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A small New Zealand biotech company alleges it has had its intellectual property hijacked by an overseas customer.
Blis Technologies said it has found that the key customer has filed a patent for two of its processes in the USA, Europe, and China, which was expected to cut its revenue and add to its costs.
Blis has developed probiotic products for mouth, throat, and skin healthcare, and disclosed trade secrets, with a non-disclosure agreement, to the European manufacturer as it worked on fermentation processes.
It said a patent named two employees from the manufacturer as the inventors of the processes, and the wording in some parts of the application was identical or nearly identical to the information Blis disclosed.
"Blis is concerned by the release of its confidential information in the patent application and the potential impact that this may have on Blis' ongoing operations," the company said in a statement to the NZ stock exchange.
It said the use of its trade secrets posed considerable financial risks to its operations.
"A reduction in revenue is expected in the short term due to less sales of Blis' probiotic ingredients. It is expected that this key customer will terminate its arrangement with Blis as a result of its patent application."
Blis said it was taking legal advice, was challenging the patent, and would take action against the manufacturer and customer.
It said it had cash reserves as it looked for alternative strategies.
