IMAGENETIX VS MONAVIE = $2.75 BILLION
LIST OF THOSE SUED BELOW
Rod Cook Ur Editors Notes: Intellectual Property (IP) law is pretty tight. I have worked with some top IP lawyers (as Expert Witness) out of New York. They tell me if the charges made by Imagenetix can be proved, that it is just how much Monavie (and distributors?) pay in a settlement out of court. Why? IF THE IMAGENETIX LAWSUIT IS 80% CORRECT, going to court would be crazy for Monavie (see IP law below).
I am not happy that the lawsuit included Monavie distributors. This is terrible for the industry and the rights of the MLM – Network Marketing distributors. Will MonaVie pull a rabbit out of their hat? Let’s hope so, for these poor folks!
This is an Intellectual Property lawsuit filed by Imagenetix, manufacturer of a "long chain esterified fatty acid" trademarked as Celadrin.
http://www.imagenetix.net/ Note: Yahoo stock tracking for Imagenetix is on the front page of the website. Ed. note: Full disclosure I bought Imagenetix stock yesterday.
The lawsuit states, in early 2005 MonaVie purchased Celadrin from Imagenetix via two brokers for Imagenetix. The Celadrin sales brokers notified MonaVie that if MonaVie wanted to use Celadrin in their juices, then Monavie could get a sub-license to use the Celadrin trademark for use in the MonaVie drink.
MonaVie supposedly added Celadrin to their product for a brief time in 2005 (your editor saw it on the label), but DID NOT purchase any more Celadrin through Imagenetix sales brokers or obtain any kind of license to use the Celadrin trademark.
The Imagenetix lawsuit claims 10,000 web pages existed with Monavie distributors advertising MonaVie and touting Celadrin's benefits. Included were the new folks on the Monavie block and even a page on MonaVie’s website at time of the filing of the lawsuit. The lawsuit by Imagenetix says “There is video footage from February this year of MonaVie's top distributor, Brig Hart, describing Celadrin as an ingredient in the MonaVie drink and promoting Celadrin's health benefits.”
The lawsuit says that Imagenetix took it a step further. Imagenetix had labs analyze MonaVie liquid and for a few months it did contain Celadrin. They claim each bottle had so little Celadrin, it was ineffective.
US Trademark Intellectual Property law is strict. Unless Imagenetix missed a hidden broker contract with, their only real defense will be to claim that responsibility lies with each of the individual distributors. We are waiting for a response to this lawsuit from Monavie HQ. Will Monavie bite the dust? Doubt it! If the lawsuit information is correct, at this point it will be a matter of legal negotiation for a settlement out of court. If they go to Federal Court, it might end up with Imagenetix owning MonaVie.
LIST OF DISTRIBUTORS IN LAWSUIT TOO
WOW! THE LARGEST MLM LAWSUIT EVER FILED! 2.75 BILLION DOLLARS!
Editors Note: As soon as this hit our inbox from a reporter we tried to call our contact at Monavie. At the time of this posting, we are waiting for a Monavie press release. What is different about this lawsuit is that it is filed against (1) Monavie-Monarch, the company and (2)most alarming..... against top distributors to include 1-10,000. Now let's understand that lawsuits occur with successful MLM companies on a regular basis. The big difference with this lawsuit is the scope of trademark violation goes down to leaders 10,000 levels deep in the binary and it is the biggest amount EVER for a lawsuit in the MLM world!
Imagenetix Inc v. Monavie LLC et al
Plaintiff: Imagenetix Inc
Defendant: Monavie LLC, Mona Vie Inc, Monarch Health Sciences, Inc, Dallin Larsen, Henry Marsh, Randy Larsen, Amy Cowley, John Brigham Hart, Lita Hart, Steven Merritt, Gina Merritt, Corbin Roush, Holly Roush, Charles Kalb, Deborah Kalb, Ronald Prudhomme, Brenda Prudhomme, Edward Aristizabal, Shelly Aristizabal, Brian Cattano, Jill Cattano, Matthew Curtis, Kimberly Curtis, Tina Dupart, Todd Hartog, Angelique Hartog, Rodney Howard-Browne, Adonica Howard-Browne, Mickey Karshner, Victoria Karshner, Jason Lyons, Carrie Lyons, Angel Matos, Grayson Maule, Ken Porter, Robert Robinson, Linda Robinson, Devon Robinson, Todd Smith, Stephanie Smith, Frank Soucinek, Jr, Cynthia Soucinek, Brian Thayer, Jacqueline Thayer, Bo Vanpelt, Carrie Vanpelt, Black Diamond University Inc, Darrell Utterbach, Tracy Utterbach, Joseph Licciardi, Patrice Licciardi, Andre Walton, Penny Walton, James Bellacera, Denise Bellacera, Kelly Bangert, Jillian Bangert, Eric M Gutman, Rebekah Gutman and Does 1 - 10,000, inclusive
Case Number: 
3:2008cv00814
Filed: May 5, 2008
Court: California Southern District Court
Office: San Diego Office [ Court Info ]
County: San Diego
Presiding Judge: Judge Janis L. Sammartino
Referring Judge: Magistrate Judge Louisa S Porter
Nature of Suit: Intellectual Property - Trademark
Cause: 15:1114 Trademark Infringement
Jurisdiction: Federal Question
Jury Demanded By: Plaintiff
Amount Demanded: $2,750,000,000.00
FIRST MONAVIE FILES SUIT AGAINST AMWAY
For trying to enforce non - compete agreements against ex - Amway distributors who left Amway - Quixtar (some years ago) and are joining Monavie. Amway - Alitcor - Quixtar must have felt a little weak on that because they came back with:
AMWAY QUIXTAR SUES MONAVIE FOR NUTRITIONAL CLAIMS
Is The Game "Within" To Make Up For An Older MLM Pay Plan?"
