Asus 2015 Annual Report Download - page 131

127
127
!
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 2015 and up to the date of the annual report
printed.
(XI) The impact of right to operate 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) Several patentees filed lawsuits or investigations for patent infringement
including LAN chip, the patent of Blu-Ray, thermal management method and
device, multi-core ARM processor products, Google Chrome, GaN LED
products, UMTS network devices, Google Map, notebooks, Eee PC, Wireless,
DVD player subtitle, mobile payment, Bluetooth products, Display Port, Pad,
desktop, router, the function for eliminating noise, wireless support products and
products with UMTS telecommunication devices against the Group. These
lawsuits or investigations are currently under investigation in a California court,
in a Texas court, in a Delaware court, in a Massachusetts court, in a New York
court, United States International Trade Commission, in an India court, in a
Spain court, in a Germany court, in a French court, in a Netherlands court and in
an England court. The Group cannot presently determine the ultimate outcome
of these lawsuits, but has already recognized the possible loss in the financial
statements.
(2) Several patentees filed lawsuits or investigations for patent infringement
including Padfone series, LED of NEXUS 7, lithium battery product, image
thumbnail, smart lock for Android 5.0, Zhuyin input function, multi-window for
dual apps, User interface, DVD player restriction technology, Wireless multiplex
data transmission system, audio signal encoding and decoding system against the
Group. These lawsuits or investigations are currently under investigation in a
Texas court, in a California court, in a Colorado court, in a Germany court, in a
Taiwan court and in a China court. The Group cannot presently determine the
ultimate outcome and effect of these lawsuits.
(3) A plaintiff filed a criminal suit against the subsidiary, ASMEDIA, and a
supplementary civil action against the Company and its subsidiary, ASMEDIA,
for infringement of patents. The Company and its subsidiary, ASMEDIA, have
appointed an attorney to deal with the cases through the legal process and go
through subsequent related matters. The lawsuit is currently under examination