Acer 2007 Annual Report Download - page 106

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103
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(b) In March, 2007, Hewlett-Packard Development Company (HP) filed a complaint against the
Company and the U.S. subsidiary, Acer America Corporation (AAC), in the United States District
Court for the Eastern District of Texas and the U.S. International Trade Commission over alleged
patent infringements. The Company and AAC also filed a counterclaim against HP for four
incidents of infringing Acer’s patents on July 19, 2007 (U.S. Eastern time). The Company also
filed patent infringement complaints with the U.S. District Court for the Western District of
Wisconsin and the International Trade Commission against HP on October 30, 2007 (U.S. time).
The Company has hired lawyers from U.S. law rms to represent it in the HP patent lawsuits.
Currently, the effect of the lawsuits on the Company’s nancial statements is yet to be determined,
but the lawsuits will not negatively impact the Company’s business operations. In addition, in
May 2007, AAC brought legal action against three suppliers, Hon Hai Precision Industry, Quanta
Computer, Inc., and Wistron Corporation, in the United States District Court for the Eastern
District of Texas over the collateral responsibility as stated in the suppliers’ contracts.
(c) Others
(1) As of December 31, 2006 and 2007, the Company had provided outstanding stand-by letters of
credit totaling NT$202,566 and NT$133,085, respectively, for bidding on sales contracts and
for customs duty contract implementation.
(2) The Consolidated Companies have entered into several operating lease agreements for
warehouses, land and ofce buildings. Future minimum lease payments were as follows:
warehouses, land and office buildings. Future minimum lease payments were as follows:
Year NT$ US$
2008 530,435 16,354
2009 367,876 11,342
2010 182,228 5,618
2011 65,218 2,011
2012 and thereafter 124,679 3,844
1,270,436 39,169
8. Signicant Loss from Casualty: None
9. Subsequent Events
The directors of the Company in a meeting held on March 3, 2008, passed a resolution to acquire
E-TEN Information Systems Co., Ltd. (“E-TEN”) by issuing the Company’s shares in exchange for
E-TEN shares. After the acquisition, E-TEN will become a wholly owned subsidiary of the Company.
The acquisition has also been approved by the directors of E-TEN. Under the terms of the acquisition
agreement, Acer Inc. will offer a share exchange with ratio of 1:1.07 for all the outstanding shares of