Smuggler Marine removes references to Sealegs technology fro   28 Sep 2016

Wednesday 28 September 2016 04:44 PM

Smuggler Marine removes references to Sealegs technology from website

By Jonathan Underhill

Sept. 28 (BusinessDesk) - Smuggler Marine, an Auckland-based boatbuilder, has removed references to Sealegs Corp amphibious boat technology from its website ahead of an application for a High Court injunction next month over the alleged infringement of Sealeg's intellectual property.

At the time Sealegs announced it was seeking an injunction against Orion Marine, Smuggler Marine and some ex-Sealegs employees on Sept. 9, Smuggler was advertising its Strata 770 as being "teamed up with Sealegs technology" but pictures have been taken down, with only a passing reference to the model on a link page.

Smuggler managing director David Pringle wasn't immediately available to comment but Sealegs chief executive David McKee Wright noted that the rival firm had taken down references to what he called "obviously a copy" of Sealegs' seven-part system. McKee Wright added that it was "disappointing that the copy was made by a bunch of ex-employees".

Sealegs's amphibious boat technology was previously licensed by Smuggler.

The NBR reported this month that Sealegs unsuccessfully tried to get an urgent hearing, arguing that Smuggler had planned to launch the model at the Auckland Boat Show that started today.

Sealegs is scheduled to hold its annual shareholders' meeting in Auckland on Friday. The company turned profitable in its latest year, eking out full-year earnings of $507,576 in the year ended March 31, from a loss of $2.4 million a year earlier. Sales rose 7 percent to $18.6 million and its gross margin widened to 28 percent from 19 percent.

Still, Sealegs sold fewer vessels at 98, down from 101 in 2015. Of those, 14 were original equipment manufacturer (OEM) hulls fitted with Sealegs technology to be used by another branded boat builder, compared to one in 2015, while the company also sold 13 'amphibious enablement kits' fitted to existing boats, up from eight a year earlier.

Shares in Sealegs last traded at 8 cents and have fallen 27 percent this year.

(BusinessDesk)

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