Zhishin, Nutratech at Odds over AdvantraZ®

Zhishin, Nutratech at Odds over AdvantraZ^®

FAIRFIELD, N.J.--Nutratech Inc. filed suit against Zhishin LLC, based in Burlington, Vt., over Zhishin's attempt to terminate the exclusive license it granted Nutratech for the distribution and marketing of AdvantraZ^®. The companies have worked together since 1997, when Zhishin granted the exclusive license for its trademarked Citrus aurantium material, AdvantraZ, under the patent it held (No. 6,224,973). Zhishin assigned the trademark to Nutratech last year.

According to Dennis Jones, president of Zhishin, the company served notice to Nutratech on June 25 that gave 45 days to correct certain defects in operations or the license would be terminated. Michael Coblintz, attorney for Zhishin, said the defects were not corrected by Aug. 10 and Nutratech was served with notice of termination. "Zhishin felt that the company wasn't living up to the contract," Coblintz said. In the notice of termination, Zhishin asked to conduct an audit of Nutratech's operations, but Coblintz said no date has been scheduled for such an audit, which could have lead to re-establishment of the license agreement. He added that Zhishin planned to petition the U.S. Patent and Trademark Office to delete the AdvantraZ trademark and to reassign the rights for the new name Citauramin.

Bob Green, vice president of Nutratech, said his company felt the termination notice was not valid, and therefore decided to instigate litigation. Nutratech's attorney, Paul Rowe, stated that Nutratech filed suit in Essex County Superior Court on Wednesday, Aug. 29. "Zhishin is seeking to terminate our exclusive license improperly and we want them enjoined from doing that," Rowe said. He added that during litigation, he expects that Nutratech will remain the exclusive licensee and distributor of AdvantraZ, and that Nutratech planned to seek an injunction to restrain Zhishin from selling the product directly, from saying that the agreement was terminated or from making new agreements.

For more details, contact Green at Nutratech at (973) 882-7773, or Jones at Zhishin at (802) 862-9242.