Asus 2011 Annual Report Download - page 204

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200
There was not any massive stock transfer or change by directors, supervisors, and
shareholders with over 10% shareholding in 2011 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) In January 2007, a Japanese company filed a lawsuit against the Company and
its US subsidiary for infringement of intellectual property rights, but the
Japanese company has already withdrawn the lawsuit. 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. In January 2012, the Company was judged to compensate for the plaintiff
by the court, but the Company will appeal to a higher court
(2) 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.
(3) 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.
(4) 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.
(5) 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. The related party’s major legal issues, non-legal issues, or administrative lawsuits
settled or in pending: N/A
(XIII) Other significant risks and responsive measures: N/A
(XIV) Risk management policy, structure and function
1. Risk management policy