Oxford Nanopore, a prominent molecular sensing firm, is preparing to sue BGI, a Chinese biotech company, over a contract breach.
- The UK-based company has filed for permission to serve subpoenas in a U.S. court as part of its legal strategy.
- Oxford Nanopore alleges BGI used proprietary technology to develop competing products, violating confidentiality agreements.
- The lawsuit will address claims under various regulatory frameworks, including Trade Secrets regulations.
- This legal move led to a 2.8% drop in Oxford Nanopore’s share price.
In a significant legal manoeuvre, Oxford Nanopore Technologies, a leader in molecular sensing, has declared its intent to initiate a lawsuit against BGI, a notable Chinese genomics organisation. This action follows accusations that BGI, previously a client of Oxford Nanopore, utilised privileged information to develop its own nanopore-based platform, contradicting prior contractual agreements.
The London-listed company has proceeded to file an application in the U.S. Northern District of California. This application seeks judicial permission to issue subpoenas, a crucial step supporting their impending lawsuit in the courts of England and Wales. The legal action targets both BGI and MGI, a former subsidiary of BGI now operating independently after a corporate split.
Oxford Nanopore’s allegations encompass several legal infractions. These include breaches of contractual duties, common law obligations concerning confidentiality, and violations under the Trade Secrets (Enforcement, etc.) Regulations 2018. Additionally, Oxford Nanopore contends it is entitled to a license for specific patents allegedly misused by BGI.
The backdrop to these allegations involves BGI’s initial role as a customer engaging with Oxford Nanopore’s innovative technologies for research purposes. However, concerns have emerged that BGI transformed this engagement into a commercial opportunity, potentially infringing upon Oxford Nanopore’s expansive portfolio of intellectual property rights.
In anticipation of further legal proceedings, Oxford Nanopore refrained from making extensive public comments. However, the firm expressed scepticism regarding the global commercialisation prospects of BGI’s competing sequencing technology, citing potential infringements and misappropriations.
The unfolding legal battle highlights the complexities of intellectual property rights in the biotech sector and their impact on corporate strategies.
