Asus 2009 Annual Report Download - page 195
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191
ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Financial Statements
(Continued)
7. Commitments and Contingencies
(1) As of December 31, 2009, the Group’ s outstanding letters of credit were as follows (foreign
currencies are expressed in thousands):
Currency Amount
USD $ 44,639
GBP 9
EUR 497
JPY 3,112,833
NTD 5,141
(2) Guarantee for subsidiaries amounted to $16,601,228.
(3) Lawsuit for infringement of intellectual property rights
A. In October 2009, the Company and IBM entered into a cross license agreement, and all lawsuits
between the Company and IBM ceased with the agreement.
B. In January 2007, a Japanese company filed a lawsuit against the Company and its US subsidiary
for infringement of intellectual property rights. In May and September 2007, another plaintiff, a
US company, also filed a lawsuit against the Company and its US subsidiary for patent
infringement and violation of trade secrets. These lawsuits are currently under investigation in
a Utah court in the US. The outcome of these lawsuits is not certain. The Company
continuously evaluates the possible loss, and a provision has been estimated and recognized in
the books.
C. In September 2008, a US patentee filed a lawsuit against the Company’ s US subsidiary alleging
that the subsidiary was engaged in patent infringement. This lawsuit is currently under
investigation in an East Texas court in the US and its outcome is not certain. The Company
continuously evaluates the possible loss, and a provision has been estimated and recognized in
the books.
D. Several patentees filed lawsuits or investigations for patent infringement against the Company.
These lawsuits or investigations are currently under investigation in a Delaware court, in an
East Texas court, and by the United States International Trade Commission. The outcome of
the lawsuits is not certain. The Company continuously evaluates the possible loss, and a
provision has been estimated and recognized in the books.
E. In December 2007, an American company filed an investigation for patent infringement
against PEGATRON with United States International Trade Commission. The related
investigation has been completed in July 2009. The results of the investigation indicate that
PEGATRON did not infringe the company’ s patents. Both parties agreed to settle the case and