The Naixin Factory in Fuyong (Shenzhen) is the target of a criminal investigation in China.
Attached, is an official letter “in Mandarin” that outlines the criminal complaints made by AVID SZ Technologies, a Shenzhen-based consulting and management firm that oversaw design & engineering, in addition to implementation and management of quality controls.
Translated In English
BY EXPRESS MAIL and EMAIL
Frank Zhao
2nd Floor, Xiezhi Factory,
Building 48, Dayangtian Industrial Zone,
Xinqiao Street, Baoan District, Shenzhen
Shenzhen Naixin Technology Co.
10/20/2022
Subject: Demand Letter
Dear Mr. ZHAO YU:
Duan & Duan Law Firm Beijing Office (the “Firm”) has been engaged to represent AVID
Technology (SZ) Limited (the “Client” or AVID”) over a dispute arising out of a series of actions being taken by you, Naixin (as defined below), against AVID and its consultant, Mr. Jonathan Carfield (“Mr. Carfield”). We issue this letter to you for the purpose of reminding you about serious legal consequences.
1 You are the legal representative of Shenzhen Naixin Technology Co., Limited (“Naixin”).
From July 2021 to early October 2021, pursuant to a business arrangement between
Naixin and AVID, AVID and Mr. Carfield had independent offices in Naixin’s factory
located on the second floor of Xiezhi Factory, Building 48, Dayangtian Industrial Zone,
Xinqiao Street, Baoan District, Shenzhen.
2 On the day of October 7, 2021, without a prior notification, Naixin suddenly prohibited AVID employees from entering the above-mentioned office premises. The Client believes that Naixin kept Mr. Carfield’s laptop and has not returned to him as of today. The laptop was purchased by Mr. Carfield in the amount of RMB 14,332 with the serial number
005208604266 (the “Laptop”).
3 Recently, the client noticed that by accessing the Laptop, you have disclosed to third
parties of a significant amount of important data and confidential information which are the
sole properties of AVID and Mr. Jonathan. This has been verified by an independent third-
party professional firm (the Third Party Firm) engaged by AVID.
4 The Firm reasonably believes that your actions above have violated relevant provisions
under Articles 270, 252 and 285 of the Criminal Law of the People’s Republic of China (the Criminal Law):
4.1 Mr. Carfield’s property rights have been violated, and your actions have met
standards of the Crime of Embezzlement. On October 7, 2021, Naixin prohibited the
Client from entering the office area to retrieve the items, and on October 13, 2021, the Client specifically requested to return the Laptop. Naixin denied this and have not returned it until today. You have been taking possession of someone else’s valuable property, without permission. This constitutes Crime of Embezzlement under Article 270 of the Criminal Law.
4.2 You are suspected of violating Mr. Carfield’s right to freedom of correspondence and,
at the same time, of the Crime of Illegally Obtaining Data of Computer Information System.
4.2.1 Based on an investigation report from the Third Party Firm, you have repeatedly
violated Mr. Carfield’s freedom of correspondence and personal privacy since April 15, 2022. You have been accessing the Laptop without permission, by actions, including, but not limited to frequently operating Mr. Carfield’s private cloud account, logging into Mr. Carfield’s work and private email accounts, downloading large amounts of email correspondence and files, potentially hacking into the AVID’s cloud project management system and exporting a large
amount of data. We have reason believe that these actions constitute Crime of
Infringement upon the Right to Freedom of Correspondence according to Article 252 of the Criminal Law.
4.2.2 Furthermore, your actions are seriously in violation of related laws governing
safety operation of computer, i.e. intruding into a computer information system to obtain confidential data stored, processed or transmitted in the computer information system, which constitutes Crime of Illegally Obtaining Data of Computer Information System pursuant to Article 285 of the Criminal Law.
5 You have disclosed a large amount of important business information about AVID and Mr.
Carfield. The act constitutes unfair competition and disrupts the corresponding market order. AVID is entitled to claim compensation from you and Naixin for its business losses.
5.1 You improperly used the Laptop to download a large number of emails, shared and
disclosed important data and information to AVID’s business competitors.
5.2 According to the evidence shown by the Client to the Firm, the contents disclosed
include, but not limited to, patent applications, business contracts, business strategies, confidential letters with law firms and other valuable information relevant to the Client’s company operations. This has seriously damaged the business interests of the Client and constitutes unfair competition.
6 Please be noted that you have made a cross-border transfer of such information to the
judicial authorities of a foreign country (United States of America) without obtaining related approvals of the relevant Chinese authorities. Such acts are inappropriate under Articles 283 and 284 of the PRC Civil Procedure Law, Articles 32 and 36 of the PRC Data Security Law, and the PRC provisions of the international judicial assistance in civil and commercial matters in accordance with the Hague Convention on Service of Documents and the Hague Convention on the Taking of Evidence. AVID reserves the right to report your actions to the
relevant authorities.
7 Accordingly, on behalf of AVID and its consultant, we solemnly request the following from
you and Naixin:
- Immediately CEASE AND DESIST the above-mentioned infringing acts.
- Return the Laptop immediately.
- Permanently delete all disclosed shared data, files, emails, etc.
- Take active remedial measures for damages already incurred and expected to be
incurred.
8 AVID has authorized the Firm and the Third Party Firm to collect and review relevant
evidence. The Firm will take all possible actions, including but not limited to civil and
criminal procedures under Chinese laws and regulations, to protect the lawful rights of the
Client and pursue the infringer for the violation.
Please contact us immediately if you have any questions regarding this letter.
Very truly yours,
Duan & Duan Law Firm Beijing Office
Jack Ding
Partner
October 20, 2022上海段和段（北京）律师事务所律师函_赵雨.pdf (916.1 KB)
material to come from this, methinks.