In 2005, a jury found that Mary Kay Inc. infringed on the patent rights of TriStrata Technology Inc. (a subsidiary of Neostrata) in regards to their alpha-hydroyacid (AHA) technology. TriStrata was awarded over $26 million, and Mary Kay appealed. The appeal was upheld by a Federal judge last week. Now that interest is tacked on, Mary Kay owes $41 million.
Several patents for wrinkle creams were at issue in the case. TriStrata holds more than 125 patents related to alpha hydroxy acids and other skin care technologies. It licenses its patents to 40 companies in the cosmetics and pharmaceutical industries, including Avon, L’Oreal, Elizabeth Arden Inc., Johnson & Johnson and Chanel. Mary Kay was one of several companies sued for infringing on these patents.