Breach of license agreement scam using the names Nut Tanawat and Bioway Corporation
Date First Reported: May 2014
Primary Name Associated: Nut Tanawat
Description of Potential Fraud:
A Kansas firm reported to us that they’ve been contacted by the purported Nut Tanawat and Bioway Corporation with regards to retaining their services to collect on a breach of a copyright agreement.
This is a classic bad cheque scam that presents as legal matter requiring the assistance of a lawyer. In this scam lawyers will be duped into wiring real funds from their trust accounts after depositing a fake cheque received as payment from the party in breach of the agreement (who is also part of the fraud). See our Confirmed Fraud Page for more of an explanation of how these frauds work and to see other names associated with it. Our Fraud Fact Sheet lists the red flags of a bogus legal matter that is really a fraud.
Here is the initial contact email sent by the fraudster to the lawyer:
From: [email protected] [mailto:[email protected]]
Sent: Sunday, May 04, 2014 3:22 PM
To:
Subject: Trade Mark Matters
Dear sir/madam
I am contacting you in regards to a breach of license agreement, unfair competition, and trademark infringement with a client in your locale. Our client was granted an exclusive license to use and modify our Japanese language software products to create and manufacture English language versions of the Products and derivative products in the English language, and the exclusive rights to distribute the English language versions of the Products throughout the USA. However, it was later uncovered that our client was equally manufacturing the Spanish language of our product without license. In addition, our client was equally distributing the unauthorized products within and to other regions outside USA and this is a complete violation of our agreed terms.
On behalf of my company, I will like to enforce our intellectual property rights with respect to the unauthorized production of the versions of our products in Spanish language and the unauthorized distribution of the products within and to other regions outside USA . If these falls under the scope of your practice and my request could be reasonably accommodated, please contact me as soon as possible so that I can provide you with further details. Otherwise, if you are not in a position to assist on these issues, your advice on the appropriate measures to take could be of assistance.
I will appreciate your prompt response. Thank you.
Warmest regards,
Nut Tanawat
President/Ceo
BIOWAY CORPORATION.
Address: 3rd FLOOR, NO. 169-6, SEC
CHANGAN EAST ROAD IN TAIPEI 2 TAIWAN
TELL: 02-2771-2196
FAX: 02-2741-3770
Email: [email protected]
WEBSITE: http://www.bioway.com.tw
Replying to the email brought this response:
Thank you for your prompt reply to my mail. This is an official request for your services on behalf of my company towards the enforcement of our intellectual property rights. We have a contract manufacturing agreement with Merck & co.,Inc for the manufacture, supply and distribution of our medical and pharmaceutical products to consumers USA . These medical and pharmaceutical products or devices are embedded or preloaded with our proprietary softwares coded in Taiwanese language but equipped with a Taiwanese to English language translator from our factory or assemble plants here in Taiwan before being shipped to the USA. You may visit our company website http://www.bioway.com.tw to intimate yourself with our products and operations., Below find the company full information..
MERCK CO., INC.
7500 COLLEGE BLVD
OVERLAND PARK KS 66210,
USA.
However, as a result of increased market demand for our medical and pharmaceutical devices in USA and to make our products compete more favourably with other products, there was the need to have the embedded softwares written in English language. It was considered that these will remove several inefficiencies as result of translation from Taiwanese to English language. As a result of the foregoing, we enter into a copyright license agreement with our client for the translation of our software programs from Japanese to English language for our medical and pharmaceutical devices. As result of the foregoing, we entered into a copyright license agreement with our client in Aug 2011 for the translation and development of our software programs in English language.
However, in Dec. 2012 during a schedule facility and inspection tour by our audit consultant from Taiwan to our client manufacturing facility in USA, it was uncovered that our client was equally manufacturing the Spanish language versions of our product without license. In addition, our client was equally distributing the unauthorized Spanish language versions of our products within and to other regions outside of USA and this is a complete violation of our agreed terms.
