The complex situation began in October last year, when Swiss-headquartered materials science business HeiQ Materials filed a legal complaint for breach of contract against ICP Industrial, part of ICP Group.
In March 2021 ICP signed a five-year, worldwide exclusive licence deal with HeiQ for the use of its Viroblock technology in graphic arts coatings for printing processes such as commercial print, food, beverage and pharma packaging.
The $140m (£115.76m) turnover ICP Industrial business is now in the process of being taken over by Netherlands-based coatings specialist Stahl Group, with the deal announced earlier this month.
HeiQ’s latest filings were made shortly after the sale was announced, and also in response to ICP Industrial’s counterclaim and motion to dismiss the case.
In its amended complaint HeiQ accused ICP Industrial of fabricating reasons for delaying sales, and of implementing “unrealistic and uncompetitive pricing” that doomed any effective launch.
“Capturing market share during the onset of the pandemic was critical, in light of the enormous changes in consumer awareness as to product safety caused by Covid-19. ICP apparently never had any intent to bring products with Viroblock to market at competitive prices.
“Instead, ICP ‘captured and killed’ the Viroblock technology, which allowed ICP to corner the market for Viroblock, away from its competitors, to protect ICP’s market share. ICP was also grossly negligent in its efforts to successfully launch, market and sell an antimicrobial coating product during the Covid-19 pandemic despite its representations to the contrary,” HeiQ stated.
Parts of the filing are redacted due to commercial sensitivity. However, HeiQ asserts that ICP’s “wrongful actions” caused HeiQ significant lost profits and other damages.
HeiQ CEO Carlo Centonze told Printweek: “HeiQ’s position remains unchanged, that ICP has a valid contract with us, which stipulates binding financial obligations for an exclusivity.
“We have re-filed our claim with more data and detail following ICPs legal counsel first replica, and are now additionally claiming lost business and other damages. Our total claim is well in excess of 100 million USD."
He said the pending takeover “will not change our stance”.
“As the old Latins used to say, pacta sunt servanda, or ‘agreements must be kept’.”
HeiQ’s court papers also cite the results from test LS21-01269 by Microbe Investigations performed for ICP’s subsidiary, Hi-Tech Coatings International, dated May 2021, which demonstrated that “all treated coatings showed perfect performance against the tested microorganisms”.
ICP acquired Hi-Tech Coatings from Heidelberg just over three years ago. The firm has operations in Aylesbury and the Netherlands.
HeiQ’s Viroblock antiviral and antimicrobial technology is used in range of other applications beyond commercial printing, including medical nonwovens, apparel, home textiles and mattresses.
The firm's expected sales for last year have been impacted by a number of factors that affected global market conditions, and were forecast to be around 20% below market expectations at between $54m-$55m in its latest trading update.
At the time of writing ICP had not responded to requests for comment.
