[Edaily Reporter NA EUN-KYUNG ] Precision Biosensor Inc.(335810)Precision Biosensor Inc. and SD Biosensor(137310)(SD Biosensor) are locked in a dispute over a patent applied to veterinary diagnostic equipment. Precision Biosensor Inc. announced that it had successfully defended its rights in a patent invalidation trial and signaled its intention to actively enforce those rights. On the other hand, SD Biosensor stated that while it would not appeal the ruling, its “Vcheck C10” product does not infringe on the patent in question and therefore its manufacturing and sales will not be affected.

“Enforcement of Rights” vs. “No Infringement”… Further Legal Battle Expected

According to industry sources on the 7th, the Korean Intellectual Property Trial and Appeal Board (KIPTAB) issued a ruling on the 29th of last month in the patent invalidation trial filed by SD Biosensor against Precision Biosensor Inc. regarding the “Optical Detection Device and Method for Correcting Measurement Errors” patent, partially dismissing and partially rejecting the claim. This comes approximately one year and four months after the trial was filed on May 30 of last year.

The patent in question covers technology that corrects measurement errors occurring during the analysis of blood components using light. The analyzer calculates the concentration of each component by measuring the degree of light absorption resulting from the reaction between the sample and the reagent. The key to this technology lies in simultaneously utilizing a “primary wavelength” light source—which reads the reaction of the analyte—and a “secondary wavelength” light source—which corrects for errors—to enhance the accuracy of the measurement signal. It goes beyond simply converting signals into concentrations; it reduces the error in the signals used for those calculations. Simply put, it is a technology that helps calculate more accurately the actual levels of glucose, cholesterol, and other substances in the blood. By minimizing the tendency for test results to be higher or lower than actual values due to errors arising during light measurement, it provides veterinarians with more reliable results for assessing an animal’s health status.

Precision Biosensor Inc. explained that this technology is a core patent applied to the “Exdia PT10V,” a clinical chemistry analyzer for animals. Precision Biosensor Inc., which holds approximately 350 patents, maintains that this ruling has upheld its rights to the core technology underpinning test accuracy.

The product at the center of the dispute is the V-Check C10, manufactured by SD Biosensor and sold by BioNote(377740)under contract. A source in the diagnostics industry suggested that the invalidation trial may have been filed due to concerns about potential patent infringement during the product’s development and manufacturing process, and predicted that the upholding of the patent could affect future sales.

SD Biosensor refuted this. A company official stated, “This ruling concerns the validity of the patent in question and does not constitute a determination of whether the V-Check C10 infringes on that patent,” adding, “Based on a re-examination conducted according to the scope of the patent rights after amendment, we still determine that the V-Check C10 does not fall within the scope of the patent rights.”

The fact that the patent has been upheld and whether a specific product infringes on that patent are separate issues. The current point of contention between the two companies is whether the V-Check C10 falls within the scope of technology protected by the patent. An SD Biosensor official stated, “After comprehensively reviewing the details of the decision, we do not plan to pursue any further appeal procedures.” However, given that Precision Biosensor Inc. has signaled its intention to actively enforce its patent rights, it is highly likely that the dispute over whether the product infringes the patent will continue even after this decision.

Beyond Equipment to Reagent Sales… The Battle for the Animal Diagnostics Market

Both products are clinical chemistry diagnostic devices used in veterinary clinics to analyze blood components and assess liver and kidney function or pre-surgical health status. They operate by inserting dedicated reagent cartridges into the analyzer, ensuring a continued demand for consumables even after the equipment is deployed.

Precision Biosensor Inc. began its business in earnest by launching a clinical chemistry analyzer in 2020 and completing a cartridge production facility in 2021. The Exdeer PT10V was introduced to the market as a veterinary product in 2021. At the time of its launch, the device was capable of simultaneously testing up to 17 parameters using 70 microliters (μL) of serum or plasma, with users selecting cartridges based on the specific testing requirements. Subsequently, additional test parameters were added, and in May of last year, the company received domestic approval for the liver function test reagent “Liver Plus 12V.”

Competing with this is the V-Check C10, a veterinary biochemistry diagnostic device launched by BioNote in the second half of last year. Like the Exdeer PT10V, it analyzes blood components using dedicated reagent cartridges. It positions its ability to test up to four samples simultaneously—depending on the device configuration—as a key differentiator, allowing tests for multiple animals to be processed at once.

Although individual sales figures for each company’s respective products have not been disclosed, growth in the veterinary diagnostics business and expansion of product lines continue. BioNote’s revenue from its veterinary division last year was approximately 74.6 billion won, a 12.4% increase from the previous year (approximately 66.4 billion won). At Precision Biosensor Inc. as well, the clinical chemistry product line—which combines human and veterinary applications—has established itself as a core business, accounting for 60% of consolidated revenue last year.

The on-site testing market for veterinary clinics, which these two products target, already includes competitors such as iA, Inc.’s “Catalyst One” and Zoetis’s “Vetscan VS2.” Since this is a business model where revenue is sustained through repeat purchases of dedicated reagents and cartridges once the analyzers are deployed, expanding equipment supply also serves to secure a foundation for future consumables sales. Analysts view this patent dispute as an extension of the competition between Precision Biosensor Inc.—which is seeking to protect its existing business—and SD Biosensor and BioNote, which are aiming to expand their presence in the biochemical diagnostic equipment market.

However, SD Biosensor maintains that this ruling will have no impact on the manufacture and sale of V-Check C10 or on its future business operations. An SD Biosensor official stated, “We are not currently engaged in any discussions with Precision Biosensor Inc. regarding a separate agreement or a patent license agreement.”

Regarding the company’s response following this ruling, a Precision Biosensor Inc. official remarked, “The patents we hold are rights that must be protected as intellectual property,” adding, “As the patent holder, we plan to actively exercise our rights.”