Sinopoly Battery Limited (HKG:0729) announced that on 19 July 2012 Thunder Sky Energy Technology Limited, an indirect wholly-owned subsidiary of the company, received a Writ of Summons endorsed with a Statement of Claim issued in the High Court of Hong Kong in relation to legal proceedings commenced by Winston Chung and Thunder Sky Battery Technology Limited (together with Chung, the "Chung's Parties") against Thunder Sky.

The company has made several clarifications, firstly, the new legal proceedings allege that because certain provisions in a patent licensing deed executed between the Chung's Parties and Thunder Sky (HK) contain uncertainties, they are void and unenforceable, and this has allegedly caused Thunder Sky (HK) to lose its right to use the relevant patents after 25 May 2012.

The company has yet to obtain a copy of the Questionable Deed but the relevant clauses quoted by the Chung's Parties in the Statement of Claim of the new legal proceedings are not to be found in the patent license deed actually executed by Thunder Sky (HK) as evidenced by an original copy maintained by Thunder Sky (HK) as part of its records. The company believes that the Questionable Deed is a fraudulently altered and/or completely fabricated document. The company has reported to the Commercial Crime Bureau of the Hong Kong Police the use of the Questionable Deed by the Chung's Parties in the new legal proceedings

The company considered the new legal proceedings to be fraudulent, frivolous and vexatious and an abuse of legal process. The company will take, and will cause Thunder Sky (HK) to take, all necessary actions and measures to vigorously defend against the new legal proceedings. The company also considered that the new legal proceedings will have no potential negative impact on the company and its subsidiaries and will not affect the current operations of the group.

Source:chinesestock.org