2.2. Patent License Grant to LMT. Upon the terms and conditions set forth herein (including the termination provisions in Article 7 hereof) and subject to the Field of Use Restrictions, Eontec hereby grants to LMT a non-revocable, paid-up, royalty-free, perpetual license (or sublicense, as the case may be) to the Eontec Licensed Patents and Eontec Licensed Technical Information to make, have made, use, offer to sell, sell, export and import LMT Licensed Products within the LMT Field in the LMT Exclusive Territory and Non-Exclusive Territories. Such license shall be exclusive to LMT (including to the exclusion of Eontec and its Affiliates) in the LMT Exclusive Territory and shall be non-exclusive in the Non-Exclusive Territories. Notwithstanding the foregoing, nothing in this Agreement shall prohibit LMT from engaging in research or development activities in the Eontec Exclusive Territory. (See, Article 2 Patent License Grant and Related Covenants)
The license from Eontec to LQMT is subject to the Field of Use Restrictions.
The Field of Use Restrictions is found in Appendix C.
APPENDIX C Field of Use Restrictions The licenses granted under this Agreement shall be subject to the following exclusions, conditions, restrictions, and limitations: 1. The licenses granted to Eontec and LMTunder this Agreement shall exclude the following products and fields of use: a. Any Consumer Electronic Products (as defined below) or any components or sub-components suitable for use with any Consumer Electronic Products. For this purpose, “Consumer Electronic Products” means personal computers (portable and desktop); tablet or slate style computing devices; handheld electronic and/or communication devices (e.g., smartphones, digital music players, multi-function devices, etc.); any device whose function includes the creation, storage or consumption of digital media; any component or sub-component in any Consumer Electronic Product; and any accessory that is the same or similar (in the sole discretion of Apple, Inc.) to an accessory made or sold by or on behalf of Apple (regardless of when Apple sold or started to sell such accessory, including after date of the closing of the Proposed Transaction) that is suitable for use with any Consumer Electronic Product.
Section 2.2. clearly states the the license to LQMT is subject to the Field of Use Restriction, which clearly states thatthe license to LQMT excludes any consumer electronic product.
I respectfully submit that Section 2.2 and Appendix C of the cross license agreement prevents LQMT from using Eontec's IP from the field of consumer electronics despite your assertion to the contrary.
As an example, did you forget that Li has been promoting the use of BMG in USB-C ports/connectors and Phone backplates/midframes, hinges etc at his Symposium, where Foxconn was present.
I prefer to believe in formal filings with the SEC rather than press releases that have been subjected to computer generated translations and where you cannot be certain whether Li is referring to Eontec, LQMT, or some other company.