NORCROSS, Ga., May 12, 2015 /PRNewswire/ -- “Today we drove a stake into the ground in our relentless fight against patent trolls we sued the Third most litigious patent troll in America Thermolife International and Ron Kramer” said Jared Wheat, President of Hi-Tech Pharmaceuticals. We aren’t going to take it. We have sued Thermolife and Ron Kramer in federal court in Atlanta, Georgia, where our headquarters is located (see the complaint here). We are asking the court to award Hi-Tech damages for Deceptive Trade Practices, Racketeer Influenced and Corrupt Organization Act (RICO), and to enter a declaratory judgment that Hi-Tech does not infringe Thermolife’s patents. In 2013 alone Thermolife and Kramer filed (117) patent infringement cases and (66) of those patents were licensed from Stanford University. The complaint alleges that Thermolife purchased licenses with respect the Stanford Patents for the sole purpose of using them as a basis upon which to bring fraudulent lawsuits against entities in the dietary supplement industry, including Hi-Tech. “It is surprising to me that Stanford is involved in this type of litigation” said Jared Wheat. The Times Higher Education World University Rankings 2014-2015 list the best global universities Stanford ranks #5.
Hi-Tech Pharmaceuticals, a leading global manufacturer of dietary supplements and OTC Pharmaceuticals sent a message out to Patent trolls that Hi-Tech will not give in to their attempts to “shake down” money from our company. Patent trolls are a serious threat to business and to innovation. Patent trolls brazenly use unethical tactics to force settlements from legitimate businesses that are not willing to fight the case due to extremely high costs associated with patent litigation. At Hi-Tech, we have seen a significant percent spike since 2012 in our legal spend combating patent trolls. We have fought Thermolife and Kramer multiple times in patent cases and we have emerged victorious every single time. To put the scope of the problem into perspective, a Boston University study of patent trolls, conducted in recent years, found that they cost the U.S. economy about $29 billion in 2011, up from $7 billion in 2005. Thermolife has sued the who’s who of dietary supplements in the past several years without one single victory. Bio-Engineered Supplements and Nutrition Inc. (BSN); Hi-Tech Pharmaceuticals Inc.; GNC Corporation; General Nutrition Centers Inc; Ultimate Nutrition; NBTY; Vitamin World; VPX; Infinite Labs LLC; Lecheek LLC; Maximum Human Performance LLC; Muscle Warfare Inc.; Nutrex Research Inc; SNI LLC; Lone Star Distribution, Inc.; All Star Health; S A N Nutrition Group; DNA Sports Nutrition; Suppz Inc.; Lockout Supplements; Supplementwarehouse.com Inc.; TF Supplements; Vitacost.com; iForce Nutrition; Netrition Inc.; DPS Nutrition; Illpumpyouup.com; A1 Supplements Inc.; World Class Nutrition; I-Supplements.com; E-Vitamins; and Vitamin Shoppe Inc.
Recently in a court decision, Techdirt describes the tactics that patent trolls deploy, and used literary references to Shakespeare and Chekov to excoriate the patent troll. It even cited the “Duck Test” if it quacks like a troll, it probably is a troll. A patent troll, also called a patent holding company, a non-practicing entity, or patent assertion entity, is a person or company who enforces patent rights against accused infringers in an attempt to collect licensing fees, but does not manufacture products or supply services based upon the patents in question. In fact, at the filing of many, if not all of these lawsuits, Thermolife was a non-practicing entity or patent assertion entity, not offering any products for sale. Search online for “Thermolife International” You will find that this group’s business is acquiring patents and suing companies. Everybody knows Thermolife is a duck or should we say, a troll. They are basically no longer in the business of buying and selling their Thermolife brand of dietary supplements.
Meanwhile, Thermolife and Ron Kramer wears its designation as a patent assertion entity, or patent troll, as a badge of honor. It makes the laughable claim to be the “truth speaker” and he claims to be a man committed to speaking the truth, the whole truth, and nothing but the truth...whether some insiders like it or not. However, lacking from the “truth speaker” is his telling of his entire colorful history. Just to shed a little light on the subject......In a bid to have Kramer’s probation terminated, Ron Kramer’s lawyer claimed that his client “has worked his little fingers to the bone as an informant and general source of information for the Narcotics Task Force (NTF) on steroid related offenses.” Following his arrest on the new case and while both matters were pending, the defendant agreed to work with NTF in its efforts to infiltrate the local body-building community in regards to the manufacture, sale and/or use of anabolic steroids, growth hormones and other illegal substances,” local district attorney James Fox wrote in an April 2001 filing. “Mr. Kramer commenced his work with NTF purely for reasons of self-preservation -- to avoid being sentenced to state prison.” According to filings by his attorneys, Kramer worked hard to provide the government with insider tips. “Defendant has cooperated not just minimally, but to a super-human extent with the NTF in assisting them to investigate and prosecute steroid related offenses of which they previously had almost no working understanding,” attorney Geoffrey Carr wrote.” In Thermolife’s forum, they try to throw dirt on others in the industry without looking at what is staring back at them in the mirror. In this lawsuit, Hi-Tech will call a “spade a spade” which is ultimately what the “truth speaker”, Ron Kramer and Thermolife have always tried to divert attention from.” says Wheat.
