Paengaroa based bee product business Comvita is being instructed to pay court costs of up to £400,000 (NZ$835,000) to Brightwake Plc.

An interim payment of £287,000 will be paid by the end of February 2011 with details of the balance to be decided at a future court hearing.

Comvita will take a provision of costs for the full amount in this financial year.

This payment is in relation to a case brought before the courts relating to Comvita's complaint about a Brightwake product that it says breaches a patent.

Comvita is applying to the UK Court of Appeal, based on its legal advice that confirms Comvita's view that the original Court ruling is flawed.

The cost to Comvita of this appeal is expected to be less than £100,000.

A stay on revocation of Comvita's patent has been granted by the UK courts until an appeal (if granted) is heard.

Comvita backed product success

Comvita's global licensee for Medihoney specialist wound care products, Derma Sciences Inc, is announcing positive results of a clinical trial for new wound healing drug, DSC127.

The trial results show that DSC127 is up to three times more likely to heal diabetic foot ulcers than conventional treatment.

Comvita has a 13 per cent ownership (11.6 per cent fully diluted for all warrants and options on issue) of Derma Sciences.

Derma Sciences' share price has more than doubled in the lead up to and since the announcement last Friday.

This has had a material impact on the value of Comvita's strategic shareholding in Derma Sciences.