At the Cobra, Cobra Cabana

Andrew Wei

This is an official request for your services on behalf of my company “LimeCode Technologies Group” towards the enforcement of our intellectual property rights. We have a license agreement with “Cobra Systems Inc”, to translate, develop and distribute our Bar Code Reading software system (LCPPRO-LE64) in the United States. The Bar Code Reading devices are embedded or preloaded with our proprietary software coded in Chinese language but equipped with a Chinese to English language translator from our factory plants here in Hong Kong before being shipped to “Cobra Systems Inc”. [Local address here].

However, as a result of increased market demand for our wholesale packaging supplies and wholesale shipping supplies in the US and to make our products compete more favorably with other products, there was the need to have the embedded software written in English language. It was considered that these will remove several inefficiencies as result of translation from Chinese to English language. As a result of the foregoing, we entered into a copyright license agreement with  [Local address here] United States, for the translation of our software programs from Chinese to English language for our wholesale packaging supplies and wholesale shipping supplies. As result of the foregoing, we entered into a copyright license agreement with “Cobra Systems Inc” in January 2018.

However, in July 2019 during a schedule inspection tour by our auditor from Hong Kong to our client’s manufacturing facility in the US it was uncovered that “Cobra Systems Inc”, was equally manufacturing the Spanish versions of our product without license. In addition, our client was equally distributing the unauthorized Spanish language versions of our products within and to outside the US which was a complete violation of our agreed terms.

Following the initial discovery by our audit consultant, another detailed investigation was carried out by an independent auditor and it was uncovered and confirmed by the independent auditors that 250,000 copies of the Spanish language version of the software programs have been produced and 200,000 shipped and sold already in US and South America. Clearly our license agreement has been breached, after which we had a lengthy negotiation back and forth through our lawyers, and consequently it was mutually resolved and agreed that sixty-five percent (65%) earned profits on the unauthorized production which is of One Million Eight Hundred and Eighty-Five Thousand Dollars Only ($1,885,000.00) should be payable to us and payment deadline of 30th of December, 2019 was agreed. However with this current economic climate, we can't afford to have $1,885,000.00 pending indefinitely with this customer. Previously, the settlement agreement deadline date was extended from December 2019 to 28th of February, 2020 as requested by “Cobra Systems Inc” and it is quite unfortunate the extended deadline was not honored.

Despite the foregoing, I will like to draw your attention to the relationship with Cobra Systems Inc, which has been cordial and we have had a successful business relationship over the past few years, and it is our position to maintain the relationship after settling the issues on hand. Right now, I will like to take appropriate steps and measures to enforce our copyright license agreement and/ or claim infringements and damages as appropriate. Our expectation of your services for now will be within the scenario of a Demand letter to them (Cobra Systems Inc USA). This approach will trigger the much needed response from them towards amicable settlement of the matter.

As I said in my previous message, we are prepared to pay your retainer fees and I have attached the License and The Settlement Agreement between us and Cobra Systems Inc USA. We look forward to your prompt response and after reviewing the documents let me know how you want us to proceed and let me know if you have any questions or need any additional information.


Attached are License and Settlement Agreement between both parties.