Gain Technologies Inc. is suing rival Cinpres Gas Injection Ltd. in U.S. District Court in Detroit, alleging a Cinpress official falsely claimed Cinpres has rights to license the Gain-patented overflow process for gas-assisted molding.
The lawsuit, filed June 13, comes after continued sniping between Gain of Sterling Heights, Mich., and Cinpres of Nantwich, England. Earlier this year Gain lured away a German distributor for Cinpres. Next, Dennis Paul, who was Gain's general manager, left Gain to become sales and marketing manager at Cinpres' U.S. office in Ann Arbor, Mich.
The Gain lawsuit charges Cinpres with unfair competition, based on an Oct. 6, 2000, letter from Steve Jordan, then managing director of Cinpres. The letter, in part, says a ``licensee of Cinpres has the legal right to use overflow well technology as licensed by Cinpres together with gas injection units supplied by Cinpres.''
Jordan's letter goes on to say Cinpres can offer licensees protection to use overflow wells ``as licensed by Cinpres Ltd.''
Gain holds a patent for the spillover process, through Melea Ltd., although Cinpres contends that it already was using its own version of that method several years before the Melea patents.
In a news release announcing the lawsuit, Gain contends that Cinpres ``turned to a strategy of actively misrepresenting ... their claim of rights to the spillover process to unfairly compete with Gain.''
Jordan now is a consultant to Cinpres.
Terry Pearson, chairman of Cinpres Gas Injection, said June 21 that Cinpres had not yet been served with court papers in the United States or England. ``When we receive it, we shall respond appropriately and firmly,'' he said. He said Cinpres has never licensed overflow technology from Gain.
He added: ``It is surprising that it's taken them a year and a half to two years to issue this suit.''
The lawsuit was filed by Plastic Molded Technologies Inc., doing business as Gain Technologies.