Top Chinese Firm's Patents and Trademarks Confiscated to Pay Off Judgment

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A Los Angeles Superior Court ordered China Lucky Film Corporation to liquidate its ownership interests in intellectual property -- including two brand new patents -- to pay off a multi-million dollar judgment owed to Royal Marketing. Royal Marketing executives hail the ruling as a victory for justice and fairness.

On October 1, 2013, in Case No. PC 040277, a Los Angeles Superior Court 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. 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.” (see

The Receivership arose out of a multi-million dollar judgment entered against China Lucky by a Los Angeles Superior Court in April 2009 (Case No. PC 040277) – 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 patents and to use the proceeds to satisfy the judgment which continues to accrue interest at the rate of $16,666.66 every month. (see

According to court records for Case No. PC 040277, on March 27, 2009 a jury in Los Angeles Superior Court 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. In July 2010 the Court of Appeals of California, Second District, Division Three affirmed this decision in Case No. B217184 (see

After the initial verdict was reached, Bob Bakhshi, President of Royal Marketing noted: “We always believed that when a jury heard the truth of what transpired and how China Lucky behaved, it would make the findings it did.” 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.” (see

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.

According to the October 13, 2013 court order, 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.

China Lucky’s “double sided photo paper” was promoted 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.” 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.

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Farshid Ourian
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