ITC Releases 'Botox Dispute' Ruling: "End of Controversy" VS "Confirmation of Crime"

[Image source=Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] The full text of the final ruling by the U.S. International Trade Commission (ITC) on the trade secret infringement lawsuit between Medytox and Daewoong Pharmaceutical over botulinum strains was released on the 14th.

The ITC viewed Daewoong Pharmaceutical's misappropriation of Medytox's manufacturing process technology as a violation of customs law and grounds for disposition, but stated that Medytox's strain itself does not qualify as a trade secret.

Earlier, on December 16 last year (local time), the ITC commission ordered a 21-month import ban in the U.S., ruling that Daewoong Pharmaceutical's botulinum toxin product "Nabota" (U.S. product name Jeuveau) violated Section 337 of the Tariff Act.

The key point of the final ruling was the determination that the botulinum strain is not a trade secret. In the preliminary ruling in July last year, the ITC found that Daewoong Pharmaceutical had misappropriated Medytox's strain and manufacturing technology, but ultimately concluded that only the manufacturing technology was applicable.

The two companies showed differing reactions regarding the fact that the strain was not recognized as a trade secret and that Daewoong Pharmaceutical infringed on Medytox's manufacturing technology.

Daewoong Pharmaceutical stated that with the ITC ruling that Medytox's strain is not a trade secret, all of Medytox's claims related to the strain have been dismissed. However, they plan to appeal the allegations related to the manufacturing process technology infringement.

Daewoong Pharmaceutical said, "Medytox's process is merely a widely known technology that has been publicly available for decades and differs significantly from ours in many aspects," adding, "We will prove at the Federal Circuit Court of Appeals that the ITC's decision regarding process technology infringement is a clear misjudgment and correct all errors."

Medytox expressed regret that the strain was not recognized as a trade secret but viewed that criminal acts were confirmed.

Medytox said, "Genetic analysis revealed that Daewoong Pharmaceutical's strain originated from Medytox," adding, "We do not agree with the judgment that the strain is not a trade secret, but even if it is not, Daewoong Pharmaceutical has no right to misappropriate our strain and manufacturing process."

They further stated, "It has been clearly revealed that the manufacturing process technology was misappropriated as a trade secret, leading to the import ban," and added, "We will request prohibition of use and return of rights for the strain and manufacturing process, as well as demand disposal and compensation for products already produced or distributed."

Medytox and Daewoong Pharmaceutical have been in conflict since 2016 over the source of the botulinum strain, the raw material for botulinum toxin products commonly called 'Botox.' Medytox has claimed that Daewoong Pharmaceutical misappropriated its botulinum strain, while Daewoong Pharmaceutical has firmly denied this, stating it is a different strain.