Recently you may have received one or more letters from Everseal Mailers Ltd containing various allegations and assertions against Mastermailer. Hopefully the press releases, which we have already circulated to you, will have answered any queries or concerns you may have. However we set out below the main points at issue and some additional information, which you may find helpful. Of course, please do call us if you want to discuss anything further.

Patent infringements:  when these occur they are an issue for the civil courts and normally are dealt with either by an application for a hearing before the UK Intellectual Property Office (‘UKIPO’) or before the Patent County Court or the High Court. It is a slow, time consuming and expensive process, typically costing well into the tens of thousands of pounds, and quite often well into six figures, and running on for as much as a year or more.

UKIPO Opinions: on payment of £ 200 anybody can apply to the UKIPO for an opinion on the issue of validity or infringement of a granted patent. The process is designed to be relatively quick and simple and is based on the exchange of written observations on the matter in dispute. It is intended to help settle actual or potential disputes over invalidity or infringement before recourse to litigation. The opinions are legally non-binding.

IP Crime:  IP Crime is the counterfeiting and piracy of trade marked and copyrighted products and services.  It applies for example to the piracy of DVDs and the counterfeiting of Louis Vuitton handbags and Rolex watches etc and other instances where other peoples’ intellectual property assets are being wilfully exploited.

EVERSEAL MAILERS LTD: Everseal was set up in spring 2009 after Stephen and Claudia Black were dismissed from Mastermailer on the grounds of gross misconduct and after their sons resigned from our employment. Everseal has a paid up capital of  £ 2 and James and Edward Black are named as its two directors.

In the summer of last year Everseal commenced the sales of its tape seal product, which were imported on its behalf by a sister company, Evrite Ltd. It was stated on these tape seal mailers that the product was protected by a patent which turned out not to be true. Evrite did not pay in full its debts to the supplier and Mastermailer took an assignment of that debt last December (the balance owed being some £ 25,000). A petition to wind-up Evrite Ltd is due to be heard in the High Court on Wednesday, 17 March 2010.

Last November Everseal spent £ 400 with the UKIPO to request two opinions. Firstly, did some Mastermailer samples sent to the UKIPO by Everseal infringe the patent held by a Mr Horler and licensed to Everseal? Secondly, does one of Mastermailer’s patents infringe the Horler patent?

On the first issue, the examiner gave an opinion that the Horler patent was infringed by the samples. In reaching this opinion the examiner, who only conducted a ‘desk study’, did not consider the actual pressure at which Mastermailer products achieve a permanent seal. This pressure is central to any actual infringement. Our production seals permanently at pressures above the relevant highest threshold pressure cited in the Horler patent and accordingly we are NOT infringing that patent. So far as we are concerned, that is the end of the matter.

On the second issue, the examiner found that the Mastermailer patent did NOT infringe the Horler patent. In any case, we have commenced legal proceedings to have the Horler patent struck out on the grounds of invalidity.

For reasons best known to them, Everseal chose to make a song and dance about the first finding and to avoid all mention of the second finding, which clearly does not suit their case.

CURRENT POSITION: As you would expect in the circumstances, we have undertaken exhaustive tests to verify that our production does not in fact infringe the Horler patent.

We are pleased to confirm that our production does NOT infringe the Horler patent and that all our customers are at liberty to continue to buy and use our products without fear of repercussions. We would ask you to treat Everseal’s implied threats to you of infringement or of being mixed up in ‘IP Crime’ with disdain.

PLEASE CALL PATRICK ROGERS, commercial director, if you have any further questions or concerns on 0844 2437887.