Israeli Court to Hear Tech Dispute Against German Giant
An Israeli court will hear a lawsuit filed by Israeli agritech companies alleging that a major German corporation stole their technology for identifying chicken egg traits before hatching. The Tel Aviv District Court ruled that Israel is the appropriate venue for the case, citing the "public interest" in clarifying the dispute involving an Israeli agricultural initiative based on technology developed by Israeli professors and patented by university commercialization companies.
The decision came after one of the defendants, Dr. James McKay, former technology director for the German conglomerate EW Group and its director in Israel, challenged the Israeli court's jurisdiction. McKay argued the case was time-barred, lacked a cause of action against him, and that most connections to the dispute were outside Israel, making it an "inconvenient forum."
However, Judge Tamar S. Porer rejected McKay's arguments, stating that "in every relevant aspect, the majority of connections, reasonable expectations, and public considerations, the scale tips in favor of the Israeli forum." The lawsuit, brought by Israeli companies Innovate Technologies and EggDetect for 20 million shekels, accuses EW Group and its subsidiaries of entering a strategic partnership, learning the technology's secrets, and then orchestrating a plan to steal and commercialize it. The Israeli firms claim EW Group used its directors within EggDetect as "Trojan horses" to access proprietary information.
The technology, developed from research by Professors Eyal Ben-Dor of Tel Aviv University and Israel Rosenbaum of the Hebrew University, aims to identify egg fertility and chick gender before hatching using remote sensing (spectrometry). This could solve the costly issue of incubating infertile eggs and the ethical problem of culling billions of male chicks annually worldwide.
According to the lawsuit, EW Group invested $2.5 million in EggDetect in 2012 for a 49% stake. After the project showed up to 98% success in trials, EW Group allegedly withdrew funding, blocked a grant, and prevented a partnership with a Dutch machinery manufacturer, leading to EggDetect's dissolution. Subsequently, EW Group allegedly established AAT, which began marketing the CHEGGY device, utilizing the same technology and generating tens of millions of euros annually. AAT reportedly acquired the Dutch company that EW Group had previously refused to partner with.
McKay's legal team stated that the ruling was procedural and did not address the merits of the case, asserting that the defendants have strong defenses. They claim EW Group's decision in 2014 not to invest further in EggDetect was a legitimate business decision after the technology proved unviable. They also deny any use of EggDetect's technology or trade secrets, asserting EW Group used its own independently held rights and that the patent relied upon by the plaintiffs has since been canceled.
