ALEXANDRIA, Va., April 30, 2015 /PRNewswire/ -- Kolon Industries, Inc. ("Kolon"), a South Korean textile company, announced today that it has agreed to resolve both its civil trade secrets dispute with E.I. du Pont de Nemours & Company ("DuPont") in the United States District Court for the Eastern District of Virginia and the related criminal proceeding filed by the United States Attorney's Office for the Eastern District of Virginia and the United States Department of Justice, Criminal Division.
"Kolon is pleased to put these matters behind it and to resolve its dispute with DuPont and the criminal charges filed against it by the United States Attorney's Office for the Eastern District of Virginia and the United States Department of Justice, Criminal Division," said Dong Moon Park, Kolon's President and Chief Executive Officer. "These settlements provide Kolon with the freedom to operate and expand its business operations while ensuring that appropriate protections are in place so as to avoid comparable disputes in the future. Today's agreements put a peaceful and mutually satisfactory end to the litigation. We can now turn our full attention to strengthening Kolon's presence in the marketplace."
The agreement with DuPont allows Kolon to continue manufacturing and selling its Heracron® products, with provisions designed to protect against further litigation based on DuPont's intellectual property relating to para-aramid fiber.
The Plea Agreement, approved by the Court today, resolves the criminal case against Kolon. Kolon pled guilty to a single count of Conspiracy to Convert Trade Secrets related to its para-aramid fiber products. Kolon Corporation, an affiliate company, also is a signatory to the Plea Agreement and will be bound by its terms. The U.S. Government has agreed to dismiss all other criminal charges filed against the Kolon corporate entities, including charges related to the Theft of Trade Secrets and Obstruction of Justice.
Under the parties' agreements, DuPont will receive restitution totaling US$275 million. Also as part of the Plea Agreement, Kolon has agreed to pay a US$85 million fine to the United States. Both payments are to be made over the next five years.
SOURCE Kolon Industries, Inc.