I. EARLY HISTORY OF BIOFEEDBACK DEVICES
Prof. William Charles Nelson (also known as Desiré Dubounet,) is an American alternative medicine practitioner, since retired, the inventor of quantum biofeedback medicine.
Desiré has been active in the field of electro-physiological feedback and biofeedback research since as early as the early 1970s. As a result of her widespread research, Desiré created a complete energy medicine device which was capable of reading the human body’s reactivity to various frequencies and then send back frequencies to carry out changes in the body and through the cybernetic loop.
Desire’s first device, the Electro Physiological Feedback Xrroid (EPFX) system was the first system to be fully FDA registered in 1989.
Following that, Desire continued he research and developed the Quantum Xrroid Consciousness Interface (the “QXCI”) in 1996.
The Xrroid is a term coined by the creator of the device meaning rapid testing of the voltammetric field of mutiples of substances and measuring the electrophysiological reactivity (EPR) of the patient to these voltammetric fields of multiple substances.
In 1992, Desiré moved to Budapest, Hungary. During her first decade in Budapest, Desiré dedicated herself to the improvement of QXCI technology. In 1995, Desiré met Levente Ungváry, a talented software developer, who started to work with Desiré on the development of the QXCI software.
At the time of founding Desiré’s new company HOMEO-DIAGNOSTICA Kft. (a Hungarian Ltd), Desiré met Kornél Tókics who started to work for Desiré as an accountant.
In 1996, Desiré founded ‘MAITREYA Kft.’, a Hungarian company, where she was the majority shareholder, with the task to carry out the necessary commercial / contractual activities in order to support the development of the QXCI system.
II. SCIO: the developed QXCI
As Desiré and Levente continued to develop the QXCI software, they soon realized that the hardware needs to be improved as well. Desiré started a cooperation with Pentavox Kft. (a Hungarian Ltd) in respect of developing a hardware product. As a result of Desiré’s continuous and passionate efforts put in the development, Pentavox developed the first SCIO prototype by September 2002. The SCIO name was created by Desiré, which clearly demonstrates her ingenuity: ‘SCIO’ comes from a Latin word meaning ‘to know’, while at the same time, SCIO is the acronym for Scientific Consciousness Interface Operation.
The SCIO System consisted of the Hardware developed By Pentavox (owner of the related Intellectual Property Rights) and the Software created by Desire’’ (owner of the related Intellectual Property Rights)
The development of the SCIO software was carried out by Levente, main software developer and Zsolt ”Geri” Gerstenbrein, from 1995 and 2000, respectively. Geri built the IT network surrounding the device and took active part in the development of the activation system.
The finalized SCIO device was put on the market in 2003. From the beginning, MAITREYA had been the distributor of the SCIO devices under a non-transferrable and non-sublicensable license granted by Desiré, the owner of all intellectual property assets related to the SCIO device. For certain markets, Desiré appointed her other company (Eclosion Kft., Ltd incorporated in Hungary) as a distributor.
III. The 2000s: Development
During the mid-2000s, the SCIO hardware and software was subject to continuous development and fine-tuning. The development and fine-tuning were carried out by Levente and Geri, the Software Developers as regards the software and Pentavox as regards the hardware. In 2005, a new freelancer software developer joined the team of Software Developers, Andreea Taflan.
By the late 2000s, Eclosion merged into MAITREYA, and started to have financial difficulties so Desiré decided to assign her shares to a third party, and then continue the business activities related to the SCIO system through a different business model. The assignment of Desiré’s share was effectuated on 4 November 2011.
On the very same date, Kornél Tókics took measures to create a new company under the name Mandelay Magyarország Kft. (incorporated in Hungary). The registered owner of Mandelay HU was Mandelay spol. s.r.o., a Czech company solely owned by Kornél Tókics.
