Top Chinese Firm's Patents and Trademaek confiscated

Los Angeles Superior Court ordered China Lucky Film Corporation to liquidate all of its ownership interests in any intellectual property -- including two brand new patents
 
CANOGA PARK, Calif. - Oct. 21, 2013 - PRLog -- October 1, 2013, Los Angeles, CA – Los Angeles Superior Court ordered China Lucky Film Corporation to liquidate all of its ownership interests in any intellectual property -- including two brand new patents -- to pay off $3 million dollars judgment owed to Royal Marketing. Royal Marketing executives hail the ruling as a victory for justice and fairness.

Los Angeles Superior Court ordered immediate transferred of China Lucky’s intellectual properties to a court appointed Receiver and then liquidated to pay a nearly three-million dollar judgment the company has failed to pay for more than four years.  Additionally, the court stripped China Lucky of its ownership in the “LUCKY” trademark and ordered the Receiver to likewise sell it off to satisfy the judgment.  Emanuel Barling, Jr., was named Receiver and was substituted in place of China Lucky’s ownership interest in the two patents and the trademark “in all respects.”

    The Receivership arose out of a multi-million dollar judgment entered against China Lucky in April 2009 – a judgment which China Lucky refuses to pay.  The judgment together with accrued interest is just under $3 million and the Receiver was appointed to “liquidate” the patent and to use the proceeds to satisfy the judgment which continues to accrue interest at the rate of $16,666.66 every month.

    According to court records, on March 27, 2009 a jury found China Lucky liable for negligent misrepresentation, breach of warranty and breach of the implied covenant of good faith and fair dealing arising out of its business dealings with Royal Marketing, a Los Angeles based photo-imaging distribution business with nationwide distribution.  After a four week trial, the jury returned its multi-million dollar verdict against China Lucky and in favor of Royal Marketing.

    After the verdict was reached, Bob Bakhshi, President of Royal Marketing noted: “We always knew that when a jury heard the truth of what transpired and how China Lucky behaved, it would make the findings it did.  Royal Marketing and China Lucky had entered into a long term distribution deal and almost from the beginning, they started giving us problems.”  Bakhshi added: “First they refused to sell us one of the products set forth in the agreement that they signed.  Then we found out later – after having purchased and re-sold in the United States several hundreds of thousands of dollars of the photo paper they manufactured – that their paper was not appropriate for sale in the U.S.  One of their own local consultants actually admitted this at the trial.  It was astonishing.”

    Royal Marketing had been in business 25 years when it started purchasing product from China Lucky.  Prior to that, Royal had been one of Konica Minolta’s largest and most successful independent distributors of its photo imaging products – catering to the cruise line industry among others.  “Our deal with China Lucky killed our business.”  Said Bakhshi.

    The patents to be auctioned are for “double sided photographic paper” and “The back sheet for solar cell and method of manufacturing the same.”  The ‘double sided’ patent was issued in April 2013 and the ‘solar cell’ patent was just issued on September 17, 2013.  “It is astounding that China Lucky would give up these two extremely valuable patents and even their trademark/logo instead of simply paying the judgment – it is the height of arrogance” said Bakhshi.

    When asked about the last four years and the fact that China Lucky has refused to pay the court ordered judgment, Royal Marketing’s co-owner, Farshid Ourian, stated “It’s shameful that a company the size of China Lucky, which is wholly-owned by another massive Chinese conglomerate – the China Aerospace Science and Technology Corporation (CASC) – refuses to pay for the substantial and irreparable damage it caused and that a jury has ordered it to pay.  The judgment amount is Minuscule to this group – and they were under the impression that because they operate outside of the United States it would be extremely difficult to forcethem to pay.  There are no real consequences for a company like China Lucky that temporarily operate or sell its products in the United States, damage third parties and then cease doing business here.”

    China Lucky’s “double sided photo paper” was promoted by China Lucky as a revolutionary new product that actually showed real promise and seemed to be a legitimate item that could have generated millions of dollars for the company.  Similarly, its solar cell technology appears to be cutting edge.  Mr. Ourian noted: “They refuse to pay even one cent of the judgment and apparently, would rather lose their patents and trademark than pay us.  Now the Receiver is going to auction all of it off.  We will also see to it that a trademark infringement action is commenced against them if they sell or import any of their products with the “LUCKY” logo that used to belong to them.”

    When asked if he had any advice for future business partners of China Lucky, Mr. Ourian said, “Anyone contemplating business with the China Lucky Film Corporation should look at this case, and then make its own business decision accordingly.” At least for now, it looks like the hunt for China Lucky assets may be over.  Royal Marketing believes the two patents and trademark can be sold off in a matter of weeks and the judgment paid in full with the sale proceeds.

For Further Information please contact:

Farshid Ourian

Tel: 818-998-4500

Email: Farshid@royalmarketing.com

Website: www.chinaaerospacetechnology.com
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Tags:China Lucky Film, China Aerospace
Industry:Photography, Technology
Location:Canoga Park - California - United States
Subject:Awards
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