Asus 2008 Annual Report Download - page 219

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The company’ s procurements and sales are not centralized and with a good customer
relationship established; therefore, no risk of procurements and sales centralization.
(X) The impact of massive stock transfer or change by directors, supervisors, and shareholders
with over 10% shareholding, the risk, and the responsive measures:
There was not any massive stock transfer or change by directors, supervisors, and
shareholders with over 10% shareholding in 2008 and up to the date of the annual
report printed.
(XI) The impact of right to operation change on the company, the risk, and the responsive
measures: N/A
(XII) Legal and non-legal events:
1. The company’ s major legal issues, non-legal issues, or administrative lawsuits
settled or in pending:
(1) A Cayman company filed a suit against the Company seeking injunction
prohibiting the Company from using certain specific materials from certain
specific supplier. Taiwan Supreme Court has declared that the legal action
would be effective if this Cayman Company provides $46,000 thousand as
collateral. Nevertheless, the Company had ceased to use the certain specific
materials; therefore, the decision will not damage the Company. In addition,
this Cayman Company also filed a suit against the Company in Taipei District
Court, for $10,000 thousand as compensation for damage. The suit is
currently under investigation in Taipei District Court.
(2) In Aug., 2006, a Japanese company filed a suit against the Company alleging
that the Company was engaged in patent infringement. The suit is currently
under investigation in East Texas Court in the US.
(3) In Jan., 2007, an Australian organization filed a suit against the Company’ s
US subsidiary alleging that the subsidiary was engaged in patent infringement.
The suit is currently under investigation in East Texas Court in the US.
(4) In Jan., 2007, a Japanese company filed a suit against the Company and its US
subsidiary for infringement of intellectual property rights. In May and Sep.,
2007, another plaintiff, an US company, also filed a suit against the Company
and its US subsidiary for patent infringement and violation of trade secrets.
These suits are currently under investigation in Utah Court in the US.
(5) In Sep., 2007, an US company filed a suit against the Company’ s US
subsidiary alleging that the subsidiary was engaged in patent infringement.
The suit is currently under investigation in East Texas Court in the US.
(6) In Mar., 2008, an US patentee filed a suit against the Company’ s US
subsidiary alleging that the subsidiary was engaged in patent infringement.
The suit is currently under investigation in East Texas Court in the US.
(7) In Sep., 2008, an US patentee filed a suit against the Company’ s US
subsidiary alleging that the subsidiary was engaged in patent infringement.
The suit is currently under investigation in East Texas Court in the US.
(8) In Oct., 2008, an US patentee filed a suit against the Company’ s US
subsidiary alleging that the subsidiary was engaged in patent infringement.
The suit is currently under investigation in North California Court in the US.
(9) In Dec., 2008, an US company filed a suit against the Company alleging that
the Company was engaged in patent infringement. The suit is currently
under investigation in United States International Trade Commission.
(10) In Nov., 2008, an US company filed a suit against the Company alleging that
the Company was engaged in patent infringement. The suit is currently
under investigation in United States International Trade Commission.