Adobe 2003 Annual Report Download - page 26

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26
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 with the exception of our property in India,
where we own the building and lease the land. All properties are leased under operating leases. Such leases expire at
various times through 2091. The annual base rent expense for all facilities (including operating expenses, property
taxes, and assessments) is currently approximately $32.4 million and is subject to annual adjustments as well as
changes in interest rates.
Location
Approximate
Square
Footage Use
North America:
345 Park Avenue
San Jose, California, USA
360,000
Research, product development, sales and
marketing
321 Park Avenue
San Jose, California, USA
280,000
Research, product development, sales and
marketing
151 Almaden Boulevard
San Jose, California, USA
270,000
Administration
801 N. 34th Street-Waterfront
Seattle, WA 98103-88
255,000
Product development, sales, marketing,
technical support, and administration
560 Rochester St.
Ottawa, Ontario Canada K1S 5K2
152,000
Product development, sales, marketing,
technical support, and administration
India:
Adobe Towers, 1 – 1A, Sector 25A
Noida, 201301, U.P. India
100,000
Product development
Japan:
Gate City Ohsaki East Tower
1-11-2 Ohsaki, Shinagawa-ku
Tokyo 141-0032 Japan
38,000
Product development, sales, marketing,
and administration
UK:
3 Roundview Avenue
Stockley Park, Middlesex
21,000
Sales and technical support
In general, all facilities are in good condition and are operating at capacities of 66% and above.
We also lease office space in the United States and various other countries under operating leases. We have one
leased set of offices in San Jose, California that was vacated in connection with the restructuring program
implemented in fiscal 1998. We have subleased the offices but still have a commitment under the lease agreement
until 2007.
ITEM 3. LEGAL PROCEEDINGS
In early 2002, International Typeface Corporation (“ITC”) and Agfa Monotype Corporation (“AMT”),
companies which have common ownership and management, each charged, by way of informal letters to Adobe,
that Adobe's distribution of font software, which generates ITC and AMT typefaces, breaches its contracts with ITC
and AMT, respectively, pursuant to which Adobe licensed certain rights with respect to ITC and AMT typefaces.
AMT and ITC further charged that Adobe violated the Digital Millennium Copyright Act (“DMCA”) with respect
to, or induced or contributed to, the infringement of copyrights in, ITC’s and AMT's TrueType font software.
On September 4, 2002, Adobe initiated arbitration proceedings in London, England (“the London Arbitration”)
against AMT, seeking a declaration that Adobe's distribution of font software that generates AMT typefaces did not