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Paragon settles patent lawsuit against rival Malpack

By:

March 5, 2013

NASHVILLE, TENN. — Stretch film maker Paragon Films Inc. has settled a patent infringement lawsuit against competitor Malpack Ltd. of Ajax, Ontario, and Malpack's U.S. business unit, Malpack USA Inc.

As part of the settlement, Malpack will no longer manufacture or sell its VMax2 film in North America. The other terms of the agreement are confidential, according to a March 4 news release.

The suit, filed Sept. 19, 2012, in U.S. Federal District Court in Nashville, claimed that Malpack's VMax2 film violated a Paragon patent. Paragon sought both unspecified monetary damages and an injunction against Malpack to prevent further infringement.

The suit was dismissed with prejudice March 1, according to court filings.

Malpack officials could not immediately be reached for comment. The Canadian stretch film manufacturer has more than three North American plants and capacity of more than 100 million pounds, according to the company's website.

Paragon, based in Broken Arrow, Okla., makes polyethylene roll and specialty films for food packaging, agricultural and industrial applications. It has annual estimated sales of $145 million, according to the most recent Plastics News film and sheet industry ranking.

Paragon has plants at its headquarters in Broken Arrow and in Taylorsville, N.C. The company also is planning to open a plant in Union Gap, Wash., later this year.

"We are pleased to have amicably resolved this dispute and will continue to tenaciously protect our intellectual property rights throughout the industry," Paragon President and CEO Mike Baab said in the news release.