Mandelay Kft. employed some of the old team of Desire’s company Maitreya, namely:
- Ibolya Molnar: Broker Manager
- Eva Barota: Shipping
- Edit Barota: Quality System Assistant
- Roland Sereg: Technical Support
- Ferenczi Tibort: Design
Beside her work in Development as an owner of QX WORLD, Andreea had a contract to help out Mandelay Kft as Regulatory Manager, to obtain the CE certification for the products.
Both QX WORLD Kft and Mandelay Kft were appointed distributors of the Biofeedback Systems.
IV. A New Invention: The Eductor
In the meantime, Pentavox kept working on a new and technologically improved hardware with Desiré and QX World, her team of developers. The result was the invention of the EDUCTOR device. The EDUCTOR software was developed by QX World while the EDUCTOR hardware was planned and designed by Pentavox. Under the relevant agreements, all intellectual property regarding the EDUCTOR shall be owned by Desiré, while the hardware/firmware know-how remained with Pentavox.
It was Desiré who first introduced the EDUCTOR device to the public together with the WHPRS website on 14th July 2012, at a Seminar Munich.
V. Desiré’s CONCERNS AND Efforts
In 2014, Desiré started to have serious concerns about the loyalty and honesty of Kornél Tókics after Desiré revealed that Mandelay HU had filed trademark applications for the ‘SCIO’ and ‘EDUCTOR’ signs without Desiré’s consent. However, in order to safeguard her business interests, Desiré decided to try reinstating the confidence within the QX Universe. In this respect, the QX Universe’s cooperating parties laid down the frameworks of their cooperation: they entered into the ‘QX Universe Agreement to Cooperate’.
In the contract, the Parties acknowledged that all rights in, or to, the SCIO IP and the EDUCTOR IP are solely and exclusively held by Desiré. Under the contract, Desiré expressly authorized QX World to purchase SCIO and EDUCTOR devices (without any limitation) directly from Pentavox and sell to end consumers. As Desiré had all rights to instruct the QX Universe parties in any respect regarding the cooperation, Mandelay HU expressly agreed to that term, although it had an exclusive agreement with Pentavox.
As far as the software is concerned, the contract provides that ‘only QX World has direct relation to control software activation, development and management’ and ‘all orders must go through qxsubspace.com for purposes of activation, protecting the software’.
The contract turned out to be more or less useful: the QX Universe parties have usually been cooperating with each other but Desiré still had serious concerns about the loyalty and honesty of Kornél Tókics and his company, Mandelay HU. The other parties have also had issues with Mandelay HU as sometimes Mandelay HU failed to fulfil its payment obligations on time, or not paid at all. For this reason, Pentavox terminated the exclusive nature of its contract on manufacturing with Mandelay HU on 17th March 2017. Furthermore, directly breaching the contract, Mandelay HU regularly sold SCIO and EDUCTOR devices without the licensed software. With respect to these devices, Mandelay HU failed to put the orders through qxsubspace.com and failed to activate the licensed software. In the meantime, Desiré gave clear instructions to Mandelay HU and Kornél Tókics: Mandelay HU is not entitled to carry out any activities not approved by Desiré. Mandelay HU expressly acknowledged that the only legal software for the devices is the Eductor64 as approved by Desiré, and Mandelay HU is not entitled to sell, use or demo any software not approved by Desiré.
As time passed, the QX Universe parties started to have more and more payment and distribution problems with Mandelay HU. In order to circumvent the QX Universe, Mandelay HU founded a new company to abuse marketing authorizations already granted to MAITREYA. In this respect, Mandelay HU fraudulently gave the new company a misleading name: MAITREYA Consulting Kft (Ltd incorporated in Hungary). Therefore, Desiré decided to give another try to reinstate the confidence within the QX Universe. In this respect, the QX Universe parties entered into a new agreement: the QX Intellectual Property License Contract in 2017.
In this contract, the parties expressly acknowledged that ‘Desiré Dubounet is the developer of this Intellectual Property’ and ‘[t]he IP license belongs to [Desire] or other corporation of Consultant’s [Desiré’s] choice. By signing the contract, all parties also agreed that ‘the Intellectual Property is owned by Desiré Dubounet and her authorized license agency’. The contract expressly states that Desiré is the software copyright owner, and the exclusive owner of the trademarks.
