GSK-HUL deal: Steer Engineering moves Delhi HC to prevent transfer of its IP, know-how

Fearing that there would be a transfer of its Intellectual Property and know-how in the acquisition of GlaxoSmithKline Consumer Healthcare’s brands by Hindustan Unilever, Steer Engineering has moved the Delhi High Court seeking appropriate protection..Steer Engineering had set up a pilot manufacturing facility in the premises of the manufacturing agent of GlaxoSmithKline Consumer Healthcare (GSK)..It has claimed that because of its extensive efforts on hardware as well as machine components, “optimal measurements were arrived at in respect of…temperature of the product, feed rate of solids, feed rate of enzymes, vacuum pressure levels of the equipment, moisture levels of the mix, selection of individual extruder elements, design of screw geometry and process parameters including screw speed, degree of fill, residence time”..It also claims to have provided necessary technology and know-how to GSK which enabled “scaling up of the Two Twin Extrusion Process being employed by it”..Therefore, with the announcement of the GSK-HUL deal for the acquisition of its healthcare brands like Boost, Horlicks and Maltova, earlier this month, Steer Engineering apprehended that third-party rights are being created in the technology, know-how and Intellectual Property given to GSK by it..Steer Engineering asserted that in light of the Development Services Agreement and the Task Order between it and GSK, it is entitled to protect its technology, know-how and IP in case GSK were to transfer the same to a third party..A single Judge Bench of Justice Rajiv Shakdher, therefore, in a hearing on December 5, granted time to counsel appearing for GSK to seek instructions on “whether the technology, know-how and Intellectual Property owned by the petitioner (Steer Engineering) is being transferred to a third party”..Till then, the Court ordered that status quo would be maintained..“It is made clear that if there is any such move, status quo will be maintained till further orders of the Court.”, the order states..When the matter came up for hearing on December 7, the Court directed GSK to file its response in the matter on an affidavit..The matter will be next heard on January 23, 2019. Meanwhile, the status-quo order would continue..Steer Engineering was represented by Senior Advocate Sandeep Sethi with Advocate Swathi Sukumar, along with Obhan and Associates lawyers Essenese Obhan, Neha Khanduri, Naveen Nagarjuna and Surya Rajappan..GSK was represented by Khaitan & Co Advocates Assem Chaturvedi and Ajay Bhargava..Read the December 5 order: