Ningbo Geosun Electronics v. EML Technologies CA2/4

I. Factual Background

A. The Parties Geosun, located in China, is a manufacturer of lighting products. EML, a California limited liability company, designed and sold halogen work lights and motion- detector lights. Lee and Aronson were the sole owners and members of EML, owning 75 percent and 25 percent, respectively. EML sold its products to large retailers such as Costco, Home Depot, Lowe’s, and Sears. EML filed for bankruptcy in 2012 and was no longer in business at the time of the trial. ID is a California limited liability company formed in September 2009 by Lee, Aronson, and Tim Monroe (“Monroe”), who is not a party to this litigation. ID sells high-end motion-detector lights and L.E.D. security area lighting to large-scale distributors. ID’s products are different from and rely on different technology than EML’s products. At the time of its formation, Lee owned between 70 and 75 percent of

2 ID, Aronson owned 5 percent, and Monroe owned between 20 and 25 percent.1 By the time of trial, Aronson had sold his interest in ID to either Lee or Monroe. B. The Relationship Between EML and Geosun In late 1999 or early 2000, EML and Geosun entered into an agreement to…