The legal dispute between two of Europe’s leading private-label diaper manufacturers, Ontex Group NV and Drylock Technologies, is approaching a critical stage as a €100 million damages case heads to a Munich courtroom this April.

The dispute centers on technical innovations in ultra-lightweight diaper materials. What began as a standard patent infringement case has evolved into a massive financial liability for Ontex, following a series of dramatic legal reversals.

The alleged damage of €100 million is based on the following chain of events:

1. Düsseldorf Court Victory (2024): Ontex initially won a patent infringement case in Düsseldorf against Drylock regarding ultra-light diaper materials. This ruling effectively prohibited Drylock from selling those specific products in the German market.
2. The 2024 Letters: Following this court confirmation, Ontex sent formal letters to its customers/retailers on July 5, 2024, informing them of the patent infringement and the court's decision.
3. Market Exclusion: As a result of the ruling and the subsequent communication to the market, Drylock faced a period of exclusion from the German market, which they claim resulted in massive lost revenue and reputational harm.

4. The Reversal (2025): On March 24, 2025, the European Patent Office (EPO) overturned the Ontex patent on formal grounds. This decision effectively invalidated the legal basis for the original infringement ruling and the subsequent market exclusion of Drylock's products.

Drylock’s Munich lawsuit, filed in June 2025, contends that since the patent was ultimately invalidated, Ontex's prior enforcement—specifically the 2024 letters and the market exclusion—was legally unjustified. The company is seeking compensation for losses incurred during the period in which it was unable to compete in the German diaper segment.

As outlined in Ontex’s 2025 Annual Report (published March 17, 2026), the financial stakes are substantial:

• Total Claim: Drylock is seeking monetary damages exceeding €100 million.
• Interest: The claim includes 9% annual interest accruing from July 29, 2025, the date the lawsuit was served.

In its annual report, Ontex addressed the litigation, stating that the damages sought are “highly speculative and largely unsubstantiated,” and emphasized that its position is supported by economic expert analysis. The company further noted that it has a strong defense on both procedural and substantive grounds and intends to contest the claims vigorously. At this stage, Ontex does not expect the case to have a material adverse effect on its financial position or operations.

The oral hearing is scheduled for April 23, 2026, in Munich, marking a key moment in this high-value dispute within the European hygiene products sector.