KUALA LUMPUR (March 5): Fortified food and dietary supplement maker OB Holdings Bhd (KL:OBHB) said the group's intellectual property (IP) infringement dispute with a client has been brought before a court in the Australian state of Victoria.

The client, Nature One Dairy (Hong Kong) Ltd, is suing OB Holdings' wholly owned unit, Orient Biotech Sdn Bhd, claiming damages, and an account of profits or equitable compensation, the group said in a bourse filing on Wednesday.  

The suit comes after Nature One Dairy issued a dispute notice to Orient Biotech in October 2024 over an alleged breach in a purchase and supply agreement between the pair.

The purported breach pertained to Orient Biotech allegedly infringing Nature One Dairy’s intellectual property rights. The allegation stems from Orient Biotech’s production of a milk powder product for a new customer, which Nature One Dairy claimed uses formulations, recipes and ingredients identical to its own.

Via the dispute notice, Nature One Dairy requested Orient Biotech to cease manufacturing the relevant product and provide information on dealings with the new customer. Orient Biotech denied the allegations asserting its ingredients were generic and commonly available in the market.

On Wednesday, OB Holdings said the group is unable to ascertain the financial and operational impact of the suit as no specific amount demanded was stated.

Nonetheless, the group said it would defend itself against Nature One Dairy’s claims on the basis that the latter’s loss of sales and reputation are not attributable to the group as the relevant product differs from Nature One Dairy’s products.

“The company will engage solicitors in Melbourne, Victoria, to file an appearance in defence of the proceeding and will make further announcements in the event of any material developments regarding this matter,” it added.

Shares in OB Holdings ended one sen or 5.88% lower at 16 sen, valuing the group at RM62.85 million.

OB Holdings listed on the ACE Market of Bursa Malaysia on Oct 29 last year. Compared to its initial public offering price of 24 sen, the counter is down 33.3%.

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