My question involves business law in the state of: North Carolina
I have worked the past five years on a line of products involving my own patents and inventions in conjunction with a manufacturer in China. We had agreed from the start that:
1. We would all share in the profits (I would do engineering and they would funnel it into their existing sales channels)
2. They would pay 100% of the fees for the patent attorney.
The first problem came when I was told I had a royalty agreement but found that to be false, when I brought the agreement to my own attorney he said it was unenforceable and called certain passages "nefarious", They have been selling the product nearly a year and I have yet to see a dime in royalties or even a report on sales (which they are supposed to send each quarter, therefore breaking the agreement).
I have a signed and very clear contract from them saying they will pay the patent attorney in full, however I later received a letter from the patent attorney that it is me and my partner in the US who are technically responsible for his payment, despite the fact I have the contract stating in very clear terms they will pay.
In December the partner and Chinese informed me that they had spoke with the lawyer and worked out a deal to lessen the payments, I received an email from the attorney that if I pay $1,600 by Jan. 1, 2017, he would be paid in full. I paid the $1,600 and thought it would be the end. I later found my partner had racked up $10,000 in bills unrelated to our company, and payments were still pending regarding my patents. I never authorized any of these transactions.
When I confronted my partner, he made the threat he would keep the Chinese from paying unless I did further engineering work for him for free. He said that he keeps all of his assets in other people's names (his kids, sister, etc.), so he could not be sued and the lawyer could sue me which scares me because the only asset I have is my place to live. I've been warned not to contact the patent attorney, but I find it very hard to believe that he can legally make me pay his expenses the rest of my life, and work for him for free just because he can afford to go to court and I can't.
I have a strong feeling that I should go into the lawyer's office tomorrow and demand I be removed from the payment agreement but am worried: could this backfire and be a mistake for me? do I really need to stay in debt to these people? do I have other options? Do I stand a chance to recoup any royalties or at least get out of debt?
Please help me with this, I have lost a lot of sleep due to the situation and feel completely trapped with no recourse, despite doing nothing wrong. Any input is appreciated.
I have worked the past five years on a line of products involving my own patents and inventions in conjunction with a manufacturer in China. We had agreed from the start that:
1. We would all share in the profits (I would do engineering and they would funnel it into their existing sales channels)
2. They would pay 100% of the fees for the patent attorney.
The first problem came when I was told I had a royalty agreement but found that to be false, when I brought the agreement to my own attorney he said it was unenforceable and called certain passages "nefarious", They have been selling the product nearly a year and I have yet to see a dime in royalties or even a report on sales (which they are supposed to send each quarter, therefore breaking the agreement).
I have a signed and very clear contract from them saying they will pay the patent attorney in full, however I later received a letter from the patent attorney that it is me and my partner in the US who are technically responsible for his payment, despite the fact I have the contract stating in very clear terms they will pay.
In December the partner and Chinese informed me that they had spoke with the lawyer and worked out a deal to lessen the payments, I received an email from the attorney that if I pay $1,600 by Jan. 1, 2017, he would be paid in full. I paid the $1,600 and thought it would be the end. I later found my partner had racked up $10,000 in bills unrelated to our company, and payments were still pending regarding my patents. I never authorized any of these transactions.
When I confronted my partner, he made the threat he would keep the Chinese from paying unless I did further engineering work for him for free. He said that he keeps all of his assets in other people's names (his kids, sister, etc.), so he could not be sued and the lawyer could sue me which scares me because the only asset I have is my place to live. I've been warned not to contact the patent attorney, but I find it very hard to believe that he can legally make me pay his expenses the rest of my life, and work for him for free just because he can afford to go to court and I can't.
I have a strong feeling that I should go into the lawyer's office tomorrow and demand I be removed from the payment agreement but am worried: could this backfire and be a mistake for me? do I really need to stay in debt to these people? do I have other options? Do I stand a chance to recoup any royalties or at least get out of debt?
Please help me with this, I have lost a lot of sleep due to the situation and feel completely trapped with no recourse, despite doing nothing wrong. Any input is appreciated.
Contract Law: How to Enforce a Royalties Agreement With a Chinese Company
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