Hello Team,
Some of you may have been forwarded an email from XanGo's Chairman,
Gary Hollister dated May 18, 2005. The only thing his email does is
reconfirm XanGo filed its lawsuit not for legal reasons, but because it
wants to divert at all costs attention away from the quality of our
competing products. Despite Mr. Hollister's desire, after all the smoke
clears, we urge all of you to focus on the issue of quality wellness
products. Nevertheless, hopefully for the last time, I will correct a
few of Mr. Hollister's misinformed comments. For anyone who takes the
time to review the record relating to XanGo's patent, the New Vision
and Morinda litigation will easily identify XanGo's and its Chairman's
misstatements. To put you at ease, though, I will respond to a few of
their more ridiculous assertions.
XanGo's Patent Reexamination
XanGo is
simpleminded in trying to convince its distributors that an appeal
board will overturn the final findings of a United States Patent Office
committee of three senior patent examiners that all 81 of the claimed
inventions in XanGo's patent are invalid. Eighty one claimed inventions
down the drain — that is almost unheard of. Not a single claimed
invention survived, even after XanGo had two of its high-priced patent
lawyers confer with the Examiner on two separate occasions to convince
him that there was an invention somewhere in the XanGo patent. They
gave their best argument and completely failed. As our patent attorney
commented to me after he read the Patent Office final decision, "this
patent is on life support."
XanGo in its
simplemindedness still claims they were the creator of the mangosteen
beverage category. The independent committee of United States
Government expert patent examiners didn't think so after they poured
over XanGo's filings, and several times listened to XanGo's patent
attorneys' arguments and evidence.
One of the reasons this patent was even granted was because all of the
'prior art' was not disclosed or discovered during the application
process. Since the reexamination, the USPTO has been provided with
sufficient documentation that proves XanGo didn't 'invent' mixing
mangosteen pericarp and fruit juices together. In fact, we discovered a
company in Japan was doing it back in 1997.
Rather than rely upon my or XanGo's interpretation of what has
transpired, I would again urge you to go to the official independent
office government Patent Application Information Retrieval System at http://portal.uspto.gov/external/portal/pauir.
After this site comes up, enter application No 90/007,178 and click on
the Image File Wrapper tab, which will reveal an index of the document
history. Afterwards, click on the Reexam Final Rejection – 4/21/2005.
By no means was I using my own 'spin' as I've been accused. I gave
everyone the link to read the words of the USPTO themselves.
New Vision's "Mangosteen" Drink
Our
label is in compliance with strict FDA guidelines. Mr. Hollister
doesn't want us to compare our product with his, because there isn't
any comparison. We beat XanGo in every category except for apple and
grape juice content. When it comes to ORAC Value, Xanthone Content and
Vitamin Content they're not even close.
XanGo's
Chairman selectively quotes from some of our legal pleadings to
conclude that we do not have pericarp in the product. He fails to note
that we specifically stated in the same legal pleadings that we use a
pericarp extract. Now why would he leave that out? This is one of the
main reasons that the independent lab test indicates that we have a
superior mangosteen product. As for him implying that our product
doesn't contain mangosteen, aloe vera or pericarp extract, nothing is
further from the truth. In fact, if our product didn't contain the
above items, why in the world would XanGo spend a couple of million to
sue New Vision?
I did notice Mr. Hollister didn't approach my comment about our
product's xanthone content equaling 14 bottles of XanGo, nor is XanGo
saying that New Vision or Vemma will no longer be able to sell a
mangosteen product.
New Vision's Business
This
one surprised me. Unlike Mr. Hollister, I was in the courtroom three
weeks ago with my legal team. XanGo's Chairman wrote that New Vision's
attorney stated in open court that "Mr. Boreyko had to funnel $3
million of his own money into the business last year." This is just a
blatant falsehood. Our attorneys never stated this. In response to
false assertions by XanGo's attorneys that I had drained monies out of
New Vision, my counsel did confirm I have invested substantial monies
over the past ten years into the holding company, international
expansion and the manufacturing company. This is what owners do when
they believe in their businesses. Maybe when XanGo steps up and opens
its own manufacturing plant, they'll have to invest in their business
as well.
XanGo's Chairman also stated that the most
recent Dunn & Bradstreet reported that New Vision lost 90 percent
of its sales. This is another blatant falsehood. Dunn & Bradstreet
has never, ever reported on our sales. I just double checked and I
invite anyone else to do so. Mr. Hollister needs to check his sources
before spreading such libelous falsehoods and rumors.
New Vision's Commentary on the Morinda Litigation
This
isn't my fight, nor would I want to be XanGo facing down Morinda based
on what I've learned about this case. XanGo seems content to keep the
pleadings in that case sealed so the general public and most
importantly, their distributors cannot see for themselves what is
occurring. Time will tell and the clock is ticking. Like I said, this
will be interesting to watch.
Nothing in my May 16,
2005 press release or this email has been a lie or 'spin' as I've been
accused. Just do a little due diligence and you'll discover the truth.
And, think about the answer to this question: based on the number of
blatant falsehoods in Mr. Hollister's recent statement to his
distributors, what other issues has he been less than truthful about
when addressing XanGo distributors? In fact, I read in a XanGo
distributor's email that I was supposed to have approached Wild Flavor
to reformulate my product; nothing could be farther from the truth.
Where in the world do they get this stuff from? Here's the bottom
line…our companies just need to compete fairly and HONESTLY, based on
product, compensation plans and team support. I've been doing that for
ten years now. That's the American way and that's what makes this
industry so great. I am not trying to tear any company down. Remember,
I never asked for a lawsuit. XanGo brought this fight to me and those
who know me know I'll stand up for what I believe is right and when
necessary, I will fight.
With the United States Patent Office's recent ruling, my focus is set
on helping my Members build New Vision and Vemma, two of the most
respected wellness companies in the industry. That all starts with
providing the finest product and that attracts the best leaders.
Instead of engaging in a verbal sparring match with XanGo or any of its
ranting leaders, we are going to continue to focus our efforts on
marketing our superior mangosteen products.
New Vision has a ten year track record of success, honesty and top
quality products backed by independent lab results. Given the Morinda
litigation, its bungled patent strategy and risky business practices,
we will see if XanGo lasts another year, let alone ten years like New
Vision. In this business, stranger things have happened. Less than one
percent of the companies in this industry make it past ten years. I do
not intend to continue to counter or participate in XanGo's smoke and
mirror diversions. I recommend that you, and any competitors, focus on
the quality of competing products. That is what we have and will
continue to do.
Successfully,
BK Boreyko
President & CEO
New Vision & Vemma
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