CHICAGO—KGK Synergize filed counterclaims in U.S. District Court, Northern District of Illinois, in a lawsuit filed by SourceOne Global Partners in January 2009; KGK also added a third-party complaint against SourceOne’s CEO and founder, Jesse Lopez. SourceOne’s original filing alleged unfair competition by KGK and sought to establish SourceOne’s Cholesstrinol™ formulas do not infringe on KGK patents and trademarks, and to declare certain KGK patents invalid. In its counterclaims and third-party claims, KGK alleged patent infringement, trademark infringement, unfair competition, breach of contract and deceptive trade practices.
The relationship between the companies dates back to 2003, when SourceOne was awarded exclusive distribution rights to KGK’s ingredient Sytrinol®, a patented blend of tocotrienols and polymethoxylated flavones for cholesterol reduction; SourceOne held the rights through the end of 2008, when KGK selected Proprietary Nutritionals as its distributor. While it is not supplying Sytrinol, SourceOne does offer a full range of heart health ingredients under the Cholesstrinol brand.
In its filing, KGK claimed the Cholesstrinol mark infringes on the Sytrinol trademark and is likely to cause confusion in the marketplace. The breach of contract claims relate to the development and promotion of the Cholesstrinol products as direct competitors to Sytrinol. KGK is seeking injunctions against Lopez and SourceOne from infringing on the Sytrinol patents and trademarks, as well as significant damages.
In response to INSIDER’s request for comment, Lopez commented: “SourceOne filed this lawsuit to clear its name and protect its customers after KGK threatened to sue our customers and us for patent and trademark infringement. ... Our products do not infringe the KGK patent and trademarks. In light of KGK’s prior threats, however, we fully expected KGK to file counterclaims in the case. We are convinced that we will prevail in the case and that KGK’s claims lack merit.”
Additionally, Keith Grady of Polsinelli Shughart PC, the law firm representing SourceOne, added, “We have filed a motion with the Court to dismiss the claims against Mr. Lopez because we believe they lack legal merit and were filed to exert pressure on Mr. Lopez. We are confident that we will convince the Court or the jury that all of KGK’s allegations lack merit.”
