Citrix 2012 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2012 Citrix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 118

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

28
ITEM 3. LEGAL PROCEEDINGS
Due to the nature of our business, we are subject to patent infringement claims, including current suits against us or one
or more of our wholly-owned subsidiaries alleging infringement by various Citrix products and services. We believe that we
have meritorious defenses to the allegations made in these pending suits and intend to vigorously defend these lawsuits;
however, we are unable currently to determine the ultimate outcome of these or similar matters or the potential exposure to
loss, if any.
In addition, we are a defendant in various litigation matters generally arising out of the normal course of business.
Although it is difficult to predict the ultimate outcomes of these cases, we believe that the ultimate outcomes will not materially
affect our business, financial position, results of operations or cash flows.
On April 11, 2008, SSL Services, LLC, or SSL Services, filed a suit for patent infringement against us in the United States
District Court for the Eastern District of Texas, or the SSL Matter. SSL Services alleged that we infringed U.S. Patent Nos.
6,061,796, or the '796 patent, and 6,158,011, or the '011 patent. We denied infringement and asserted that the patents-in-suit
were invalid. A jury trial was held on SSL Services' claims, and on June 18, 2012, the jury found that we did not infringe the
'796 patent and found that we willfully infringe the '011 patent through the sale and use of certain products. The jury awarded
SSL Services $10.0 million. On September 17, 2012, the court issued a final judgment confirming the jury award of $10.0
million in damages and added $5.0 million in enhanced damages and approximately $5.0 million in prejudgment interest on the
damages award. We do not believe that any of our products infringe the '011 patent, and we believe that the '011 patent is
invalid. Accordingly, no accrual has been made related to this matter. We intend to vigorously appeal the district court's
judgment on the '011 patent.
In addition to the SSL Matter and due to the nature of our business, we are subject to patent infringement claims,
including current suits against it or one or more of its wholly-owned subsidiaries alleging infringement by various Company
products and services, or the Other Matters. We believe that we have meritorious defenses to the allegations made in our
pending cases and intend to vigorously defend these lawsuits; however, we are unable currently to determine the ultimate
outcome of these or similar matters. In addition, we are a defendant in various litigation matters generally arising out of the
normal course of business. Although it is difficult to predict the ultimate outcomes of these cases, we believe that it is not
reasonably possible that the ultimate outcomes will materially and adversely affect our business, financial position, results of
operations or cash flows.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.