In May 2007, in an effort to prevent SISEL International (SISEL) from recruiting Neways distributors and from otherwise fairly competing in Japan, Neways filed a lawsuit against SISEL and some of its Japanese distributors. Yesterday, the United States District Court in Utah granted SISEL’s motion to dismiss Neways’ claims of misappropriation of trade secrets against the Japanese distributors.

Neways has maintained that the bonus recaps mailed to these Japanese distributors were trade secrets that had been misused to recruit distributors to SISEL. SISEL filed a motion for summary judgment on this issue arguing that Neways had no evidence to support this accusation. At the hearing, the district court judge ruled that Neways had failed to show any evidence to support the claim of misuse of trade secret information by the Japanese distributors. Other claims remain outstanding.

“We at SISEL are gratified the court has seen that Neways had no facts to support their claim of trade secret violations by our Japanese distributors” said Tom Mower, Jr., Chief Executive Officer of SISEL. “We believe the other claims filed by Neways will meet a similar fate. We have always viewed the Neways lawsuit as an attempt to use the U.S. legal system to cut off SISEL’s ability to compete fairly with Neways in Japan.” He continued, “We encourage our distributors everywhere to comply with the policies of our business and to honor the contractual commitments they have with other companies.”

SISEL views the court’s ruling as another victory in the litigation initiated by Neways. Tom Mower, Jr., noted again that SISEL’s tremendous success will continue. “This will be true,” he emphasized, “especially when the people of Japan look past Neways’ litigation tactics and actually consider SISEL’s products and programs. SISEL’s success in Japan and worldwide will only continue due to its superior personal care and nutritional products, strong compensation plan and its outstanding family of distributors.”

SISEL Contact:
Phil Hadfield
SISEL International
(801) 423-5050
info@siselinternational.com