December 13, 2007 / 7:08 PM / 11 years ago

UPDATE 1-Arquest sues Kimberly-Clark in patent dispute

(Adds Kimberly-Clark comment)

NEW YORK, Dec 13 (Reuters) - Arquest Inc has sued a Kimberly-Clark Corp (KMB.N) unit in a dispute over patents used in Arquest disposable diapers and training pants, according to a lawsuit filed late Wednesday.

Privately held Arquest said it was told by Kimberly-Clark in July that some Arquest products, including Toys “R” Us’ Especially for Baby diapers, infringed Kimberly-Clark patents, according to the complaint filed in U.S. District Court in Manhattan.

The two sides were unable to resolve their dispute despite several months of negotiations, Arquest said, prompting it to sue.

“Arquest has a reasonable apprehension that K-C will file suit against Arquest,” it said in the complaint. “K-C continues to allege that the accused diapers and training pants infringe the patents-in-suit.”

A representative for Kimberly-Clark, which makes Huggies diapers and Kleenex tissues, said Thursday it had not been served with the lawsuit yet.

“We are disappointed that Arquest has taken this action as we have been in active discussions with them to reach a resolution,” Kimberly-Clark spokesman Dave Dickson said. “We do plan to continue our discussions to resolve the issues.”

Arquest, based in New Jersey, wants the court to rule that it does not infringe the patents in question. (Reporting by Paritosh Bansal; Editing by Gerald E. McCormick/Jeffrey Benkoe)

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