Genus vs Sexing Technologies: damages relatively modest

Genus PLC (LSE: GNS) has announced the damages verdict from its patent dispute with Sexing Technologies, with compensation terms appearing relatively light.

The announcement is the latest update from the on-going court battle between Genus and Sexing Technologies which found the former guilty of infringing two patents on Friday.

The US District Court for Western Wisconsin found that GNS should pay ST $750,000 upfront, and ongoing royalities of $1.25 (£0.97) per use of ST's patent 8,207,987, and $500,000 upfront and $0.50 (£0.39) per use of patent 8,198,092.

Singers said that the payment terms were relatively modest:

"The upfront payments, future royalties and damages payable by Genus to Sexing Technologies (ST), as determined by the Wisconsin jury, are in our view relatively modest."

They also highlight the injunction that Genus are seeking to allow the termination of the original contract. Singer maintain their cautious outlook on valuation grounds.  

VSA said that it viewed the damages as fairly light, especially considering previous settlements in the sector: 

"...although GNS will be required to pay an ongoing royalty, the good news is that the company will be free to commercialise its own sexed semen processing technology. This will likely result in an operating cost saving of c£5m, minus the royalties paid to Sexing Technologies."

Liberum also covered the announcement, highlighting that Genus will now be able to launch its own technology.