Nikken is a Japanese company which has been involved in the business of selling therapeutic magnets for 20 years in many countries, and for the past 10 years in the United States. Amway got into the magnet market in May, 1999, with its "Magna Bloc" line.

In a totally bizarre move, in June, 1999 -- one month after entering the market -- Amway proceeded to file lawsuits against Nikken for -- of all things -- impinging on Amway's patents! Nikken promptly countersued, calling Amway's action "bizarre." According to a statement released by Nikken on June 25, 1999:

"Nikken has been selling its magnetic technology products in nearly 20 countries around the world for more than 20 years, whereas Amway entered the market with its magnets only a few weeks ago in May. 'If there are patent infringement issues,' says Nikken Executive Vice President Kendall Cho, 'one would expect the newcomer to be the offender.'

Nikken, which distributes its products through a multi-level marketing system, claims that many former Amway members are joining Nikken. According to Larry Proffit, Nikken Senior Vice President:

"People like Dave Johnson who was making a few dollars a month with Amway . . . is making several hundred thousand dollars a month with Nikken. I can understand Amway being frustrated ... but frivolous litigation won't solve their trouble."

Nikken's suit includes a Complaint for Unfair Competition, in which Amway is named as defendant.

Now, in a press release issued July 17, 2000, Nikken has announced that they have filed a petition to have Amway's patents for therapeutic magnets invalidated, claiming that the Amway patent "is not based on an original invention but was anticipated by prior scientific art," which was not disclosed properly to the patent examiner. According to Nikken:

"had the prior art been disclosed, the patent would not have been issued. Therefore, Nikken requests that the court invalidate the patent upon which the Amway magnetic products are based."

The case will be heard in September in Nashville.

Press Release

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This page updated Jul-22-00