Asus 2012 Annual Report Download - page 100

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96
!
(IV) The impact of domestic and international policies and law change on the company’s
finance and the responsive measures: None.
(V) The impact of technology change and industrial change on the company’s finance and
the responsive measures:
ASUS constantly strives to be an integrated 3C solution provider (Computer,
Communications, Consumer electronics). Technology change provides the company with
business opportunity for new products. The company was with 13.69 times of inventory
turnover in 2012; apparently, there was not any significant negative impact on finance.
(VI) The impact of industrial image change on business risk management and the responsive
measures:
ASUS has maintained a fine industrial image and there is not any negative report on
the company’s image.
(VII) The expected effect, potential risk, and responsive measures of merger:
The company’s did not have any merger conducted in 2010 and up to the date of the
annual report printed: Not Applicable
(VIII) The expected effect, potential risk, and responsive measures of plant expansion: Not
Applicable
(IX) The risk faced by procurements and sales hub and the responsive measures:
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 2012 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: Not Applicable
(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 May 2007, a US company filed a lawsuit against the Company and its US
subsidiary for patent infringement. In January 2012, the Company was
ordered by the court to compensate the plaintiff, but the Company will appeal
to a higher court. In January 2011, the plaintiff, a US company, also filed a
lawsuit against the Company and its US subsidiary for patent confirmation,
and the lawsuit is currently under investigation.
(2) Several patentees filed lawsuits or investigations for patent infringement
including CD burner software, Image editor software, LAN chip, PCI-Express
switch, WiFi function, the patent of Blu-ray, DCDi technique, Dynamic
voltage scaling function for solid state disk, server of Wireless AV streaming,
DDR, FLASH memory, LCD, Bluetooth, BIOS, Image chip, thermal
management method and device, Display, Bluetooth HS technique, notebooks,
Eee PC, and products of Wireless LAN against the Company. These lawsuits
or investigations are currently under investigation in a California court, in a
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.
(3) Several patentees filed lawsuits or investigations for patent infringement
including products with the image resizing and scanning format conversion,