Court orders University of Florida accounting to Phoenix.ATLANTA--(BUSINESS WIRE)--Jan. 10, 1995--Phoenix Advanced Technology Inc. President and Chief Executive Officer Rod McClain, announced Tuesday that it has taken a major step toward enforcing its right to license fees from the commercialization of certain polyamine polyamine /poly·am·ine/ (-am´en) any compound, e.g., spermine or spermidine, containing two or more amino groups. pol·y·a·mine n. and catecholomide chelator chelator A chemical–eg, EDTA that binds metal ions from solutions. See Chelation therapy. research (the "Foundation Technology") performed at the University of Florida University of Florida is the third-largest university in the United States, with 50,912 students (as of Fall 2006) and has the eighth-largest budget (nearly $1.9 billion per year). UF is home to 16 colleges and more than 150 research centers and institutes. . Phoenix and its 78% owned subsidiary Progress Research Inc. filed suit against the University of Florida and the University of Florida Research Foundation (the "University") to establish Progress' entitlement An individual's right to receive a value or benefit provided by law. Commonly recognized entitlements are benefits, such as those provided by Social Security or Workers' Compensation. to a portion of license fees received by the University pursuant to a May 1989 License Completion Agreement for research previously funded, in part, by Phoenix. Under the License Completion Agreement, Progress Research Inc. is entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to receive 25% of any license fees (including moneys, property and capital stock) received by the University (after deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. of actual costs of patent protection paid by the University) until $600,000 has been paid to Progress. Thereafter, 5% of all license fees received by the University for the Foundation Technology shall be paid to Progress Research Inc. At the University's request, trial of the case was divided into two parts. Initially, the court considered whether Phoenix had breached the License Completion Agreement by the issuance of a June 1993 press release. The release was issued when Phoenix became aware almost a year and a half after the fact, that the University had relicensed the Foundation Technology. The court held that Phoenix was not in breach of the contract. In a 12-page order dated Dec. 21, 1994, the Alachua County Circuit Court also found: -- The University licensed polyamine technology, in December 1991, to SunPharm Corp. for which it has received money and shares of stock as license fees. -- The University failed to tell SunPharm of the existence of the Progress License Completion Agreement for a year after the execution of the SunPharm license agreement. -- The University did not disclose to Progress that the University had received consideration for the SunPharm license; and when information and later an accounting was requested by Progress/Phoenix, the University refused to provide any information. -- As noted above, the press release issued by Phoenix when it became aware of the SunPharm license approximately one and one half years after the fact did not violate the License Completion Agreement. -- Progress Research Inc. was entitled to share in any consideration received by the University relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the chelator and polyamine projects regardless of the source or type of such consideration, including stock. The Court has ordered that the University provide an accounting to Progress/Phoenix of all consideration of any nature received by the University from SunPharm or any of its subsidiaries or affiliates pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the Foundation Technology. The Court also ordered the University to disclose to Progress the receipt of any sums or property which may be arguably ar·gu·a·ble adj. 1. Open to argument: an arguable question, still unresolved. 2. That can be argued plausibly; defensible in argument: three arguable points of law. considered to be license fees. The University has filed a motion for rehearing rehearing n. conducting a hearing again based on the motion of one of the parties to a lawsuit, petition or criminal prosecution, usually by the court or agency which originally heard the matter. . A second trial to determine damages due Progress/Phoenix has not yet been scheduled. CONTACT: Phoenix Advanced Technology Inc., Gainesville Arnold Zimmerman, 904/373-1945 |
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