Mane holds two US patents for MMS, which cover its use as a cooling additive in foods and beverages. It has held the patents – numbers 5,725,865 and 5,843,466 – since 1998.
IFF sold products containing MMS under the name Cooler 1 as part of its CoolTek range, and the ingredient was also used as part of other flavoring formulations. The company also sells another flavor compound under the CoolTek umbrella called Cooler 2, or monomenthyl glutarate, which contains MMS.
“IFF acknowledges that Mane's patents are valid and enforceable, and will honor those patents,” the company said in a statement issued on Thursday.
Under the settlement agreement, IFF will make a royalty payment of $40m to France-based Mane, and has stopped making or selling its Cooler 1 products. It has also said it will ensure that the MMS content of its Cooler 2 products is agreed to by both parties.
Mane sells MMS under the brand name Physcool and holds foreign counterpart patents in many international markets.
Mane reported sales of €480m (about $613m at current rates) for the full year 2010, while IFF reported sales of $2.6bn during the same period.
The case was V. Mane Fils S.A. v. Int'l Flavors & Fragrances, Inc., filed in the US District Court for the District of New Jersey in May 2006.