Asus 2013 Annual Report Download - page 120

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116
There was not any massive stock transfer or change by directors, supervisors, and
shareholders with over 10% shareholding in 2013 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 has filed
with a higher court. The higher court changed the original judgment and the
Company finally won the case. Based on the final outcome of the case, the
Company claimed from the plaintiff for reimbursement of the litigation fee. 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 LAN chip, PCI-Express switch, the patent of Blu-ray, Dynamic
voltage scaling function for solid state disk, DDR, FLASH memory, LCD,
Bluetooth, BIOS, Image chip, thermal management method and device,
Display, Bluetooth HS technology and notebooks, Eee PC, products of
Wireless LAN, products of Wireless telecommunication, router with dual
channel transmission function, and equipments with Andriod system against
the Company. These lawsuits or investigations are currently under
investigation in a California court, in a Texas court, in a Delaware court, in a
Virginia 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 mobile products with switching signals based on the signal strength,
products with the image resizing and scanning format conversion, digital
image processor, interactive video system, communication switch technique,
Tablet PC with user-selectable log in and unlock function, products of Web
Storage, products of display technology, products with buffer memory and
buffer access, SED hard discs, Windows BitLocker function products,
Wireless Router products with antenna connector, radiator of display card,
wireless Internet products with monitor functions, Bluetooth and wireless
communication products, Padfone series products, NOR Flash and XtraROM
chip products, products of auto-rotate for turn on/off functions, GaN LED
products, products with UMTS network devices and multi-core ARM
processor products against the Company. These lawsuits or investigations are
currently under investigation in a Texas court, in a California court, in a
Florida court, in a Delaware court, in a Massachusetts court, in a Germany
court, in a Shanghai court and in a Taiwan intellectual property court. The
Company cannot presently determine the ultimate outcome and effect of these
lawsuits.
(4) Lawsuits for consumer rights: In February 2012, consumer F filed a Company
lawsuit for GPS and WiFi function being interfered due to the design of PAD
case against the Company and its US subsidiary in a Northern California court.