Neogen is also seeking to recover its attorney fees and litigation costs in this case. Vicam, L.P. previously filed a motion seeking a ruling that, even if its patent infringement allegations were false and defamatory, Neogen was not entitled to recover damages. However, the Court denied that motion and ruled that the issue of damages is an issue for the jury to decide at trial. Of course, it must be emphasized that before Neogen ever introduced its new product into the marketplace, we obtained legal opinions from two independent patent law firms, which correctly advised us that Neogen's new aflatoxin detection product did not infringe any patent licensed to Vicam. Aflatoxin is a known carcinogen and is subject to FDA regulations.
Companies using grains and nuts routinely test for the toxin as part of their food safety programs.
In August 1996, Vicam, L.P. and Radlo sent a letter to a large number of companies and other entities alleging that Neogen's new aflatoxin diagnostic test infringed two patents licensed to Vicam. The letter threatened those companies and entities with legal action if they purchased Neogen's new product. When Vicam, L.P. and Radlo refused Neogen's request for a retraction of the patent infringement allegations, Neogen pursued legal action against them, seeking a declaratory judgment of non-infringement and monetary damages. Neogen Corporation develops and markets products and services dedicated to food and animal safety. The Company's Food Safety Division markets diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases and sanitation concerns.