David Murray and Charter Pacific, Future on the Line
The unconscionable conduct court action brought against Charter Pacific by Christopher Burke is set to start on December 6th, 2021 in the Supreme Court of NSW, Australia. The damages claim could well be in excess of AUD $ 100 million with a strong legal acknowledgement of likely success for the Plaintiff, Christopher John Burke.
Thereafter, it is envisaged to gain court determination for the exploitable use of the Exclusive Patent Licenses issued to Christopher Burke's company. Currently, Charter Pacific are continuing their ongoing attempt to restrain the Exclusive Patent License Agreements issued to Microlatch Hong Kong.
Christopher Burke alleges that Charter Pacific (CPC) made a number of deceptive and misleading representations, including the ability to successfully implement a reverse takeover, via the Australian Securities Exchange (“ASX”) that would lead to a majority shareholding in CPC the listed entity being transferred to him. The damages are based on the loss of opportunity to monetise a series of remote access biometric identification patents, one of which had been valued at having a maximum licensing opportunity estimate of USD 313 million. It includes payment of AUD $ 21 million.
The facts that Christopher Burke relies on are that Charter Pacific had no reasonable basis to make reverse takeover and listing representations to him. They either had no knowledge of the ASX rules (which following production pursuant to subpoena of all the ASX correspondence with Charter Pacific is incorrect), were deliberately ignorant or were wilfully blind to them.
Subsequent to the failure of the ASX reverse takeover, Charter Pacific was delisted from the ASX and then proceeded with another failed attempt with the reverse takeover strategy – this time on the National Stock Exchange of Australia (“NSX”). Charter Pacific could not perform its obligations, under a share purchase agreement, to the Burke companies regarding the reverse takeover strategy. They failed at this as well.
Charter Pacific enticed Burke with the prospect of an AUD $21 million payment and a majority shareholding in their company, at that time a listed entity on the Australian Stock Exchange, to enter into loan agreements with obligations that they knew had to be met by the remuneration received from the reverse takeover.
With the failure of the reverse takeover, Burke did not have the funds needed to meet its obligations under the loan agreements. Charter Pacific initiated proceedings to obtain collateral in the form of a patent portfolio that had numerous patents in the biometric technology space for mobile devices. In essence, Charter Pacific is alleged to have coordinated a deliberately orchestrated course of conduct to divest Burke of his patent portfolio through deception and misleading conduct.
To illustrate the potential magnitude of the revenue stream that may inure to the benefit from such divestiture, Charter Pacific has publicly provided a shareholder update on its website, as recently as August 19, 2020, stating that it has added seven (7) new patents to its patent portfolio, and that it has notified Apple of infringement of several patents. They also point to the Inngot valuation that potentially values a successful action against Apple Inc at up to USD $313 million. Should Burke win this lawsuit, he may be entitled to a portion of licensing or litigation proceeds that are ultimately obtained from Apple. In the alternative he may be entitled to reclamation of the divested patent portfolio.
Charter Pacific are attempting to permanently restrain the Exclusive Patent License Agreements issued to Microlatch Hong Kong. Charter Pacific have setup Patent Technologies P/L. with David Murray. David Murray is the ex-chairman of AMP. They jointly acquired patents through liquidation of Christopher Burke owned and controlled companies. The liquidation process resulted in the patents being assigned to Patent Technologies P/L., a company beneficially owned by Charter Pacific.