U of R sues over 'misappropriated' CO2 technology

The University of Regina is suing two private companies allegingthe firmshave unjustly claimed exclusive rights tocarbon capture technology developed at the institution andare refusing to pay royalties.

According to documents filed in court in Saskatchewan, in 2005 the universitysignedan agreement with Regina-based HTC Purenergy,providing the company with the non-exclusive right to commercialize the university's carbon capture technology. HTC went on to sub-license that technology to another company, Doosan, which is based in South Korea.

In its statement of claim, filed in November,the university notesHTC was just one of several companies with which it hadsimilar agreements and none of them weregiven exclusive rights.

Thelawsuitsays HTC and Doosan improperly claimed exclusive and irrevocable rights to the technology and that has made itimpossible for the university to make other commercialization deals.

None of the allegations contained in the statement of claim have been proven in court.

According to the U of R, the two companies named in its lawsuit acted"with highhanded and callous disregard for the rights of the university" and the school suffered"irreparable harm".

"HTC misuses and misappropriates... confidential information and trade secrets, contrary to the HTC license agreement," the university said in its claim.

The lawsuit suggests the defendants used CO2 technology developed at the university to generate millions of dollars in revenue but neither HTC nor Doosan reportedtheir sales to the university and did not pay expected royalties.

The university did not specify how much money itwants, but the magnitude could be in the millions of dollars.

Carbon capture amajor U of R project

The lawsuit is a significant matter for the university, whichdescribes itself as a world leader in the research and development of technologies used to capture the emission of carbon dioxide from industrial sources.

That work has been done at the International Test Centre for CO2 Capture, located on the university's campus.

It was established in 2003 with $6 million from the federal government in partnership with a number of other agencies including the government of Saskatchewan, the provincial Crown corporation SaskPower and the United States Department of Energy.

Carbon capture and storage research is alsoan oft-mentioned part ofSaskatchewanPremier Brad Wall's environmental strategy. He talks about itin speeches and regularly references it when interviewed about energy issues.

The university, in its statement of claim, says the moves by the defendant firms have taken the technology out of public hands and placed it under the control of private corporations.

HTC denies all wrongdoing

In its statement of defense, filed in February,HTC insists it has done nothing wrong.

The publicly-traded corporation said its agreement with the university "grants exclusive rights to intellectual property developed by the inventors at the Process Systems Engineering Laboratory, Faculty of Engineering, at the university."

The corporationaddressed the issue of royalties by noting thatno projects have been built using the university's technology.

HTC also launched a counterclaim against the university for an unspecified amount of money, alleging the university harmed HTC becausethe U of R "engaged in a relentless course of actions designed to fundamentally alter the terms of the license agreement". HTC claims the U of R is trying toterminate their deal.

The assertions and claims from HTC have also not been tested in court.

In its court filings,HTC alleges the university's actionsled to the company losing outon an opportunity for a $100 million investment from the U.S. Department of Energy. The company also claims the U of Rrefused to renew a leasefor space HTC was using oncampusand thatled to a loss ofmoney and researchers.

Doosan claims mistreatment by U of R

The South Korean company, Doosan, has also filed statements with the court.

In its materials, filed at the beginning of March,Doosan says it has abided by its contract and has done nothing wrong.

Doosan said asub-license agreement with HTC, datedSept. 3, 2008, allows it to use and commercialize the technology development at the university.

The company adds ithasdocumentation,from a University of Reginaofficial, which confirms Doosan enjoysexclusivity on the technology.

The company also points out that,based on the agreement, itspent "tens of millions of dollars in research and administrative expenses involved in efforts to commercialize the CO2 capture technology."

Doosan says despite all that investment ithas yet tomakea sale. There havebeenno royalties, the company says, because the technology "is not yet commercially viable in the form of a project or licensed product".

Doosan also used strong language in its documents to describe theuniversity's actions, claiming the U of R was trying to cancelits deal and was engaged in"underhanded, outrageous and unlawful conduct" and "shows a wanton disregard for Doosan's rights".

Doosan has also filed a counterclaim against the university seeking an unspecified amount of money in damages.

And, just as with the other parties in the case, none ofits allegations have been proven in court.

The legal proceedings are in the early stages and the litigation could go on for a considerable time.