I always have a niggling worry when the chinese become involved....

I always have a niggling worry when the chinese become involved. I don't trust them to abide by the rules around IP. Any sort of legal dispute with the chinese can end up absolutely no where.

Agreed, However even if you cannot prevent them from exploiting your IP without proper compensation within China, any infringement outside China (via export) would be enforceable in the relevant country.

So at one level you're potentially leaving them to the domestic market in China but in practical terms, they cannot export to major nations that participate in WIPO without proper compensation. But at a practical level, it would make more sense for the manufacturers in China to simply pay ADO for the IP and keep it simple.

At least, that's how I've rationalised what's happening not just with ADO but other investments that I have. It's still a bet though and it's yet another example of the risk vs reward equations you're constantly doing with a speculative stock like this.