Asus 2011 Annual Report Download - page 130

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B. 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 for an investigation with the United Sates International Trade Commission (ITC) against
the Company’s suppliers and its customers. In 2011, B Company and Supplier S have reached
a settlement and the court has made a judgment and this case was closed.
C. In February 2011, a US patentee, GO Company, filed a lawsuit with the United States District
Court of Delaware (“Court”) against several defendants including the Company’s client, GA
Company, alleging infringement, among others, of its patent. Based on the contract previously
signed by the Company and GA Company, the Company has a guaranty liability to GO
Company for the event above, and shall bear the lawyer’s fees. The court has currently agreed
to suspend this case, but the Company has already recognized the possible loss 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 Northern California
court, in an East Texas court, in a Delaware court and in United States International Trade
Commission. The Company cannot presently determine the ultimate outcome of these lawsuits,
but has already recognized the possible loss in the books.
E. Several patentees filed lawsuits or investigations for patent infringement against the Company.
These lawsuits or investigations are currently under investigation in an East Texas court, in a
Florida court, in a New Hampshire court, in a Washington court, in a Northern Illinois court, in
a California court, in a Delaware court and in United States International Trade Commission.
The ultimate outcome of these lawsuits cannot be presently determined as of the report date.
(2) To ensure the supply of raw materials, the Company entered into an agreement with a supplier for a
guaranteed quantity of materials supply at a discount to market price or at an agreed price. The
payment was recognized as prepayment of $150,667 and $5,453,742 as of December 31, 2011 and
2010, respectively.
(3) The Company entered into operating lease contracts for its offices and parking spaces. Future lease
payments under those leases are as follows:
8. SIGNIFICANT DISASTER LOSS: NONE.
9. SUBSEQUENT EVENTS:
On February 24, 2012, the Company resolved to increase its capital in UPI Semiconductor Corp.
(UPI). The Group will pool $438,128 to acquire 49.5% shares of UPI, which will then become a
subsidiary as the Group’s total shares in UPI will account for 53% after combining with the original
indirect investment.
10. OTHERS
(1) Financial statement presentation
Certain accounts in the 2010 financial statements were reclassified to conform with the 2011
financial statement presentation.
Year
Amount
2012
207,981$
2013
131,496