Adobe 2001 Annual Report Download - page 19

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Item 2. Properties
The following table sets forth the location, approximate square footage, and use of each of the
principal properties used by Adobe. We lease or sublease all of these properties. Such leases expire at
various times through January 2025. The annual base rent expense for all facilities (including operating
expenses, property taxes, and assessments) is currently approximately $22.0 million and is subject to annual
adjustment.
Approximate
Square
Location Footage Use
North America: 360,000 Research, product development, sales,
345 Park Avenue marketing and administration
San Jose, California, USA
321 Park Avenue 280,000 Research, product development, sales,
San Jose, California, USA marketing and administration
801 N. 34th Street—Waterfront 254,328 Product development, sales, marketing,
Seattle, WA 98103-88 technical support, and administration
Japan: 37,531 Product development, sales, marketing,
Gate City Ohsaki East Tower and administration
1-11-2 Ohsaki, Shinagawa-ku
Tokyo 141-0032 Japan
Ireland: 11,148 Administration
National Digital Park, Citywest Business Campus
Unit 3100, Block 3096-3100
Dublin, Ireland 24
In general, all facilities are in good condition and are operating at capacities that range from 65% to
100%.
We also lease office space in the United States and various other countries under operating leases.
We have one leased office building in San Jose, California that was vacated in connection with the
restructuring program implemented in the third quarter of fiscal 1998. We have subleased the building but
still have a commitment under this lease agreement until 2007.
Item 3. Legal Proceedings
On August 10, 2000, Adobe filed suit in the U.S. District Court of Delaware against Macromedia, Inc.
(‘‘Macromedia’’) for infringement of U.S. Patent No. 5,546,528 relating to Adobe’s tabbed palette patent.
On September 18, 2000, Adobe amended its complaint to include an additional claim of infringement of
U.S. Patent No. 6,084,597 relating to a method of rasterizing and rendering complex layered compositions
in a movie. The complaint seeks a declaratory and injunctive relief as well as actual and treble damages.
Macromedia denies it infringes Adobe’s patents in its answer to Adobe’s amended complaint.
On September 27, 2000, Macromedia filed counterclaims in the U.S. District Court of Delaware for
infringement of U.S. Patent No. 5,467,443, relating to changing of blended elements and U.S. Patent
Nos. 5,151,998 and 5,204,969, which relates to visual editing of sound waveforms. We believe that the
allegations against Adobe are without merit and intend to vigorously defend ourselves and pursue our
original complaint. The counterclaim seeks a declaratory and injunctive relief as well as actual and treble
damages. This case is currently in the discovery phase. The court has set a trial date for April 29, 2002.
Adobe has denied Macromedia’s counterclaims in its answer to Macromedia’s counterclaims.
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