We’ve been extremely quiet about the Bodybuilding.com vs. Jim Stoppani lawsuit, which was later amended to include Bodybuilding.com’s naming of GNC for $100+ million in damages!
Although Mike’s early video about the situation (prior to GNC being added) was well-received, once we saw the settlement damage numbers go over eight figures, it was time to get some serious help.
Calling in the big guns
In order to get help explaining this case, we’ve gotten in touch with a licensed IP attorney who has agreed to join Mike in an upcoming YouTube Interview. And trust us when we say that this interview is going to contain a couple of bombshells, including one monumental discovery that we completely missed.
Why this has everyone’s attention
IP attorneys normally deal with trademarks and patents, but it’s uncommon for a trademark case to be tied to real damages — and that’s what we’d see if Bodybuilding.com were to win. This is what our assisting attorney finds interesting – normally the damages sought are not as cut-and-dry as they would be with this case.
But let us make this very clear right now: A Bodybuilding.com win is far from definite, despite what’s been suggested by various armchair lawyers so far.
Further, industry insiders are telling us that it’s absolutely unprecedented to see two different companies operating the same brand at different stores. We’re truly in uncharted territory between Bodybuilding and GNC. In fact, this would likely be an unprecedented situation in nearly any industry!
So in order to get you back into the flow of this suit, let’s whet your appetite with some fantastic information from the case:
Are these damage numbers legitimate?
When Bodybuilding.com added GNC to the suit for an excess of $100 million in damages, many thought that this was an exaggeration… perhaps just legal hyperbole.
As it turns out… these numbers are for real:
Bodybuilding.com’s JYM Revenues
Court documents have revealed how much is at stake here. Read the following select passages from three different sworn affidavits written by Bodybuilding.com employees:
Over 2.78 million units sold
“During the course of the parties Development Agreement, from May 2013 until May 2016, Bodybuilding.com has sold over 2.78 million units of JYM nutritional supplements through its retail website. Since the Development Agreement expired on May 17, 2016, Bodybuilding.com has sold over 564,000 units of JYM nutritional supplements, through Sep. 27, 2016.”
— Michael Fillmore, Senior Business Intelligence Analyst at Bodybuilding.com [emphasis ours]
Click here to download the entire PDF.
Revenues of $94.95 million
“Over the life of the parties’ Development Agreement, from the time Bodybuilding.com introduced the JYM line into commerce on July 19, 2013, until expiration of the Development Agreement on May 17, 2016, Bodybuilding.com’ gross sales (revenue actually received by Bodybuilding.com from customers after discounts) for JYM products was approximately $94.95 million.”
— Chris Olsen, Chief Financial Officer at Bodybuilding.com [emphasis ours]
Click here to download the entire PDF.
Annual Profit of $20.2 million
“From May of 2015 until May of 2016, the final year of the parties’ Development Agreement, Bodybuilding.com realized approximately $20.2 million in gross profits from sale of JYM-branded products.” — Chris Olsen, Chief Financial Officer at Bodybuilding.com [emphasis ours]
Click here to download the entire PDF (this is a different affidavit than the above one).
A case worth fighting
So there it is. Nearly $100 million in revenue.
We don’t need to explain how enormous these numbers are. JYM was an unprecedented success beyond anyone’s expectations, and is clearly worth fighting for.
Meanwhile, anyone who’s gone to a GNC store recently or has seen their website must have realized that this was a monstrous launch. In fact, JYM is still on the GNC homepage as we write this. As mentioned before, all chips are on the table, so the numbers above are no joke – they’re more serious than ever.
So if Bodybuilding.com were to win (which isn’t at all guaranteed), there would indeed be real damages to pay, and the numbers are definitely over our armchair-lawyer pay grade. Backup had to be called in.
Stay tuned and subscribe to our YouTube.
Now you know why we’ve been so quiet while securing additional IP knowledge. Tens if not hundreds of millions of dollars are at stake here, and it’s time to bring in the big guns.
So while these behemoths get ready to rumble in the courtroom, you can get ready to meet our man shortly, because he’s got some bombs to drop. Subscribe to our YouTube channel now and keep your eyes on this blog — next post is a can’t miss.