2004 is Another Successful Year At M&A
Building upon
its many successes in 2003,
McGovern & Associates continues
to grow its reputation as a state-of-the-art, full
service, boutique corporate law firm that specializes in
advising and representing high potential companies that have
proprietary know-how or intellectual property rights, from
before their creation through their public offering or
acquisition and beyond. We have a long and successful track
record of assisting both high-tech and non-tech companies in
getting started and funded, in addition to leveraging our global
contacts to facilitate and realize the growth and exit
strategies of the companies we represent. Our domestic and
international client base remains particularly attracted to our
accessibility, cost consciousness and efficiency in producing
high quality work product.
McGovern &
Associates has experienced sizeable growth in our firm’s
corporate, litigation and IP enforcement practice areas. In the
skin care industry we devised, implemented and currently
coordinate the worldwide licensing program for TriStrata
Technology, Inc., a wholly owned subsidiary of NeoStrata,
Inc., a company owned by the two inventors and holders of
the worldwide patents for Alpha Hydroxy Acids for use in skin
care. The program already has resulted in mid-eight-figure
revenues for TriStrata in just the first few years
following the program’s launch. AHA's are incorporated in
approximately 40% of all skin-care products worldwide. Current
licensees include, among others, Johnson & Johnson, L'Oreal,
Chanel,
Avon, Pond's,
Beiersdorf
and Neoteric.
In November 2003, McGovern & Associates litigated successfully
on behalf of TriStrata Technology, Inc., which won its patent
infringement suit against Valeant Pharmaceuticals International,
formerly ICN Pharmaceuticals, when the jury in the United States
District Court in Wilmington, Delaware found that seven claims
of the two patents at issue were willfully infringed. Click
here for an announcement of the verdict:
Press Release.
On April 12, 2004, the United States District Court rejected
Valeant’s motion seeking to overturn the jury verdict and for a
new trial. The Court also issued a permanent injunction
prohibiting Valeant from the manufacture, sale and marketing of
products covered by the infringed patents, effectively removing
Valeant from the marketplace for such products. Click here for
the Press Release.
Our longtime
work in advising software and computer technology companies has
included the firm’s legal representation and business advisory
consulting to major players in this industry. McGovern &
Associates is a coordinator of the worldwide patent
enforcement program for VLIW Technologies LLC, a
company that owns the exclusive worldwide rights to license a
suite of very long instruction word (VLIW) patents for use in
the latest generation of microprocessors and software
compilers.
We are counsel
to VLIW Technologies in its lawsuit against Hewlett-Packard
and ST Microelectronics (STM) to enforce VLIW's
intellectual property rights relating to copyrighted compiler
technology which is critical
to the use of the VLIW paradigm.
On December 19, 2003, the Delaware Supreme Court reinstated VLIW
Technology’s breach of contract and trade secrets suit against
Hewlett-Packard and STM.
Press Release.
McGovern &
Associates also has achieved successful outcomes as defense
counsel in patent infringement litigation. We represented
Eurasia
Concepts, Inc., d/b/a Bio Ionic, Inc. in defending
claims brought against Bio Ionic by Conair Corporation in
connection with a Conair patent claiming a method of permanently
restructuring curled or frizzy hair. This case represents an
example of our work in intellectual property litigation defense,
which practice we have built with the same dedication and
success as our IP litigation practice as plaintiffs' counsel.
Our firm
also successfully represented Bruce S. Brickman & Associates,
Inc.
d/b/a Brickman Associates in Brickman's action against
International Paper Company on several grounds, including
breach of contract, over the sale of real property known as
Treetops for $15 million. This representation resulted in a
favorable settlement for our client, the terms of which are
confidential.
Yes, we even
concentrate our efforts on the rapidly expanding water and air
filter industry. As one of three founders and owners of KX
Industries, which is the worldwide leader in the
manufacturing of technical components used in water and air
filters, McGovern Capital continues to advise KX Industries on a
broad range of corporate, intellectual property and other
strategic matters. KXI has over 40 issued patents and
created and supplied the initial “end of tap” filters for both
P&G/PUR and Clorox/Brita (currently a $190 million
market). In 1996, KXI invented and supplied the first
refrigerator water filters, which currently is a $200
million market.
KXI has developed a
revolutionary nanotech microbiological
water filter (MB) that incorporates anti-bacterial
and anti-viral agents into its structure. The MB
technology is patented and is the basis for a full range
of water filter products that effectively produce sterile,
chemically-purified water from virtually any water source
(e.g. river water in
Africa). Further, the nanotech MB is nationally certified to
U.S. EPA and California Department of Health Services
standards.
MB’s
effectiveness and low cost permit a full range of products to be
manufactured, supplied and suitable to both the developed world
and the developing countries markets. This ground-breaking
technology is expected to significantly reduce water-borne
diseases (WBD), which claim approximately 2.2 million deaths in
the world annually. WBD also cause about 4 billion cases of GI
disease each year with annual direct economic losses estimated
by the United Nations to exceed $70 billion.McGovern Capital is working with KXI to penetrate
the $2.5 billion worldwide retail water filter market.
The firm has
represented leading players in the food and beverage industry.
McGovern & Associates served as general outside counsel to
South Beach Beverage Co. (SoBe), a fast emerging "New Age"
beverage producer known for the SoBe "lizard.” Our
representation included 4-plus rounds of financing, management
incentive compensation, tax and legal structuring, and various
strategic matters, as well as in the sale of SoBe to Pepsi
for $370 million. On the venture capital front, McGovern
Capital was one of three founders of SoBe. The ability of our
professionals to consistently add value through competitive
intelligence, tax expertise and complex strategic advisory
services was a vital component of SoBe’s unique growth rate,
which was unprecedented in the industry.
We are
continuing to expand our international practice substantially.
Among the firm’s broad range of international representations is
our service as counsel to an early-stage, cutting-edge
inter-dealer broker poised to replicate the successful Western
inter-dealer broker model in
Asia.
McGovern &
Associates served as counsel to Ultima Enterprises, an
international company with operations in
China
and the United States focused on the production, purchase,
sourcing, storing, distribution, promotion, advertisement and
sale of bedding products, in Ultima’s sale to Springs
Industries, a manufacturer and distributor of textile
products.
Other
Notable Legal Representations
McGovern &
Associates also has been at the forefront of precedent-setting
cases, and our firm’s attorneys continue to achieve great
success across the broad spectrum of litigation matters that we
handle on a global basis. The following cases are among
McGovern & Associates’ recent litigation representations:
-
Litigated successfully a shareholder/breach of
contract action against a leading
Connecticut law
firm resulting in a multi-million dollar recovery (Swan v.
Greenwich Partners, Inc.).
-
Lead counsel in a shareholder litigation in
Delaware Chancery Court in a case of first impression
respecting the obligation of a Delaware corporation to hold an
annual meeting of shareholders regardless of the fact that the
corporation has elected directors by majority consent in lieu
of an annual meeting (Hoschett v. TSI International
Software, Inc., Del. Ch. Ct.). After successfully
litigating the issue, the
Delaware
legislature overturned the decision by amending the Delaware
corporate code.
-
Lead counsel in AAA arbitration in
Miami,
Florida
respecting claims under contract for reconstruction of a world
renowned Caribbean resort, Cap Jaluca, located in
Anguilla, BWI (James Cross, Inc. v. Maundays Bay Management
Limited, et. al.).
-
Lead counsel in various intellectual property
cases in
Connecticut and Delaware involving patent infringement,
ownership issues and trade secret claims.
We look forward to
continuing to work with our clients in achieving tremendous
success on their legal matters and in their business endeavors.
