Animal feed producer sues distributor on counterfeit claims
The speciality feed maker, based in California, claims VBC Peptide Inc, also based in California, has been developing counterfeit feed in China and also selling product in counterfeit Vitech packaging. It also states the practice was occurring while the two companies negotiated a distribution deal in 2014.
Vitech said it has lost more than $2m in sales as a result of the counterfeit actions. It is suing Peptide for fraud and to establish that the distribution deal is void.
The allegations come as a result of Vitech discovering there was a discrepancy in the sales figures. It found that sales to Peptide had dropped yet sales of Vitech products in China were unchanged. When queried, Vitech was told there was excess product in storage.