Issues in dispute include (in part) patent infringement, the scope of Shredlage’s intellectual property as it relates to forage processors and “similar equipment which contain components which are designed and manufactured using the intellectual property,” the scope of licensed products, the parties’ obligations relating to warranty and the amount of royalty fees due on the licensed product.
The shredlage idea was initiated by Ross Dale from Oskaloosa, Iowa, who knew a dairyman who had inadvertently processed corn silage that had been long-cut and shredded lengthwise rather than just chopped. The dairyman also found the silage worked well for his cows.
Dale (RSDALE LLC) spoke to Roger Olson of Baldwin, Wisconsin, who discussed the idea with his father, Loren Olsen. Loren subsequently built a prototype and approached Bob Scherer with Scherer Corrugating and Machine Inc. (who has manufactured forage processors for Claas forage harvesters since 2002). Since 2007, Scherer Corrugating’s affiliate, Scherer Design Engineering, has designed and marketed forage processors. In 2010, Roger approached Scherer Design to help with the design and development of a roll for use with crop processing to produce the shredded silage.
According to the complaint, on June 19, 2012, Scherer Design and Olson’s company (Shredlage) entered into a contract license agreement to manufacture Shredlage branded rolls (under a pending patent application) and a processor utilizing the roller under Shredlage trademark. A patent was issued July 9, 2013, for the roller used with the crop processor.
During the license agreement term, a dispute arose as to the scope of intellectual property owned by each party and which kinds of equipment are associated with royalty payments. Also at issue are modifications or improvements to the original design. Because newer forage harvesters have increased horsepower and torque, the original design has undergone modification and improvement to accommodate the increased force. A portion of the ongoing dispute also relates to respective responsibilities of the parties related to product liability insurance and warranty work.
There has been some concern and confusion in the forage industry as to whether the lawsuit would affect availability of the processors. In a letter from Scherer Design Engineering to dealers, customers and long-time friends on April 1, 2015, it states Scherer Design Engineering “is still in a non-exclusive licensing agreement with Shredlage LLC,” which allows them to manufacture and sell Shredlage branded products, including the kernel processors and Loren Cut style rollers. It also states the company has Shredlage branded replacement rollers available and will continue to warrant and provide technical support and dealer support for any processor manufactured by the company.
The letter states, “We will also continue to promote and market the Shredlage branded processor to fit the 491/492/493 machine. Scherer Design Engineering will continue to market the Loren Cut style replacement roller for the NH FR, Krone Big X, JD 7000 series standard body and JD 7000 series wide body.” FG