Following the initial discovery by our audit consultant, a detail investigation was carried and it was uncovered and confirmed by our client that 250,000 copies of the Spanish language version of the software
programs have been produced and 200,000 shipped and sold already in Mexico. After this agreement was breached, we had a lengthy negotiation, and consequently it was mutually resolved and agreed that sixty-five percent (65%) earned profits on the unauthorized production should be payable to us and payment deadline of 30th of September, 2013 was agreed. However, the deadline date was extended to 28th of January, 2014 as requested for by our client.
Quite unfortunately, the extended deadline was not been honoured. Attached is a copy of our copyright license agreement with Merck Co., Inc.
Despite the foregoing, I will like to draw your attention to the relationship with our client 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.
If your firm is retained, our expectation of your services for now will be within the scenario of a engagement letter to our client. This approach will trigger the much needed response from our client towards amicable settlement otherwise we will not hesitate to go into court litigation. We are prepared to pay your retainer fees.
Litigation may be introduced as a last resort when options have been exhausted. Please time is of the essence for us now. We look forward to your prompt response and you may send your retainer document as well.
Nut Tanawat
President/CEO
BIOWAY CORPORATION.
Address: 3rd FLOOR, NO. 169-6, SEC
CHANGAN EAST ROAD IN TAIPEI 2 TAIWAN
TELL: 02-2771-2196
FAX: 02-2741-3770
EMAIL: [email protected]
WEBSITE: http://www.bioway.com.tw
How to handle a real or suspected fraud
If you have been targeted by any of these frauds, please forward any of the emails and supporting documents that you have received to [email protected].
If you suspect you are acting on a matter that might be a fraud, call LAWPRO at 1-800-410-1013 (416-598-5899). We will talk you through the common fraud scenarios we are seeing and help you spot red flags that may indicate you are being duped. This will help you ask appropriate questions of your client to determine if the matter is legitimate or not. If the matter you are acting on turns out to be a fraud and there is a potential claim, we will work with you to prevent the fraud and minimize potential claims costs.
If you have been successfully duped, please immediately notify LAWPRO as there may be a claim against you. Instructions on how to report a claim are here.
For more immediate updates on fraud and claims prevention, subscribe to the email or RSS feed updates from LAWPRO’s AvoidAClaim blog.
Fraud Fact Sheet More fraud prevention information and resources are available on the practicePRO Fraud page, including the Fraud Fact Sheet, a handy reference for lawyers and law firm staff that describes the common frauds and the red flags that can help identify them.
June 02, 2014 at 6:48 pm, Larry said:
I received the exact same email a couple of days ago. I did not respond, as I suspected it was spam to begin with (it was not sent to my office email, but to an older email I maintain). I have seen another bad check scam sent to a realtor friend of mine. This check was to purchase a home outright, but I had my bank verify the check before it was deposited into my IOLTA account (I would not have remitted any funds until that check had fully cleared in any event). It was fraudulent.
With so much international and out-of-state clients these days, it is always prudent to be very careful with your trust account and not only have funds to cover bad check fees (international fraudulent checks can carry fees from two or more banks, and they are higher), but also to be very sure no funds are disbursed before the check fully clears. Better yet, simply request a wire transfer, which is faster to post to your account by far. If they refuse, you know where the deal stands.
June 08, 2014 at 2:42 am, Mike Appleton said:
Received the Bioway email at my law office in Orlando yesterday. Frankly, these sorts of inquiries are so transparently fraudulent that I am surprised that anyone is ever fooled. They are never addressed to a named firm or attorney, make no reference to a specific jurisdiction and are textually and grammatically unprofessional.
June 09, 2014 at 10:11 pm, Streb Lovell said:
Some red flags–Nut Tanawat is not a Chinese name. Software would be in Mandarin, not “Taiwanese language”. Nut’s email is “qq.com”, and not a Bioway email. The site “qq.com” is in simplified characters, which China uses, meaning that qq.com is a Chinese site not based in Taiwan. Taiwan uses traditional characters. (Even non-Chinese speakers can learn to spot the difference between simplified and traditional characters).
