Michael Foods, Inc. (Nasdaq: MIKL) announced today that it has settled its egg product patent infringement litigation against Nulaid Foods, Inc. Nulaid Foods agreed to a consent judgment entered by the U. S. District Court for the Eastern District of California and entered into a settlement agreement with Michael Foods in order to end the litigation. In the consent judgment, Nulaid acknowledged the validity and enforceability of the patents licensed by Michael Foods, as well as Nulaid’s past infringement of the patents. Under the settlement agreement, Nulaid will sublicense Michael Foods’ patented technology for extending the shelf-life of liquid eggs as licensed from North Carolina State University (“NCSU”). Under the sublicense, Michael Foods will realize royalty payments from Nulaid’s sales of extended shelf-life liquid whole eggs for the duration of the patents’ lives. Also, a one-time payment was made by Nulaid to pay for all its past production of the products covered by the patents.
Michael Foods will continue to vigorously defend its patent rights, noting that other parties that have been infringing the NCSU patents since their original issuance may be liable for damages based upon their infringement.
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Michael Foods, Inc. is a diversified food processor and distributor with particular interests in egg products, refrigerated grocery products, specialty dairy products and refrigerated potato products. Principal subsidiaries include Papetti’s Hygrade Egg Products, Inc., M. G. Waldbaum Company, Crystal Farms Refrigerated Distribution Company, Northern Star Co. and Kohler Mix Specialties, Inc.
