What's Happening?
The EVERY Company and Onego Bio are embroiled in a legal dispute over intellectual property rights concerning the production of ovalbumin, a primary protein in egg whites, through precision fermentation.
The EVERY Company utilizes yeast as its host microorganism, while Onego Bio employs fungus. The conflict centers on whether Onego Bio is infringing on a 'foundational' patent held by EVERY, which covers ovalbumin expression across various hosts. Onego Bio has filed a lawsuit claiming that EVERY's patent is invalid and unenforceable, and accuses EVERY of demanding unwarranted patent licensing fees and interfering with its business by warning potential investors of patent infringement risks. EVERY, on the other hand, alleges that Onego Bio has been the aggressor, seeking a license and threatening litigation if not granted. The case is currently being heard in the US District Court for the Western District of Wisconsin.
Why It's Important?
This legal battle highlights the growing tensions in the food technology sector, particularly in the realm of alternative protein production. The outcome of this case could have significant implications for the industry, potentially affecting investment flows and the pace of innovation. If EVERY's patent claims are upheld, it could set a precedent for how intellectual property is managed in the precision fermentation space, potentially stifling competition. Conversely, if Onego Bio prevails, it could encourage more companies to enter the market, fostering innovation and potentially lowering costs for consumers. The case also underscores the challenges startups face in navigating complex IP landscapes while trying to scale their operations.
What's Next?
The court's decision on whether to dismiss Onego Bio's lawsuit or proceed with discovery will be a critical next step. If the case moves forward, it could lead to a protracted legal battle with significant financial implications for both companies. Stakeholders in the food technology industry, including investors and other startups, will be closely monitoring the proceedings, as the outcome could influence future business strategies and partnerships. Additionally, the case may prompt discussions on the need for clearer IP regulations in the rapidly evolving field of alternative proteins.
