Smiles all round at GEN-RBC arbitration

By Phil Boeyen, ShareChat Business News Editor

Friday 31st August 2001

Both Genesis (NZSE: GEN) and Rubicon (NZSE: RBC) say they are happy with an arbitration decision released today relating to future royalty rights and jointly owned intellectual property.

Genesis says the decision confirms previously agreed sharing of any royalties arising from future applications of jointly owned intellectual property and also confirms the rights to develop forestry and non-forestry applications.

The biotech company had previously arranged the agreement with Fletcher Forests but this was handed on to Rubicon following the separation of the Fletcher letter stocks.

GEN boss Dr Jim Watson says the decision is very positive and sets clear guidelines for determining future revenue sharing.

He says it also clarifies the sole rights of Genesis to utilise the joint venture intellectual property for non-forestry applications, particularly in the agricultural and horticultural areas.

Genesis has research projects with various commercial collaborators in these areas.

Rubicon, which owns just under 3% of Genesis, also describes the outcome as very positive.

Chief executive, Luke Moriarty, says the award confirms the rights of Rubicon to receive royalties from both forest and non-forest products developed from that intellectual property.

"The arbitration sets clear guidelines for both companies to move forward in a manner that Rubicon finds very acceptable."

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