Sabinsa Collects $150K in ForsLean® Patent Dispute

EAST WINDSOR, N.J.Creative Compounds paid Sabinsa Corp. all profits it made through trademark infringement on Sabinsas ForsLean® as part of an intellectual property (IP) case that lasted three years and reached the U.S. Supreme Court. Sabinsa received $150,000 in disgorged profits from Creative Compounds.

Sabinsa alleged that there was a likelihood of confusion between Sabinsas registered trademark ForsLean and Creative Compounds unregistered mark Forsthin, both of which refer to Coleus forskohlii extract. In July 2010, the U.S. Court of Appeals overturned a trial court decision that had found no such confusion.  Not only did the appellate court reverse the trial court, but also it ordered judgment to be entered in favor of Sabinsa without a new trial. 

The U.S. District Court of New Jersey then awarded Sabinsa damages, ordering Creative Compounds profits from its infringement on the ForsLean trademark to be paid to Sabinsa.

On Jan. 10, 2011, the U.S. Supreme Court denied Creative Compounds request to review the July 2010 decision of the Third Circuit Court in Sabinsas favor, after which the Federal Court in New Jersey denied Creative Compounds motion to alter or amend the judgment and denied the company a new trial.

The outcome of this case should make it clear to any company considering trademark infringement that it can become a very expensive gamble, and ultimately not worth the risk," said James H. Hulme, Esquire of Arent Fox LLP in Washington, who represented Sabinsa in this matter. "I am glad that, at the end of the day, the courts recognized both the strength and value of Sabinsas trademark and the need for the infringer to disgorge its profit to Sabinsa."

Sabinsa founder Muhammed Majeed, Ph.D., said We will always protect our intellectual property, not only so we can continue researching new products and to protect the investment our customers make when they choose our products, but because it is simply the right thing to do."