OB Holdings Berhad has informed that its subsidiary Orient Biotech Sdn Bhd had received a legal notice from Nature One Dairy (Hong Kong) Limited who is a customer of the group for breaching the purchase & supply agreement and that OB had infringed intellectual property rights of NOD.
The customer had subsequently invoked a Dispute Notice which states if any dispute or difference arises between the parties in respect of any matter relating to the NOD Agreement or a breach thereof, the party claiming that a Dispute has arisen must notify the other party in writing giving details of the Dispute.
Orient Biotech has been requested by NOD to provide a written confirmation that it will cease and desist from any dealings in respect of manufacture of a certain milk powder product for a particular new customer of the Group and provide full discovery of all dealings related to the product.
Based on the Dispute Notice, NOD is alleging that Orient Biotech is in breach of the agreement for infringement of NOD's intellectual property rights for manufacturing product using formulations, recipes and ingredients which are identical or very similar to its formulations, recipes and ingredients for the milk powder products manufactured by Orient Biotech for NOD.
OB says the contents of the Dispute Notice are inadequate to sufficiently determine the basis or merits of its claim.