August 25, 2014 at 4:22 pm, James W. Hill said:
Here’s a similar one sent to me August 19, 2014:
From: Chan Cheng [mailto:[email protected]]
Sent: Tuesday, August 19, 2014 12:05 AM
To: Hill, James
Subject: 回覆︰ Copyright Infringement Case
Dear Counsel,
This is an official request for your services on behalf of my company (HARVEST & ROYAL MACHINERY INDUSTRIAL COMPANY)towards the enforcement of our intellectual property rights. We have a contract manufacturing agreement with QWEST COMPANY,LLC for the manufacture, shipping supplies to consumers in the US. These wholesale packaging supplies and wholesale shipping supplies. or devices are embedded or pre loaded with our proprietary software coded in Chinese language but equipped with a Chinese to English language translator from our factory or assembly plants here in China before being shipped to the US.QWEST COMPANY,LLC
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 favourably 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 QWEST COMPANY,LLC. 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 our client in January 2012 for the translation and development of our supply programs in English language.
However, in July 2012 during a schedule facility and inspection tour by our audit consultant from china to our client manufacturing facility it was uncovered that QWEST COMPANY,LLC 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 and this is a complete violation of our agreed terms.
Following the initial discovery by our audit consultant, a detail investigation was carried and it was uncovered and confirmed by our client that 250,000 copies of the Spanish language version of the software programs have been produced and 200,000 shipped and sold already in Mexico. After this agreement was breached, we had a lengthy negotiation, 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. ($ 1,850,000.00) should be payable to us and payment deadline of 30th of September, 2013 was agreed. However,this current economic climate, we cant afford to to have $1,850,000.00 pending indefinitely with a customer. the deadline date was extended to 28th of January, 2014 as requested for by ACCUBUILT,INC. Quite unfortunately, the extended deadline was not honored.
Despite the foregoing, I will like to draw your attention to the relationship with QWEST COMPANY,LLC. 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. This approach will trigger the much needed response from them towards amicable settlement of the matter and we are ready to go to litigation if they do not pay up.We are prepared to pay your retainer fees.
We look forward to your prompt response and you may send your retainer document as well.
Best Regards,
Cheng Gong Chan
B16e Jingui Building,
Shenzhen, Guangdong,
China (Mainland)
Telephone :86-755-2156271
September 23, 2014 at 8:51 am, Bradley L. Smith said:
We responded to an ambiguous inquiry through our website. This morning we received essentially the same email as that posted by James W. Hill, above. We are IP attorneys and represent several legitimate Chinese clients in IP disputes, and initially guessed that one of our existing clients had referred us. We became suspicious not so much because of poor grammar/translation (which is not unusual for those clients), but because of the size of this purported dispute ($1.8 million). We would have expected the inquiry to originate from Chinese or HK counsel, or that the email explain how they found us, or something more than a generic website inquiry.
Great information. So glad I found this site using Google.
September 25, 2014 at 11:25 am, Tim Headley said:
I received the same email
From: Cheng Chan [mailto:[email protected]]
Sent: Thursday, September 25, 2014 3:06 AM
“We have a contract manufacturing agreement with EPI ENGINEERING INC for the manufacture, shipping supplies to consumers in the US. These wholesale packaging supplies and wholesale shipping supplies. or 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 or assembly plants here in China before being shipped to the US.
EPI ENGINEERING INC. 9801 Westheimer Ste 1070, Houston, TX 77042”
October 01, 2014 at 10:57 pm, Sean Goodwin said:
I received the same email on 9/26/14 as James W. Hill, only the alleged defendant was “BRENNTAG INC” on the south side of Chicago. I am an IP attorney and went to law school with several classmates from China, so I thought it could be legitimate. The red flags for me were found in the “Copyright Settlement Agreement.” Again, the upfront settlement was for $1.8 million, and it is a very poor example of a contract. It also looked like it had been cut and pasted.
Thanks for posting this and spreading the word!
November 25, 2015 at 6:56 am, Cherry said:
I also got an email about this tanawat thing.
From: Tanawat
Subject: Documents from tanawat resources ltd
Dear Sir,
Kindly view these documents for proposed Agreementby Tanawat Resources Ltd, sent throughDHL EXPRESS. for confidential purposes.
PKG CODE: DH8040984
Regards,
Ritchelle Navaja
Tanawat Resources Ltd.
All rights reserved. DHL Worldwide Delivery 2015.