Replies to post #105998 on Liquidmetal Technologies Inc (LQMT)

[PatentGuy1]

"IF Prof. Li has any BMG components orders from Wistron, and does “transfer orders to the domestic’ U.S.A Liquidmetal company from Eontec,then he would see a HUGE increase in his LQMT shares, far more than he would see from EON shares."

Sounds to me that you have perfectly described a huge conflict of interest for Li - transfer a contract from Eontec to Liquidmetal so that he will personally benefit despite the negative consequences to his shareholders in Eontec.

I doubt that Li will transfer an order for BMG components from Eontec to Liquidmetal in the situation you described above for several reasons:
1) Liquidmetal exporting BMG components to Asia would be a violation of the non-compete clause of the Eontec-LQMT cross licensing agreement;
2) Li would run the risk of antagonizing his shareholders in Eontec. It is commonly accepted as a fact the high government, military, and communist party officials are major shareholders in "private" Chinese companies. Assuming that is true for Eontec, would Li want to run the risk of antagonizing such powerful shareholders? The fact that such a transfer would be in violation of the non-compete clause of the Eontec-LQMT cross licensing agreement will make it much harder for Li to justify to his Eontec shareholders; and
3) I don't know if Li actually said he would transfer orders between Eontec and Liquidmetal. The quote that you provided, which I presume is a translation from Chinese to English, is as follows: "while with United States liquid metal company in international Shang of visibility and influence, promoted liquid metal in consumption electronic, and The automotive industry, medical equipment, sporting goods and other industries and areas of application and transfer orders to the domestic, accelerate the process of industrialization and internationalization of domestic enterprises in the amorphous."

To me that translation is so poor that I cannot discern its meaning. What is the meaning of "domestic" in "transfer orders to the domestic"? Does it mean "transfer orders to China" or does it mean "transfer orders to the U.S."? Perhaps he meant that when the orders would violate the non-compete clause those orders would be transferred or perhaps not. I believe that the translation too ambiguous to know what is meant.

[CIMA7]

We all need to take into consideration that Li is a capitalist at heart and NOT a communist. LOL...