Courtaulds and Lenzing settle differences over fibre

Courtaulds and Lenzing have finally settled their differences in their long-running patent dispute over the cellulose-based fibre, lyocell. The companies are to cross-license all their lyocell-related patents to each other on a royalty-free basis.

The deal gives each company total freedom to manufacture and sell lyocell in any territory in the world without reference to the other. However, the companies will not collaborate on technical or commercial matters. 'We are very pleased to have reached an amicable settlement of our differences,' said Courtaulds fibres director David Williamson and his Lenzing management board member Leo Fermuller in a joint statement. 'With this dispute behind us we can each now concentrate all our energies on developing the worldwide market for this exciting new fibre.'

Sold by Courtaulds as Tencel, lyocell is a soft, silky, but very strong, fibre which can be woven into a fabric which looks like denim and feels like silk. The vagaries of fashion have not been kind leading to lower-than-expected sales but major chainstores in the UK and Europe are now cottoning onto the fabric, and sales are strong in the Far East.

Lyocell is made from wood pulp, and the production involves a solvent-spinning process where the spindle must be kept between extremely precise limits. This was the core of the dispute between the two companies. Courtaulds began manufacturing the fibre in 1992, and has production plants in the UK and US. Lenzing came to the market later, with its first commercial plant opening in Austria last July; it has less than a quarter of Courtaulds' production capacity.