A Los Angeles Superior Court ordered China Lucky Film to liquidate its ownership interests in intellectual property — including two brand new patents — to pay off a multi-million dollar judgment.
That’s according to Royal Marketing, the company to whom those millions are owed.
At issue: “Negligent misrepresentation, breach of warranty and breach of the implied covenant of good faith.” Royal Marketing says it had been in business 25 years as one of Konica Minolta’s “largest and most successful independent distributors of its photo imaging products.” It catered to the cruise line industry among others. Then it switched suppliers, and “our deal with China Lucky killed our business,” Royal says. “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.”
Now the Los Angeles Superior Court has ordered the immediate transfer of China Lucky’s intellectual properties to a court appointed Receiver for liquidation to satisfy a nearly three-million dollar judgment the company has failed to pay for more than four years. The patents to be auctioned are for “double sided photographic paper” and “the back sheet for solar cell and method of manufacturing the same.”