German Trade Court Decides in Sabinsa’s Favor in Lawsuit Against German Based Competitor for Theft of Proprietary Information

May 10, 2017


Sabinsa Corporation manufactures and markets phytonutrients, Ayurvedic herbal extracts and specialty fine chemicals for nutritional, pharmaceutical and food industries. Sabinsa has carved a niche for itself by its extensive research support for its customers and products, and the scientific credentials of its key technical staff. Founded in 1988 by Muhammed Majeed, Ph.D., Sabinsa is a company dedicated to the principles of tradition, innovation and research. Sabinsa's efforts have begun to earn the company vast recognition, in addition to growing sales.

Langen, Germany (May 10, 2017) – The Trade Court in Frankfurt, Germany has decided in favor of Sabinsa Europe GmbH in a lawsuit against its German based competitor (Defendant) for theft of proprietary customer lists, technical information and other data. The court found that a former Sabinsa employee had access to and stole Sabinsa Europe’s data and used that information for the personal benefit of himself as well as the German based competitor.  The court concluded that the only reason for hiring the former employee of Sabinsa by the German based competitor was for the hard disk with the business and trade secrets.

The court has ordered the competitor to cease and desist from using business and trade secrets belonging to Sabinsa, specifically lists of clients, price information and analysis certificates provided to the competitor by the former employee of Sabinsa. They must destroy the information in their possession, and never again hire a Sabinsa employee with the intention of gaining access to trade secrets. Should this happen again the defendant has to pay a fine of up to 250,000.00 EUR or face imprisonment of up to six months. The competitor must also pay Sabinsa compensation for damages, as well as court costs. The competitor’s lawyers have informed us that the competitor shall not challenge the judgment but accept it.

German law allows for prosecution if a former or current employee with access to business and trade secrets shares them with unauthorized parties for the purpose of competition and/or self interest with an intention to cause damage in case of such blatantly unethical business practices.

"It was clear from witness testimony that this theft of Sabinsa’s confidential information was utilized in an attempt to exploit our trade secrets and damage our business," said Dr. Muhammed Majeed, Founder & Group Chairman of Sami – Sabinsa Group of Companies.

About Sabinsa Corporation

Sabinsa Logo Since 1988

Sabinsa's mission is to provide alternative and complementary natural products for human nutrition and well-being. Over the past 29 years, Sabinsa has brought to market more than 100 standardized botanical extracts, and privately funded clinical studies in conjunction with prestigious institutions in support of these products. With more than 100 full-time scientists conducting ongoing research in India and the United States, Sabinsa and parent company Sami Labs Ltd. continue to develop, patent and manufacture phytonutrients for the world market, with ingredients that are both Halal and Kosher. For more information, visit www.sabinsa.com.