Välinge has terminated its license agreement with the Chinese resilient flooring producer Jiangsu Lanrui New Material Technology Co., Ltd, formerly known as Jiangsu Lansen Integrated Material Technology Co., Ltd (“Lanrui”). The license agreement is terminated due to severe non-compliance with the contractual provisions of the license agreement.
Lanrui has committed several material breaches of the license agreement, among other, Lanrui has sold products produced under the license agreement without labels in breach of the holographic label system, L2C. The general effect of the holographic label system is that products produced under a license from Välinge that leave factories of the licensed partners in question without appropriate labels, are considered unlicensed and infringing products.
Lanrui is accordingly no longer entitled to use any of Välinge’s intellectual property rights. Any subsequent use or sale of unlicensed products supplied by Lanrui could consequently constitute acts of infringement of Välinge’s intellectual property rights covering such products.