BASF sues Makhteshim, Cheminova over insecticide fipronil

BASF SE, the world’s biggest chemical company, filed U.S. patent-infringement lawsuits against Makhteshim-Agan Industries Ltd. and Cheminova A/S over their plans to sell insecticides using the chemical fipronil.

BASF, in complaints filed in federal court in North Carolina, claims Makhteshim and Cheminova would infringe patents that cover technology used in Ludwigshafen, Germany-based BASF’s Termidor insecticide.

Termidor, which has been sold for 10 years, is the top- selling termite product in the U.S., with more than a quarter of the market, according to Nevin McDougall, group vice president for crop protection in North America for BASF. Makhteshim and Cheminova are planning to begin selling their versions in August, when one of three fipronil related patents expires, he said.

To allow sales by the rivals would “inflict irreparable and irreversible harm” and cause BASF “to suffer lost market share, price erosion and damage to the goodwill and reputation” of the company, BASF said in the complaints.

BASF is seeking to prevent sales until the expiration of all three patents. One is for a process of making the chemical and the other two relate to how it is applied, McDougall said. Bayer AG’s Cropscience unit, which licenses two of the patents to BASF, also joined in suing Makhteshim and Cheminova.

BASF and Bayer also are seeking a court order that would immediately prevent the two companies from selling their fipronil products, even before a trial is held. The lawsuits also seek cash compensation.

Termidor Unit Sales

Termidor is applied to the ground surrounding a home. BASF doesn’t break out sales of Termidor. The unit that sells the termite killer, along with agricultural products, generated sales of 3.6 billion euros ($4.8 billion) last year, McDougall said.

"Cheminova does take patent rights very seriously,” said Martin Petersen, who heads the Lemvig, Denmark-based company’s U.S. unit. “We are very confident that we are not in imminent infringement of any patent surrounding this pesticide.”

John Freebairn, a spokesman for Makhteshim, didn’t immediately respond to a voice-mail seeking comment. Makhteshim, based in Tel Aviv, is the world’s largest maker of generic agrochemicals.

The cases are BASF Agro B.V. Arnhem Wadenswil Branch v. Cheminova Inc., 10-cv-00274, and BASF Agro B.V. Arnhem v. Makhteshim Agan of North America, 10-cv-00276, U.S. District Court, Middle District of North Carolina.