I am from Singapore and am seeking legal advice as to I have any recourse on my investment into a Philippines company, which have turned rogue.
- invested USD5K into a product for development by "PhilCo"
- product will be placed on Kickstarter and if project is successfully funded, principal will be returned along with 10% return (total USD5.5K)
- As the investor/backer, I will retain a 15% royalty on the profits (not revenue) of each product sale
- product was launched on Kickstarter twice, but was not successful because the company did not put in any effort to market the product
- now they are not replying my emails and are even RESELLING the rights to the product to other investors to raise more money (I found a proposal posted on a public area several months back soliciting for new investors without mentioning my ownership)
Key investment terms in the agreement:
1) Should, for any reason, the Product be aborted or remain sufficiently undeveloped to initiate a Kickstarter campaign after a period of 12 months starting from the agreed date of funds transfer, the Investor retains the right to withdraw and reclaim the Investment.
2) Investor recognizes that the his Investment is a form of speculative investment which involves substantial risk of loss of his entire investment, and that there can be no assurances that any tax benefits will result from this Investment.
3) Contract is governed by laws of Taguig City with jurisdiction exclusive to the State Courts located in the Philippines.
a) Do I have a case to claw back my investment or at least, take over ownership of the product so that they cannot reuse it and market to other investors?
b) is their actions to resell a product that is partly my property fraudulent on their end?
c) If I have a case on this, is there any recommended lawyers who might be able to begin proceedings by issuing a formal lawyer letter to this company?
Appreciate any help you can share on this. Thanks!!!