Companies Duel Over Technology Ownership : Licensing: An Irvine medical testing firm is fighting its former parent for the right to market an AIDS test.
The developer of a seven-minute AIDS test and its former parent company have traded temporary restraining orders over the ownership of technology.
Editek Inc. in Burlington, N.C., and Disease Detection International Inc. in Irvine are arguing over a licensing agreement they made in 1985, when Editek formed Disease Detection.
The subsidiary was spun off in 1988.
Over the years, both companies have continued to develop biological tests. Disease Detection in November began clinical trials of its SeroCard (R) HIV-1 test; in August, Editek announced that it had won a patent that it thinks covers all rapid, one-step tests.
Now, their claims seem to indicate that they are stepping into one another’s territory. Other than press releases issued Monday, neither company would comment on the dispute.
A judge is scheduled to hear arguments from both sides for preliminary injunctions on Feb. 8 in Superior Court in Santa Ana. Disease Detection filed its papers on Friday; Editek filed on Monday.
When Editek formed Disease Detection, it granted the subsidiary a perpetual worldwide license, Disease Detection said. That license also permitted Disease Detection the exclusive right to sub-license, the company said.
Editek approached a Disease Detection licensee in September, according to the Irvine company, and said one of its tests would be covered by Editek technology and patents. Disease Detection alleges that, by approaching the licensee, Editek violated the 1985 agreement. The court filing seeks an injunction barring Editek from doing so again.
For its part, Editek alleges to have ended the agreement in 1988. Disease Detection returned licensed know-how in June of that year, Editek said, but announced that it would seek arbitration of the termination of the license agreement. It never did so, Editek said.
Since the August patent, Editek said, Disease Detection has attempted to revive the license agreement.
Editek sued Disease Detection in December, alleging that the company had violated its right to certain technology.
