Tate & Lyle has lost the first stage of its patents case to protect its Splenda brand.

Sugar manufacturer Tate & Lyle has lost its court case against Chinese manufacturers and importers it claimed were violating patents that protect its Splenda brand in the US.

The ruling means the companies are now free to sell their own sucralose sweetener products in the country, potentially damaging sales of Tate & Lyle’s key Splenda brand.

The decision is a huge blow to the company, which issued two profit warnings last year following disappointing sales of Splenda.

On announcing it had lost the case, Tate & Lyle shares plummeted yesterday (23 September) – falling by 56p to 360p.

According to Robert Gibber, General Counsel of Tate & Lyle, the company plans to appeal against the decision. He said: “This is a complex case involving a huge amount of in-depth technical analysis and debate between scientific experts.

“We would not have proceeded with an ITC case unless we believed we had adequate evidence to demonstrate that our patents are being infringed. We intend to petition for an appeal of the decision by the full Commission.”

The ruling follows a trial held earlier in 2008 and will now be put to a six-person Commission which will make a final decision by January 2009.

Tate & Lyle first filed its claim in April 2007, accusing three Chinese manufacturers and 18 importers and distributors of infringing its Splenda patents. 

By Natasha Piscitelli