Conflict between Mi Technovation and Edelteq Holdings heats up over alleged breach of intellectual property rights


THE legal dispute between Mi Technovation Bhd (Mi Technovation) and Edelteq Holdings Bhd (Edelteq) has escalated, with the conflict centering around allegations of breach of intellectual property rights.

The tension between the two companies reached a new level as Mi Technovation filed a writ against Edelteq and its ED and group CEO, Chin Yong Keong, along with several other defendants.

The dispute, which was brought to the Penang High Court on July 19, 2023, involves claims of breach of confidential information, copyright infringement, patent infringement, conspiracy to injure, and unlawful interference with trade.

The nine defendants named in the lawsuit include Edelteq Holdings, Edelteq Technologies Sdn Bhd, Edel Technology (M) Sdn Bhd, Edelteq Ventures Sdn Bhd, Camyang Enterprise Sdn Bhd, Dysteq Technique Sdn Bhd, as well as three resigned employees, including Chin, Tan Joo Hung, and Lee Kim Loon.

The conflict has drawn significant attention, particularly due to the prominent position of Chin as the ED and group CEO of Edelteq.

Chin has fervently denied the allegations brought forth by his former employer, Mi Technovation.

He asserted that the claims regarding his employment history are “baseless and unwarranted.”

Chin has taken a firm stance and has enlisted legal representation to counter the accusations, citing defamation.

At the core of the dispute lies the circumstances of Chin’s departure from Mi Technovation in March 2019.

He contends that his exit was a result of a major organisational restructuring, which substantially diminished his duties, authority, and scope of work.

Chin believes that this restructuring effectively constituted constructive dismissal by Mi Technovation.

In response, he sought reinstatement under Section 20 of the Industrial Relations Act.

However, Chin later decided to withdraw his reinstatement claim in July 2019, as he aimed to focus on his new business venture with Edelteq Ventures.

He maintains that Mi Technovation was duly informed of his decision to withdraw the claim.

In retaliation, Mi Technovation filed a lawsuit against Chin and the other defendants, alleging that Edelteq’s prospectus contained misleading information about Chin’s departure from the company.

According to Mi Technovation, the prospectus did not adequately disclose material facts, including the repudiation of Chin’s employment contract.

The company claims that an independent investigative committee found no basis for Chin’s claims and ordered him to return to work, but he did not report for duty and withdrew his representation without informing the company.

To further strengthen its case, Mi Technovation obtained an Anton Piller Order from the Penang High Court on July 27, 2023.

The order grants the company’s solicitors and independent experts the authority to access the defendants’ corporate premises and search for specific items relevant to the case.

The execution of the Anton Piller Order began on July 31, 2023, and remains ongoing.

In light of the sensitive nature of the proceedings and the application for the Anton Piller Order, Edelteq Holdings is preparing to make a comprehensive announcement to Bursa Malaysia Securities once the Anton Piller Order process concludes.

The Penang High Court has scheduled August 7, 2023, as the return date for the Anton Piller Order application.