMC for related damages. Rainbow's infringement had enabled it to unfairly compete in the crop protection market and benefit from FMC's significant investments in this important product. 

"We are pleased with the decision of the Court," said Michael Reilly, FMC executive vice president, general counsel and secretary. "This decision strengthens FMC's confidence in protecting and enforcing its patents in China. This result also reinforces the value of our commitment to bring innovation to growers around the world." 

FMC maintains an extensive patent estate for its proprietary chlorantraniliprole technology, including patents that cover active ingredient composition of matter, manufacturing, formulations and other areas protected by intellectual property laws in the U.S., China, India, and other important agricultural markets throughout the world. The company has invested significantly to research, develop and commercialize chlorantraniliprole, a proprietary, breakthrough technology designed to control a wide variety of destructive insects that can destroy a farmer's crops and dramatically lower food production. FMC markets its products that contain chlorantraniliprole under several brand names around the world, including Rynaxypyr^® active, Coragen^® insect control, Altacor^® insect control, Prevathon^® insect control, Premio^® insect control and Ferterra^® insect control.

"Intellectual property rights are essential for the continued innovation of crop protection solutions and thereby serve the interest of our growers, customers, investors, employees, suppliers and partners. Infringing, illegal and counterfeit crop protection products not only reduce incentives for investing in innovation, they can pose a health and safety risk for growers and consumers, as well as an environmental hazard," said Reilly. "FMC is committed to product stewardship, sustainability and vigorously defending our intellectual property. By enforcing our patents, we help keep these illegal products out of the market."

About FMC

FMC Corporation is a global agricultural sciences company dedicated to helping growers produce food, feed, fiber and fuel for an expanding world population while adapting to a changing environment. FMC's innovative crop protection solutions – including biologicals, crop nutrition, digital and precision agriculture – enable growers, crop advisers and turf and pest management professionals to address their toughest challenges economically while protecting the environment. With approximately 6,400 employees at more than 100 sites worldwide, FMC is committed to discovering new herbicide, insecticide and fungicide active ingredients, product formulations and pioneering technologies that are consistently better for the planet. Visit fmc.com to learn more and follow us on LinkedIn^® and Twitter^®.

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SOURCE FMC Corporation

FAQ

What was the recent court ruling involving FMC and Rainbow Chemical?

A Chinese court ruled in favor of FMC, stating that Rainbow Chemical infringed on FMC's patent for chlorantraniliprole, leading to a permanent injunction against Rainbow.

What does the court ruling mean for FMC's business?

The ruling enhances FMC's patent protection, allowing the company to safeguard its investments and market share in the crop protection sector.

What is chlorantraniliprole?

Chlorantraniliprole is an insecticidal active ingredient developed by FMC, used to control various destructive insects that affect crops.

How will the ruling affect FMC's shareholders?

The favorable ruling may increase shareholder confidence by reinforcing FMC's market position and protecting its intellectual property.