STATEMENT ON EMIRATES TEAM NEW ZEALAND AND NORTH SAILS ACTION

Emirates Team New Zealand have been given no choice but to defend its valid patent, intellectual property, and a number of factually inaccurate accusations, so has filed its response to North Sails US lawsuit seeking an immediate dismissal.

The Team is disappointed to be forced to defend such fabricated claims in their lawsuit which follows a North Sails breach of contract with Emirates Team New Zealand, including a breach of confidentiality and our IP with other America’s Cup competitors, which were already subject to arbitration proceedings in New Zealand when North Sails filed its US lawsuit. The US lawsuit is a simple and baseless attempt to distract from the real issues of breach.

Fundamental to both the motion to dismiss the US case and the New Zealand Arbitration case is North Sails own acknowledgment contractually in the sail supply agreements for both the 37th America’s Cup and 38th America’s Cup that all Emirates Team New Zealand IP (including patents) in its sails and sail designs is exclusively the Team's. These clauses were negotiated and agreed to by both North Sails and Emirates Team New Zealand after the AC36 campaign during which North Sails had been aware of the elastic luff sail design concept IP and patent application for close to 2 years prior. Until their recent legal action, they have not raised ownership concerns or disputed that Emirates Team New Zealand was the owner and inventor of the Elastic Luff concept or the US Patent, including in their unsuccessful Post Grant review.

Emirates Team New Zealand, has a clear legal and moral right to enforce their rights but remains disappointed by North Sails recent actions and hopes common sense will prevail.