Boston, MA 09/22/2014 (wallstreetpr) – Keurig Green Mountain Inc (NASDAQ:GMCR) continues to sell the new single-serve coffee brewer (Keurig 2.0) despite the litigation proceedings.
The U.S. District Judge, Vernon Broderick refused to block Keurig from selling its coffee brewer machine that has a proprietary technology, popularly known as K-cups. The technology prevents other companies to sell their coffee pods.
In contrast, the specialty coffee maker’s rival JBR Inc., does the business on behalf of Rogers Family Co., argues that Keurig Green Mountain Inc (NASDAQ:GMCR) is violating the antitrust law and illegally blocking other companies in making coffee pods. JBR filed the multi-district antitrust litigation suit along with consumer lawsuits.
However, Broderick said that JBR is not clear in their claims that how JBR is likely to experience a loss from the sale of Keurig’s new brewer.
How much Keurig relies on its intellectual property (IP)
The emerging challenges by the competitors over the IP rights on technology become major risk factors for the Company. Keurig Green Mountain Inc (NASDAQ:GMCR) may experience intense competition once the K-cups lose its proprietary rights, and the new technology failed to keep the IP rights in future products.
So, the decision of the district judge pleased the Company and allowed to continue selling its next generation Keurig 2.0 to its customers. The Company believes that the proprietary technology and the latest model will continue to maintain the proprietary rights and provide growth opportunity in a coffee brewer industry.
In addition, a single-serve is in early stage of development, and nearly 80% of the U.S. households are yet to use a single cup. So, an IP rights over single-serve (Keurig 2.0) will create wide opportunities for the Company.
The strong support
The latest engagement such as purchase of major shares (up to 16%) of Keurig Green Mountain Inc (NASDAQ:GMCR) by the beverage giant The Coca-Cola Company (NYSE:KO) will further solidify its position in the industry. The Company anticipates that strategic relationship with Coca-Cola that will improve its growth performance and also strengthen the position in the competitive industry.
