The dispute centred around a licensing agreement for Quick-Med's MultiStat technology, licensed for over-the-counter anti-aging cosmetics. Engelhard has been manufacturing and distributing cosmetics ingredients using the technology, but the two companies had fallen into dispute over the terms of the agreement and the technology's use as an acne treatment and moisturizer.
According to Quick-Med, the new agreement means that Engelhard, which is a division of the Engelhard Corporation, is contractually bound by a Letter Of Intent until August 2007, an agreement that can be extended for up to 3 years, amending an agreement that was initially made between the two parties back in August 2002.
The agreement gives Engelhard an exclusive license to develop and market the MultiStat technology for over-the-counter anti-aging cosmetics, while also giving the option for the parties to enter a non-exclusive license for the use of over-the-counter acne treatments and skin moisturizers.
Quick-Med says that the agreement substantially reduces the scope of Engelhard's applications for the technologies, allowing it pursue marketing possibilities with other suppliers in different fields of the cosmetics market.
The terms mean that Quick-Med will receive monthly royalty payments of approximately 40 per cent of the net revenue that Engelhard receives from the sale of all products it markets containing MultiStat.
This allows for minimum royalty payments of $1.1m during the next year in addition to a lump payment of $166,500 for the use of certain intellectual property.
In the past 12 months Quick-Med says it has derived an income of approximately $1.2m from its business with Engelhard.
Engelhard is currently distributing anti-aging products using the Company's technology to such firms as Bath and Body Works under the Patricia Wexler M.D. cosmetic skincare product line, and Elizabeth Arden, under the Ceramide Plump Perfect cosmetic skincare product line.