8x8 2013 Annual Report Download - page 28

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ITEM 3. LEGAL PROCEEDINGS
From time to time, we become involved in various legal claims and litigation that arise in the normal course of our operations.
While the results of such claims and litigation cannot be predicted with certainty, we are not currently aware of any such
matters that we believe would have a material adverse effect on our financial position, results of operations or cash flows.
On February 22, 2011, we were named a defendant in a lawsuit, Bear Creek Technologies, Inc. v. 8x8, Inc. et al., along with 20
other defendants. On August 17, 2011, the suit against us was dismissed without prejudice from this lawsuit under Rule 21 of
the Federal Rules of Civil Procedure. On August 17, 2011, we were sued again by Bear Creek Technologies, Inc. in the United
States District Court for the District of Delaware. We believe we have factual and legal defenses to these claims and we are
presenting a vigorous defense. Further, on November 28, 2012, the U.S. Patent & Trademark Office (“USPTO”) initiated a
Reexamination proceeding with a Reexamination Declaration explaining that there is a substantial new question of
patentability, based on four separate grounds, affecting each claim of the patent which is the basis for the complaint filed
against the Company. On March 26, 2013, the USPTO issued a first Office Action in the Reexamination, with all claims of the
’722 patent being rejected on each of the four separate grounds raised in the Request for Reexamination. There is a pending
motion to stay the litigation based on the possibility that at least one of the rejections will be upheld. We cannot estimate
potential liability in this case at this early stage of litigation.
On October 25, 2011, we were named a defendant in a lawsuit, Klausner Technologies, Inc. v. Oracle Corporation et al., along
with 30 other defendants. The lawsuit alleges infringement of a patent that is now believed to be expired. On November 1,
2011, Klausner dismissed the complaint voluntarily and filed new complaints separating the defendants, including a new
Complaint against us. We believe we have factual and legal defenses to these claims and we are presenting a vigorous defense,
and we have filed several motions consistent therewith including a motion to transfer and a motion to dismiss the complaint as
filed on February 23, 2012. On March 21, 2013, Chief Judge Davis granted our Motion to Change Venue, and has thereby
ordered that this case be transferred to the US District Court for the Northern District of California on or after April 4, 2013.
This case been transferred accordingly. We have not answered the complaint. We cannot estimate potential liability in this
case at this early stage of litigation.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES
We completed our initial public offering on July 2, 1997 under the name 8x8, Inc. From that date through April 3, 2000, our
common stock was traded on the NASDAQ National Market, or the NASDAQ, under the symbol "EGHT." From April 4, 2000
through July 18, 2001, our common stock was traded on the NASDAQ under the symbol "NTRG." Since July 19, 2001 our
common stock has traded under the symbol "EGHT." In July 2002, in connection with the transformation of the NASDAQ to a
national securities exchange our listing was transferred to the NASDAQ Capital Market of the NASDAQ Stock Market LLC.
We have never paid cash dividends on our common stock and have no plans to do so in the foreseeable future. As of May 15,
2013, there were 257 holders of record of our common stock.