POW! Entertainment Inc. (fka POWN)

[rickn23]

"Father of Marvel" StanLee sue Chengxing International Holdings to face $1 billion in

http://westdollar.com/sbdm/hk/news/1535,20180522875281250.html

Because of a $11.5 million acquisition last year,Chengxing International Holdings(02662, HK) will now face up to 1 billion US dollars in claims litigation.

On the morning of May 21, Announcement of Chengxing International Holdings confirmed its subsidiary POW! Entertainment, Inc. (Hereinafter referred to as POW! Entertainment) was sued by Stan Lee, the father of Marvel, and the announcement also stated that no relevant documents have been received so far.

Liu Kai, an entertainment law lawyer from Hunan Wensheng Law Firm, analyzed the “Daily Economic News” reporter. In general, the amount of lawsuit and litigation fee are positively related, that is, the higher the amount of lawsuit, the higher the corresponding litigation fee. "Therefore, it is necessary to comprehensively consider the magnitude of losses, the circumstances of the evidence, and the level of the court's verdict to determine the amount of compensation claimed. Of course, it is not excluded from the eye-catching perspective to determine the amount of compensation."

? The father of "Marvelville" sued

If there is another chance, Chengxing International Holdings may have to consider whether it will be POW! Entertainment received the rest.

POW! Entertainment was originally founded by Stan Lee and is mainly engaged in multimedia production and licensing. Stan Lee is a world-renowned comic book creator and screenwriter. He has created cartoon characters such as Spider-Man, Iron Man, Hulk, and X-Men. Respect is called "Father of the Marvel."

In May 2017, Chengxing International Holdings announced that it plans to acquire POW for USD 11.5 million through a wholly-owned subsidiary! Entertainment’s overall equity. According to the agreement signed on September 28, 2017, after the acquisition is completed, POW! Entertainment will issue new shares in its 15% owner's equity to Stan Lee at zero cost, that is, in the end, POW! Entertainment became an indirect holding subsidiary of Chengxing International Holdings.

On October 31, 2017, Chengxing International Holdings announced that it had completed POW! Entertainment's acquisition. At that time, Chengxing International Holdings stated that POW! The intellectual property developed by Entertainment and Stan Lee, combined with the company's strong intellectual property licensing and distribution capabilities, will create strong synergies and improve and promote the Group's brand development, management and licensing business.

Chengxing International Holdings disclosed in the 2017/18 interim report that POW! Entertainment currently has more than a hundred IPs that are in operation and not yet exposed. These IP resources have injected a strong momentum for the Group's own IP and opened a new chapter in the Group's proprietary IP business.

However, Chengxing International Holdings' “IP new chapter” has only just begun, and it is likely to be “closing”. Stan Lee submitted the indictment to the court less than a year after the completion of the acquisition.

On May 16th, Chengxing International Holdings announced that it was learned from media sources that Stan Lee had already turned to POW! Entertainment filed a lawsuit. Stan Lee said POW! Defendants such as Entertainment conspired to deliberately make a major false statement of fact and obtained Stan Lee’s signature in a coercive or fraudulent manner to obtain Stan Lee’s exclusive rights to use his identity, name, image, and portrait, and to apply for more than US$1 billion in damages.

? "Astronomical Claims" is 17 times of net assets

On May 21st, Chengxing International Holdings announced once again that it was confirmed by legal representatives that Stan Lee had been in the relevant court in the United States for POW! Entertainment filed a formal complaint, but so far, the company has not obtained any documents concerning the complaint.

The reporter of the "Daily Economic News" queried the latest performance report of Chengxing International Holdings and found that as of December 31, 2017, the company's net asset value was approximately HK$460 million (equivalent to US$578.6 million), compared with the public report by Stan Lee. The one billion US dollar compensation, a difference of nearly 17 times.

The reporter tried to interview Chengxing International Holdings on the above-mentioned lawsuit and IP layout-related issues, but as of this writing, no reply was received. Prior to this, the company had stated in the announcement that Stan Lee granted POW! It is ridiculous for Entertainment to use its proprietary rights to create works and identities without knowing it. There is no legal basis for claims.

"In the media reports, I particularly noticed that the father of Marvel's claimed that the other party used his own deteriorating vision to implement fraud, so it is necessary to discuss the situation in the lawsuit." Liu Kai analyzed that if the degraded vision If you have reached the conditions for failing to read the terms and do not have contracting capabilities, you should have their close relatives or legal representatives present when you sign the relevant agreement, or get their approval afterwards.

“But if the relevant agreement mandate truly reflects the wishes of the contract signer and does not make people misunderstand, Stan Lee’s vision has not degraded to the fact that it is impossible to see the contractual content and other restrictions on the ability to perform. Then, the father of Marvel’s 'If there is no definite proof that the contract counterparty has committed fraud, I personally believe that the possibility of winning is not great,' said Liu Kai.

On the evening of May 21, Cheng Hing International Holdings announced again that it had issued a writ of summons dated May 21, 2018, together with a claim endorsement, through the Hong Kong High Court to institute legal proceedings against Stan Lee for recovery. Due to the false accusations in the U.S. complaint, the group suffered damages and damages.