Blackberry 2003 Annual Report Download - page 43

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Research฀In฀Motion฀Limited฀฀|฀฀Incorporated฀Under฀the฀Laws฀of฀Ontario฀(United฀States฀dollars,฀in฀thousands฀except฀per฀share฀data฀or฀as฀otherwise฀indicated)
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For฀the฀years฀ended฀March฀1,฀2003,฀March฀2,฀2002฀and฀February฀28,฀2001
11.฀Commitments฀and฀Contingencies
(a)฀Lease฀commitment฀–฀The฀Company฀is฀committed฀to฀annual฀lease฀payments฀under฀operating฀leases฀
for฀premises฀as฀follows:฀
For฀the฀year฀ending฀฀ ฀ ฀
2004฀ ฀ ฀ ฀฀ ฀ $฀ 1,804฀
2005฀ ฀ ฀ ฀฀ ฀ ฀ 1,615฀
2006฀ ฀ ฀ ฀฀ ฀ ฀ 1,495฀
2007฀ ฀ ฀ ฀฀ ฀ ฀ 1,281฀
2008฀ ฀ ฀ ฀฀ ฀ ฀ 1,191฀
Thereafter฀ ฀ ฀ ฀฀ ฀ ฀ 5,821฀
฀ ฀ ฀ ฀ ฀ ฀ ฀ ฀$฀ 13,207฀
(b)฀Contingency฀–฀In฀addition฀to฀the฀NTP฀matter฀discussed฀in฀note฀14,฀the฀Company฀has฀the฀following฀
contingencies:฀
On฀May฀30,฀2002,฀the฀Company฀was฀served฀with฀a฀motion฀for฀declaratory฀judgment฀wherein฀the฀
United฀States฀District฀Court,฀Northern฀District฀of฀California฀has฀been฀petitioned฀by฀Good฀Technology,฀
Inc.฀(“Good”)฀to฀nd฀that฀one฀of฀the฀Company’s฀U.S.฀patents฀is฀invalid฀or฀not฀infringed฀upon฀by฀
Good’s฀wireless฀handheld฀products฀and฀related฀software.฀On฀February฀3,฀2003,฀the฀Company฀led฀a฀
counterclaim฀against฀Good฀within฀the฀Northern฀District฀Action,฀alleging฀among฀other฀things,฀Good’s฀
infringement฀of฀the฀Company’s฀patent-in-suit,฀and฀seeking฀injunctive฀relief,฀monetary฀damages฀and฀
other฀relief.฀The฀discovery฀process฀is฀ongoing,฀and฀the฀trial฀date฀is฀not฀yet฀scheduled,฀but฀is฀not฀antici-
pated฀to฀occur฀prior฀to฀2004.฀The฀likely฀outcome฀of฀this฀motion฀is฀not฀determinable฀but฀in฀any฀event฀
would฀not฀result฀in฀the฀Company฀being฀required฀to฀pay฀monetary฀damages฀to฀Good.฀Accordingly,฀no฀
amount฀has฀been฀recorded฀in฀these฀nancial฀statements.
During฀the฀second฀quarter฀of฀scal฀2003,฀the฀Company฀led฀several฀complaints฀and฀lawsuits฀against฀
Good฀alleging฀Good’s฀infringements฀on฀a฀number฀of฀the฀Company’s฀patents,฀copyrights,฀trademarks฀
and฀other฀property.฀The฀Company฀has฀asked฀the฀Courts฀for฀injunctions฀against฀Good฀as฀well฀as฀for฀
monetary฀damages฀and฀costs.฀In฀these฀lawsuits,฀the฀Company฀is฀asking฀the฀Court฀for฀injunctive฀relief฀
and฀an฀award฀of฀monetary฀damages.฀In฀addition,฀the฀Company฀asserts฀that฀Good’s฀infringement฀is฀
wilful,฀thus฀allowing฀the฀Court฀to฀award฀enhanced฀monetary฀damages฀as฀well฀as฀attorneys’฀fees฀and฀
costs.฀The฀discovery฀process฀is฀ongoing฀for฀one฀of฀the฀actions฀and฀the฀trial฀is฀not฀anticipated฀to฀occur฀
prior฀to฀the฀fourth฀quarter฀of฀calendar฀year฀2003.฀At฀this฀time,฀the฀likelihood฀of฀recoveries฀and฀the฀
ultimate฀amounts,฀if฀any,฀with฀respect฀to฀all฀of฀the฀Good฀actions฀are฀not฀determinable.฀Accordingly,฀no฀
amount฀has฀been฀recorded฀in฀these฀nancial฀statements.
During฀the฀third฀quarter฀of฀scal฀2003,฀the฀Company฀led฀a฀fourth฀lawsuit฀against฀Good.฀This฀
lawsuit฀has฀been฀led฀in฀the฀Superior฀Court฀of฀the฀State฀of฀California฀for฀the฀County฀of฀Orange.฀In฀
this฀complaint,฀both฀Good฀and฀a฀Good฀Vice฀President฀have฀been฀named฀as฀defendants.฀The฀
complaint฀alleges฀that฀Good฀has฀engaged฀in฀misappropriation฀of฀the฀Company’s฀trade฀secrets,฀
breach฀of฀contract,฀tortuous฀interference฀with฀contracts฀and฀prospective฀economic฀relations,฀unfair฀
competition,฀unjust฀enrichment฀and฀breach฀of฀implied฀duty฀of฀good฀faith฀and฀fair฀dealing.฀By฀way฀
of฀relief,฀the฀Company฀is฀asking฀the฀Court฀for฀injunctive฀relief.฀In฀addition,฀the฀Company฀is฀asking฀the฀
Court฀for฀an฀award฀of฀general,฀special฀and฀punitive฀damages฀for฀Good’s฀unfair฀competitive฀acts฀as฀
well฀as฀attorneys’฀fees฀and฀costs฀to฀the฀Company.฀An฀interim฀injunction฀application฀was฀heard฀and฀
denied฀by฀the฀Court฀in฀April฀2003฀and฀the฀trial฀is฀not฀anticipated฀to฀occur฀prior฀to฀the฀fourth฀quarter฀
of฀calendar฀year฀2003.฀At฀this฀time,฀the฀likelihood฀of฀recoveries฀and฀the฀ultimate฀amounts,฀if฀any,฀with฀
respect฀to฀all฀of฀the฀Good฀actions฀are฀not฀determinable.฀Accordingly,฀no฀amount฀has฀been฀recorded฀in฀
these฀nancial฀statements.