Michael Lookman is suing Nelson acquaintance Warwick Jones after sinking $1.8 million dollars into development of SenSys; technology facilitating remote real-time access to workplace data. Mr Lookman says promises to develop legally enforceable patent rights and trademarks have come to nothing; Mr Jones says the intellectual property is ‘inside his head’ and that Mr Lookman is disrupting efforts to commercialise SenSys.
The High Court was told the two joined forces in December 2016. Through a family trust, Mr Lookman agreed to provide capital for development of Mr Jones ideas. Funding of up to $2.1 million was promised in reimbursement of expenses incurred. Mr Lookman was to handle finances, with an option to later take an equity stake in the Wellington-based business: Design Electronics Ltd. Monthly management meetings were scheduled, with business information shared through a Dropbox account. By late 2017, Mr Lookman was concerned about the lack of progress; no patents had been applied for, or trademarks sought. Their 2016 agreement gives Mr Lookman security over SenSys’ intellectual property. Their business relationship unravelled in an acrimonious fashion. Mr Lookman’s access to financial data was blocked when Mr Jones removed all files from the Dropbox account. Monthly reporting and monthly management meetings stopped. Mr Lookman sued, seeking repayment. The court was told Design Electronics cannot pay. Enforceability of a guarantee given by Mr Jones is before the courts.
Associate judge Mathews said their 2016 agreement is an executory contract; both parties have continuing obligations under the contract. It runs until 2021. He ordered Mr Lookman be given access to SenSys’ electronic accounting system, as required by the 2016 agreement.
Lookman Family Trust v. Design Electronics Ltd – High Court (18.12.18)
19.028
Post Judgment Note: A further court hearing in May 2020 determined Mr Jones had failed to provide ongoing financial information as required by the funding agreement with Mr Lookman.
Post Judgment Note: A further court hearing in May 2020 determined Mr Jones had failed to provide ongoing financial information as required by the funding agreement with Mr Lookman.