Butamax and Gevo Enter Into Global Patent Cross-License and Settlement Agreements to Accelerate Development of Markets for Bio-Based Isobutanol and End All Litigation
The cross-license agreement grants both parties patent licenses to all fields for isobutanol and is structured to develop robust and sustainable isobutanol markets. The license will be royalty bearing for Butamax in certain fields and royalty bearing for
The accompanying Factsheet provides further details of the cross-license and settlement agreements.
Butamax will take the lead role in developing the market for isobutanol as an on-road gasoline blendstock. This will include progressing ongoing programs to gain required
While Butamax and
"We are very pleased to have reached this amicable and fair settlement. Setting up the marketing relationships, as we have done, brings to bear the capabilities of each of the companies," said Dr.
"The aim of these agreements is to accelerate development of markets for bio-based isobutanol," commented Butamax Chief Executive Officer
Both parties have agreed to keep all details relating to these agreements confidential, other than what is disclosed in this press release and the attachment, or is otherwise required to be disclosed by law.
Butamax™ is a trademark of Butamax™
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, statements related future demand for the licensing of
Factsheet: Butamax and Gevo Patent Cross-License and Settlement Agreements
Gevohave agreed to global settlement and cross license agreements resolving the ongoing intellectual property dispute and all current district court litigations will be dismissed by the parties.
Under the agreements Butamax and
Gevohave licensed all of their respective patents to each other, with rights to sub-license their respective technologies.
- Both parties are free to sell up to 30 million gallons per year royalty-free into any field, after which, certain fields bear royalties per the following table:
|Licensed Fields 1||"Lead" Party 2||Royalty|
|On-Road Gasoline Blendstocks||Butamax||- Gevo and its sub-licensees to pay Butamax a royalty|
|Jet (ATJ)||Gevo||- Butamax and its sub-licensees to pay Gevo a royalty|
|Marine Gasoline Blendstocks, Retail Packaged Fuels, Para-xylene||Neither||- Butamax and its sub-licensees to pay Gevo a royalty|
|Chemical Isobutylene Applications||Neither||- Gevo and its sub-licensees to pay Butamax a royalty|
|Off-Road Gasoline Blendstocks, Isooctane, Diesel, Solvents||Neither||- No royalty to be paid by either party|
- Covers key fields of use for isobutanol. The definitive agreements more specifically define the fields of use for isobutanol.
- The "lead" party will be responsible for progressing required approvals and managing the marketing and distribution of the other party's isobutanol in the respective fields.
The parties have agreed to leverage each other's regulatory approval and market development activities in order to accelerate the pace of market growth and to reduce duplication. Specifically:
Butamax will focus on gaining required approvals to support direct blending of bio-based isobutanol into on-road automotive gasoline, and is expected to market isobutanol for this application on behalf of both Butamax and
Gevowill focus on gaining required approvals to support use of renewable ATJ made from bio-based isobutanol, and is expected to market isobutanol for this application on behalf of both Gevoand Butamax.
- Butamax will focus on gaining required approvals to support direct blending of bio-based isobutanol into on-road automotive gasoline, and is expected to market isobutanol for this application on behalf of both Butamax and
The licensing technology packages offered by Butamax and
Gevowill differ at least as follows:
- The parties will not exchange or utilize each other's proprietary microorganisms.
- The parties' proprietary microorganisms will utilize different enzymes in the biobutanol pathway.
- The parties' process engineering designs will include different product recovery systems.
CONTACT: Media Contact
Karen Freedman/ David Rodewald The David James Agency, LLC+1 805-494-9508 firstname.lastname@example.org Investor Contact Mike Willis Gevo, Inc.+1 720-267-8636 email@example.com