From Deseret News archives:
2 firms spar on health products
At issue are two Utah companies at odds with each other over who owns the recipe for a particular liquid health supplement.
In court documents filed this month, Neways International of Springville is claiming its former supplier, Advantage Marketing, sold Neways formula for Maximol to competitor Synergy Worldwide, a wholly owned subsidiary of Provo-based Nature's Sunshine, another health supplement company.
On Wednesday, Advantage filed a counterclaim accusing Neways of doing the same thing. Advantage claims in its filing that it is the owner of rights to produce the liquid health supplement.
Currently, both Neways and Synergy are selling the product in the Japanese market.
Advantage does admit that the two formulas "are identical but denies that (Neways) has any right to either formula," according to the newly filed court documents.
Because Advantage developed the recipe, the company contends it owns the rights to the recipe, not Neways.
"The "wish list" provided to (Advantage) was not confidential information," states the Advantage court filing. According to Advantage, the ingredients were "generally known in the industry."
In the filing, Advantage claims Neways took the recipe when it decided to produce the supplement on its own. Following the Neways decision, Advantage looked for other product customers. Advantage and Synergy then struck a deal to produce the SyneMax supplement.
Dickson Burton, an attorney with the law firm of TraskBritt P.C., which represents Advantage, said Neways' claims are "without merit."
He said Advantage intends to defend itself vigorously against "all the claims that have been made by Neways."
Neways spokesman Ben Jolley said that the trade secrets belong to Neways and were used in another product sold to Synergy.
Maximol is one of Neways' top products with sales amounting to "millions of dollars per year" in Japan, Jolly said.
Jolley said millions of dollars per month are at stake in Japan. In order not to lose their market share, Neways filed claims of false advertising, trade infringement and unfair competition.
Now the company is waiting for the court processes to continue and a court date to be set.
Officials at Advantage marketing could not be reached for comment. Officials at Synergy Worldwide declined to comment on the issue.
Contributing: Laura Warner
E-mail: jburke@desnews.com
