Asus 2010 Annual Report Download - page 180

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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.
(2) In September 2008, a US patentee filed a lawsuit against the Company’s US subsidiary
alleging that the subsidiary was engaged in patent infringement. The Company had
estimated and recognized the possible expenses for this litigation. In 2010, this patentee
has withdrawn its lawsuit as the parties have reached a settlement.
(3) In July 2009, a US W company filed a lawsuit against the Company and its US subsidiary
for patent infringement of notebooks. In 2010, the Court dismissed the case. The
Company and its subsidiary were dismissed without prejudice.
(4) In July 2009, a US B company filed a lawsuit against the Company’s US subsidiary and
other third parties for patent infringement of flash memory chips. In July 2009, B
company also filed an investigation with the United Sates International Trade
Commission (ITC) against the Company’s suppliers and its customers. In 2010, B
Company and Supplier S have reached a settlement.
(5) In May 2010, as US G Company filed a lawsuit against the Company’s US subsidiary for
patent infringement of notebooks. The case has been settled in 2010.
(6) 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, in a California court, in a Florida court and in a
Shanghai court. 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.
2) To ensure the supply of raw materials, the Company has entered into an agreement with a
supplier for a guaranteed quantity of materials supply at a discount to market price or at agreed
price. The Company prepaid $5,453,742, which was recognized as prepayment as of
December 31, 2010.
3) ASKEY has entered into a sales agreement on September 9, 2010, for disposal of its buildings.
The proceeds amounted to $228,900. Since the building has been leased till August 31, 2011,
the subsidiary will transfer its title after August 31, 2011. As of December 31, 2010, the
subsidiary has received the down payment amounting to $22,890 recorded as receipt in
advance.
4) The Group entered into operating lease contracts for its offices and parking spaces. Future
lease payments under those leases are as follows:
Year Amount
2011 $ 233,083
2012 213,244
2013 129,087
2014 23,254
2015 and after 23,254