Copyright Salt Lake City Deseret News
A lawsuit alleging trade secret violations between two Utah protein bar companies has been dismissed. Built Bars, LLC, is an American Fork-based protein bar company that has gained popularity throughout the state, particularly in Provo, as it has sponsored BYU athletes. Built Bars filed a lawsuit in November 2024 against Blue Unicorn, a small startup in Springville that creates plant-based protein bars. The lawsuit, filed in the U.S. District Court for Utah, says the Built trade secrets provide the company a “significant competitive advantage.” The suit alleges Blue Unicorn and food scientist Luke Tolley misused trade secrets and engaged in deceptive trade practices by misrepresenting its products. Jason Christensen founded Blue Unicorn in February 2024, and Tolley is credited as the creator of the products. On Monday, Christensen announced the legal proceedings were finished as the companies reached “an amicable resolution.” While he wouldn’t share details on the resolution, Christensen did say, “The case has been dismissed and we are very pleased with the outcome.” With the legal matter resolved, Blue Unicorn is now expanding its retail presence in Utah. Starting this month, Blue Unicorn will have products in 62 retail outlets, including 22 Harmons Grocery locations and various other grocery stores. “We’re pleased to have reached a resolution and are eager to focus entirely on what drives us — bringing joy to healthy living,” Christensen said. “This has been a landmark year for our team, and the response from retailers and customers has been incredible.” The lawsuit In November 2018, Built Bars entered into an asset purchase agreement and product development agreement with Other Nutrition Company Inc., where Tolley worked at the time. The agreements stipulated that Built acquired all rights to the research, development and manufacturing of the “whipped whey protein-based products” that were being created. Built Bars claims Blue Unicorn obtained Built’s trade secrets through Tolley and Tolley’s sister, Rebecca Hansen, who was Built’s research and development manager until May 2021, and used them to create protein products to compete with Built. “Blue Unicorn’s protein bar products were developed using the Built trade secrets, including but not limited to certain trade secrets and confidential and proprietary information pertaining to the production, preparation and manufacture of certain protein bar products,” the lawsuit states. Tolley allegedly breached agreements by using trade secrets to benefit a competing company and approaching Built’s wholesale customers and other influential individuals in Utah County to promote and sell the competing protein bars, the lawsuit claims. Built sent Blue Unicorn a cease-and-desist letter in July 2024, alleging that Blue Unicorn was using Built’s trade secrets. A month later, Blue Unicorn responded, denying the allegations and listing the differences between the two products. Built Bars amended its complaint on Jan. 17, after Blue Unicorn submitted a motion for dismissal, arguing that Built failed to provide any factual basis for its allegations. The amended document includes additional paragraphs that claim Blue Unicorn’s actions have caused harm. Two of the original claims of relief were also removed, including a conspiracy claim against Tolley. “Built has suffered damage and irreparable harm, including but not limited to damage to reputation, loss of sales and the diversion of Built’s current and potential customers away from Built and to Blue Unicorn,” the complaint states. Christensen responded publicly to the lawsuit on March 4, calling the situation a “David vs. Goliath story” and saying it “appears to be an attempt to stifle competition through litigation rather than innovation.” Christensen called the trade secret accusations and other allegations “baseless” and said he refuses to let his company be “bullied out of the market.” He explained that Blue Unicorn products are “fundamentally different” from Built Bars, as Blue Unicorn bars are plant-based and allergen-free, compared to the whey-based bars Built produces. “Tolley developed Blue Unicorn’s proprietary technology and recipes based on his ongoing research in plant-based proteins — work that he conducted several years after his contract with Built ended,” Christensen said. “Tolley was never employed or bound by any noncompete agreement with Built.”