Until Congress reforms the patent laws, companies of all sizes and industries could and likely will find themselves in the crosshairs of a greedy patent troll looking for a quick grab for cash. No company is immune, and, sadly, small companies can’t afford to fight. If they don’t succumb to the troll’s demands by settling, they face certain ruin. If a company is lucky enough to survive, the consumers wind up paying the price the attorney’s fees and settlement costs have to be absorbed by the company, which results in higher prices for the consumers. Hi-Tech’s goal with this lawsuit is to highlight the tactics that Thermolife and Ron Kramer use to divert hard-earned profits and precious capital from American supplement companies. This time, the patent troll will pay us.
The lawsuit also alleges, Thermolife and Kramer tortiously interfered with Hi-Tech’s business relations through improper and wrongful conduct including, but not limited to, the following: (A) Repeatedly filing meritless and fraudulent lawsuits against Hi-Tech in bad faith; (B) Falsely and misleadingly accusing Hi-Tech of infringing upon Thermolife’s patents, both in lawsuits and through correspondence to Hi-Tech’s customers; (c) Defaming the business reputation of Hi-Tech; (D) Threatening to sue Hi-Tech’s customers if they continued to sell certain Hi-Tech products.
The lawsuit further alleges “In furtherance of this scheme, Thermolife caused letters, pleadings, and other matters and things to be deposited with and delivered by the United States Postal Service and interstate couriers to various courts, Hi-Tech, and/or Hi-Tech’s customers in repeated violation, or attempted violation, of 18 U.S.C. § 1341" (mail fraud). In furtherance of the unlawful scheme, Thermolife, Kramer, and their officers, agents, and employees repeatedly transmitted, or caused to be transmitted, writings, signs, signals, pictures and sound communications transmitted in interstate commerce, including but not limited to, numerous interstate telephone calls, facsimile transmissions, email communications, and electronic submissions of documents, in repeated violation, of attempted violation, of 18 U.S.C. § 1343 (wire fraud). The suit further alleges, “Defendants have conspired to conduct and participate in the conduct of the affairs of the enterprise through a pattern of racketeering activity. That conduct constitutes conspiracy to violate Racketeer Influenced and Corrupt Organizations (RICO) 18 U.S.C. Section 1962(c), in violation of 18 U.S.C. Section 1962(d).” Passed the year after The Godfather was published, RICO is part of a 1970 law designed to allows plaintiffs to bring civil lawsuits against organizations whose members allegedly committed crimes.
“At Hi-Tech, we’ve always believed paying off extortionists only encourages more extortion, and there had to be a negative consequence of continuously suing Hi-Tech without just cause. We insisted on seeking a return of our legal fees from Thermolife and Kramer. Hi-Tech believes that forcing a patent troll to pay, no matter what amount, sends the clearest possible message to all abusive patent trolls and their contingency fee lawyers that if they file a frivolous lawsuit against Hi-Tech, they will suffer some consequence, even if it is only making less money or having to do more work than they planned to. We hope that our lawsuit will provide a beacon of hope for real innovators and honest entrepreneurs facing demands from abusive patent trolls. I think Thermolife and Kramer are basically a parasitic tax on the supplement industry. We want to encourage other defendants to create as much friction as possible, rather than feeding the beast with easy settlement checks.” said Jared Wheat.
Hi-Tech is pursuing justice in the matter because it is consistent with our corporate mission of bringing the benefits of dietary supplements and innovative nutraceuticals to our valued customers. And, when defendants settle these frivolous claims, it’s always the customer that ends up paying. We care too much about our loyal customers to subject them to paying these trolls.
Founded in 1998, Thermolife has earned a special brand of hatred in the supplement industry as the ultimate patent troll. Hi-Tech has continued to put up such a strong fight against these type trolls and will not be shaken down. Patent litigation is very expensive and most troll targets settle early just to avoid the cost of defense. According to a 2011 survey by the American Intellectual Property Owners Association, the average cost to defend a patent case is about $1 million when the amount at risk is less than $1 million, about $3 million when $1 million to $25 million is at risk, and about $6 million when over $25 million is at risk. “By fighting back, Hi-Tech has forced Thermolife and Kramer to actually mount a case and establish that it deserves money. That has turned out to be too hard for the troll on multiple occasions.” says Jared Wheat.
To Quote Ron Kramer..... “being served is not a choice sir”
Hi-Tech Pharmaceuticals (https://www.hitechpharma.com/index.htm) is a leading global healthcare supplier that develops, manufactures and distributes over-the-counter (OTC) Pharmaceuticals and dietary supplements. Hi-Tech Pharmaceuticals is one of the world’s leading generics and branded pharmaceutical companies, providing products to customers throughout the world. The company maintains one of the industry’s broadest and highest quality product portfolios, which is regularly bolstered by an innovative and robust product pipeline. Hi-Tech Pharmaceuticals has attained leading positions in key international markets through its wide array of dosage forms and delivery systems, significant manufacturing capacity, global commercial scale and a committed focus on quality and customer service. The company ranks among the top companies in dietary supplements and has among the largest capacity of U.S.-based manufacturers.
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SOURCE Hi-Tech Pharmaceuticals, Inc.
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