INC WINS PATENT DETERMINATION, 24 Feb 2006

In December 2003 INC advised the automotive industry of a dispute in the marketplace over the IP rights to INC's "Thermoformable Acoustic Sheet" material. This product is used for the manufacture of components such as Underbonnet (Hood) and Firewall (Dash Outer) Insulators. Competitors were suggesting that our innovation patent was invalid, but we were able to advise that, despite objections by others at that time, our patent had been certified as valid by IP Australia on 24 October 2003 with a priority date of July 2000.

In early 2004, Plexicor (via parent MCK Pacific Pty Ltd), The Smith Family and Foss Manufacturing Company formally took combined action to oppose the patent registration to again challenge the validity of our patent.

The matter was subject to a hearing and we note that IP Australia has found fully in INC's favour in their 24Feb06 Decision. The details of that Decision are as follows:

Patent Application : No. 2003100331 in the name of I.N.C. Corporation Pty Ltd

Title : A Thermoformable Acoustic Sheet

Action : Opposition by The Smith Family, MCK Pacific Pty Ltd (Plexicor) and Foss Manufacturing Company under s101M of the Patents Act 1990

Decision : Issued 24 February 2006

Abstract : The invention defined by claims 1-5 is novel and innovative. The opposition is unsuccessful on all grounds.

INC is currently evaluating the commercial ramifications of the Decision as it relates to parts supplied (or to be supplied) by others.