Asus 2012 Annual Report Download - page 207

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203
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.
C. Several patentees filed lawsuits or investigations for patent infringement including products
with the image resizing and scanning format conversion, e-mail, location service, digital image
processor, AIO PC, Eee slate, Eee PC, PowerDirector, interactive video system,
communication switch technique, and Tablet PC with user-selectable log in and unlock
function against the Company. These lawsuits or investigations are currently under
investigation in a Texas court, in a California court and in a Florida court. The Company
cannot presently determine the ultimate outcome and effect of these lawsuits.
(2) Lawsuits for consumer rights
In February 2012, consumer F filed a group lawsuit for GPS and WiFi function being interfered
due to the design of Tablet PC case against the Company and its US subsidiary. The lawsuit is
currently being tried in a Northern California court. The Company cannot presently determine the
ultimate outcome and effect of this lawsuit.
(3) A plaintiff filed a lawsuit against ASMEDIA, the subsidiary of the Company, for infringement of
copyright. On August 30, 2012, the Intellectual Property Rights Police Team (IPRP) has searched
the office and executed seizure of related evidence. This litigation is still under the prosecution
search proceedings, and have not yet received any court notice. ASMEDIA has appointed the
attorney to deal with the cases through the legal process and go through subsequent related matters
and to cooperate with authority investigation. As the indictment has not yet been issued, ASMEDIA
cannot presently determine the effect. But ASMEDIA expects the above cases have no material
effect on its operating and financial position.
(4) 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 $0 and $150,667 as of December 31, 2012 and 2011,
respectively.
(5) The Group entered into operating lease contracts for its offices and parking spaces. Future lease
payments under those leases are as follows:
Year Amount
2013 308,146$
2014 145,962
2015 132,011
2016 108,953
2017 and afterwards 95,655