SourceOne Files Suit Against KGK

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CHICAGO—SourceOne Global Partners filed a lawsuit in U.S. District Court, Northern District of Illinois, against London, Ontario-based KGK Synergize, alleging unfair competition associated with reported threats of lawsuits against SourceOne and its customers. The lawsuit seeks to establish the Cholesstrinol formulas do not infringe on KGK patents and trademarks, and further to declare certain KGK patents invalid.

SourceOne had the exclusive distribution rights to KGK’s ingredient Sytrinol®, a patented blend of tocotrienols and polymethoxylated flavones for cholesterol reduction, through the end of 2008; Proprietary Nutritionals is now distributing the ingredient. While it is not supplying Sytrinol, SourceOne does offer a full range of heart health ingredients under the Cholesstrinol™ brand.

Jesse Lopez, CEO and president of SourceOne, said in a release: “Due to KGK’s continued threats and meritless charges against SourceOne, our customers and global partners, we are left with no choice but to seek legal remedies. We have invested heavily in our relationships and a key component is being willing to stand shoulder to shoulder with our customers and global partners defending our rights to do business in an honest and ethical fashion.”

In response to INSIDER’s call for comment, KGK issued a statement: “The lawsuit filed by SourceOne Global Partners is simply their effort to sidetrack our termination of their license and our letter pointedly telling them to cease and desist their infringement. KGK will enforce its proprietary rights, including those associated with Sytrinol®, whether it does so in a direct suit or by virtue of counterclaims in a declaratory judgment action brought by an infringer. It is important to our industry that we require commodity trading companies to respect our contracts, patents and trademarks.”

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