High-Stakes IP Dispute Erupts Between Startups in Egg Protein Production
The ongoing intellectual property dispute between two innovative startups specializing in egg protein production through precision fermentation has escalated significantly this week. The EVERY Company has accused Onego Bio of harassment, while Onego has countered with allegations of false advertising from EVERY.
The Core of the Dispute
At the center of this legal confrontation is a foundational patent held by The EVERY Company, which pertains to the production of ovalbumin, the key protein found in egg whites, using different host microorganisms. EVERY utilizes yeast for its production, whereas Onego Bio employs a fungal approach. The crux of the matter is whether Onego’s methods infringe on EVERY’s patent.
Legal Maneuvers by Onego Bio
In a recent lawsuit, Onego Bio expressed that it felt compelled to take legal action to clarify its position, asserting that the patent in question is “invalid and unenforceable.” Onego claimed that EVERY has been demanding “unwarranted patent licensing fees” and engaging in tortious interference by informing potential investors that Onego required a license from EVERY to avoid infringing its intellectual property.
Counterclaims from The EVERY Company
The EVERY Company, on the offensive, argues that “Onego has at all times been the only antagonist,” while asserting that it has continually sought to avoid litigation. EVERY contends that Onego initiated contact earlier this year seeking a licensing agreement and threatened legal action if EVERY did not comply.
What’s at Stake?
For Onego Bio: The company is currently establishing a manufacturing facility in Wisconsin and claims that EVERY’s ongoing legal threats are hindering its ability to attract investment and finalize its expansion plans.
For EVERY: Conversely, EVERY maintains that Onego’s attempts to negotiate a license came with threats of costly litigation, positioning their actions as a form of harassment.
Claims of Harassment and False Advertising
As the legal battle unfolds, EVERY has asked the court to pause any discovery until a judge decides on its motion to dismiss Onego’s lawsuit, which they characterize as a result of months of targeted harassment. Onego, however, argues for its right to remove the uncertainty surrounding its operations, criticizing EVERY for leveraging its patent rights for strategic advantages. They accuse EVERY of falsely advertising its products as bio-identical to egg proteins and attempting to coerce a merger to access Onego’s technology.
Investor Communications in Dispute
Both companies present contrasting accounts of investor sentiments. Onego alleges that a potential investor retracted a $50 million investment offer due to infringement concerns raised by EVERY. However, EVERY asserts that investors actually discussed a combined opportunity should a merger occur between the two firms, rather than considering an individual investment in either company.
Conclusion and Lasting Implications
This IP battle reflects broader tensions within the burgeoning field of precision fermentation. As legal proceedings continue, the implications for funding, technological access, and market position remain uncertain.
Further Reading:
- The EVERY Co raises $55m to scale egg proteins via fermentation, crosses line ‘from promise to proof’
- The EVERY Co and Onego Bio eyed merger before IP talks went south, court docs reveal
- ‘Objectively unreasonable’: Onego Bio slams The Every Co in high-stakes patent fight
- Onego Bio eyes Wisconsin site for chicken-free egg production, files GRAS notice