The contract also granted more direct control for Desiré over Mandelay HU’s actions and also over Kornél Tókics’s other firm, Biofeedback S.r.l. The contract also granted control over Mandelay HU’s actions to Andreea Taflan being a shareholder and executive officer of QX World. Furthermore, the contract also makes clear that Desiré is the beneficiary owner of all companies where Kornél Tókics and/or Ildikó are registered as shareholders/executives: should Kornél Tókics or Ildikó fail to comply with contract’s terms and conditions, Desiré will have the right to obtain majority control over these companies.
In June 2017, QX World purchased the SCIO hardware/firmware rights and the EDUCTOR hardware/firmware rights from Pentavox. After QX World’s purchase of the said rights, Mandelay HU repeatedly purchased original SCIO / EDUCTOR devices from QX World.
VI. MANDELAY HU’S BREACH OF CONTRACTHowever, the contract was very soon materially breached by Mandelay HU. Mandelay HU started to send false statements to SCIO/EDUCTOR buyers regarding the history and the ownership of the intellectual property regarding the products. Mandelay HU falsely stated that the SCIO/EDUCTOR devices have been invented and developed by ‘the firms under my [Kornél Tókics] control’ and the intellectual property rights in, and to, these devices and the software were assigned by MAITREYA to Mandelay. Mandelay HU also falsely stated that QX World sells ‘fake devices’ and the ‘slavish imitations’ of SCIO / EDUCTOR.
These statements are clearly false, as the SCIO/EDUCTOR devices had been invented by Desiré herself, and the software/hardware development and fine-tuning has always been carried out under Desiré’s control. Kornél Tókics has never had control over the companies carrying out the development. Furthermore, MAITREYA has never assigned the IP rights to Mandelay HU since (1) MAITREYA was not the owner of the IP rights, it only had a license from Desiré, (2) the license granted by Desiré to MAITREYA was non-transferrable, (3) the license granted by Desiré to MAITREYA automatically terminated on 4 November 2011 when Desiré lost majority control over the company. Consequently, MAITREYA had no right to assign any IP assets to Mandelay HU on 30 December 2011. In fact, the said assignment agreement only relates to the SCIO device’s CE certification and the agreement had no provisions regarding any other rights. Furthermore, Mandelay HU has been purchasing SCIO / EDUCTOR devices from QX World, and this fact clearly indicates that QX World’s SCIO / EDUCTOR devices are original licensed products. In this respect, Mandelay falsely states that QX World’s SCIO / EDUCTOR devices would be ‘fake’ products or ‘slavish imitations’.
The truth is that Kornél Tókics abused Desiré’s trust in him, circumvented Desiré and her companies, and now tries to expropriate Desiré’s intellectual property. Mandelay HU also acted in bad faith and try to expropriate Desiré’s software rights: Mandelay HU drafted a permission notice on authorizing Mandelay HU to develop a new software on the basis of the original EDUCTOR software. However, Desiré never signed this permission notice as she did not have an intention to release the software rights. In the end, Mandelay HU came out with a ‘signed’ version of the permission notice (with different wording) but the signature above the name Desiré Dubounet is not hers, Desiré Dubounet has never signed such a document.
As regards intellectual property, Mandelay HU has always been only a distributor and commercial agent of Desiré and her company. Mandelay HU filed all SCIO or EDUCTOR related trademark applications as an agent, without any permission from Desiré being the rightful owner of these marks. Now, as Kornél Tókics and his company Mandelay HU tries to expropriate Desiré’s intellectual property and hinder Desiré and QX World in doing business with the original SCIO EDUCTOR devices, Desiré decided to proceed against Mandelay HU’s unlawful activities, and obtain her rightful ownership in the trademarks filed by Mandelay HU.
For more information on the current situation, please feel free to contact us anytime.