HeiQ PLC on Monday said its subsidiary HeiQ Materials AG has filed a breach of exclusive agreement complaint against ICP Industrial Inc in the US.

HeiQ is a London and Zurich-based materials and textile technology company.

In March last year, HeiQ signed an exclusive license & chemicals supply agreement with ICP Industrial Inc, a division of ICP Group.

The five-year contract, which was subject to renewal after the first two years, gave ICP exclusive worldwide rights to apply HeiQ Viroblock to coatings for printing processes such as commercial print, food, beverage and pharma packaging.

At the time, HeiQ said it expected the contract to deliver $30 million of royalty revenue.

On Monday, the company said it has filed complaint in the US District Court for the Western District of North Carolina, Charlotte Division, against ICP Industrial.

HeiQ said that ICP has breached the agreement by failing to pay royalties or minimum exclusivity fee payments and failing to provide timely and accurate royalty reports.

Contractual minimum exclusivity fees for the contract term amount to $30 million in total, the company added.

HeiQ Co-Founder & Chief Executive Carlo Centonze said: ‘It is unfortunate that we must take this action against ICP to enforce our agreement, but we cannot allow ICP to use our valuable intellectual property without honouring the terms to which they have agreed. We intend to enforce it in full. Despite this claim, our Hygiene Technology’s Coatings & Polymers business unit continues to progress well.’

Shares in HeiQ were down 2.8% to 70.00 pence each in London on Monday afternoon.

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