Rod Cook your editor = Never a dull day when something entirely new like this lawsuit comes up. You would expect it from the FDA - FTC, but from another MLM company? We know that competition in the MLM arena is heating up between MLM - Network Marketing companies fighting for sales volume but this is a new step! An MLM company (Amway) taking the role of the FDA, claiming unfair competetion!
P.s. IS THIS THE REAL REASON? SEE MY EDITORIAL BELOW - IS IT ABOUT PAY PLANS?
Press ReleaseSource: Quixtar North America
Quixtar Files Suit Against MonaVie To Protect Consumers, Halt Unfair Competition
Tuesday March 18, 8:09 pm ET
SALT LAKE CITY, March 18 /PRNewswire/ -- Quixtar North America has filed a multi-count Complaint against MonaVie (Mona Vie, Inc. and MonaVie LLC), and several MonaVie distributors for unfair competition in federal court in Salt Lake City. The Complaint alleges that MonaVie competes unfairly by making false claims about its products. Utah-based MonaVie sells juice blend products featuring acai berries through a network of distributors. Quixtar, a sister company to Amway Corporation, sells nutritional products through its Independent Business Owners (IBOs) that directly compete with MonaVie. Some of Quixtar's products also contain acai berries.
Quixtar's filing is intended to protect consumers from false health claims as well as ensure its IBOs are not damaged from unfair competition stemming from false claims. Quixtar, a respected member of the Direct Selling Association, also hopes to protect other direct selling companies from MonaVie's deceptive tactics.
The complaint contains numerous examples of false health claims made by MonaVie and its distributors. For example, the complaint includes transcripts of MonaVie meetings with speeches by "doctors" who falsely claim that MonaVie can cure cancer, stop aging at a rapid pace, improve vision, and eliminate pain. The "doctors" describe "dosages" of MonaVie to falsely imply that it is a medicine. In addition, MonaVie distributors have attempted to raid Quixtar IBO organizations using these false claims.
Editorial: IS IT MORE ABOUT MLM PAY PLANS?
Editors Note: This is interesting because the lawsuit is focused on health claims. However, what is not said is that Mona Vie's "overclocked" Binary plan currently pays out approximately 30% more that the Amway - Quixtar old stairstep. The new generations of 50% + payout target hot Unilevels (Xango, Life Force, Freelife, + others) and Binaries (Isagenix, USANA etc.) are simpler and payout more quickly than the old Stairstep Breakaways. How does the WatchDog know this? When Amway Asia was a public company, they gave the amount paid in commissions vs. income from sales. We still have those old documents saved on DVDs from years back. Now, in fairness to Amway Quixtar, if their distributors focused on selling just the Amway - Quixtar line of NUTRILITE nutritional products and soap, the earnings payout of the old StairStep will go up because of the higher commissionable volume rate on these consumable items. See link below: THE WALMART SYNDROME!
The complaint explains that while MonaVie has only been around only a few years, its founder was associated with a now defunct company which enjoyed tremendous growth by marketing a "superfood" derived from a sea plant. The Food and Drug Administration (FDA) took action against the company for unsubstantiated therapeutic claims for mitigating various diseases. The company eventually stopped selling the product and its remaining inventory was destroyed under FDA supervision.
about Amway and Quixtar
Based in Ada, Mich., Amway is one of the leaders in the US$80 billion global direct-selling industry. Established in 1959 as a seller of household cleaners, Amway expanded and diversified over the years and today sees its sales led by Nutrilite vitamin and mineral supplements and ARTISTRY(TM) skin care and cosmetics. Global sales for Amway and affiliated companies exceeded $7.1 billion in fiscal 2007. In North America, the Amway Global opportunity operates as Quixtar North America. Amway has helped millions of people lead better lives through consumer products, business opportunities and generous sharing with the One by One campaign for children.
________________________________________
Source: Quixtar North America
Editors note: Here is the article I wrote several years ago about the decline of the Stair Step Breakaway
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