Cricket Wireless 2011 Annual Report Download - page 54

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Patent Litigation
DNT
On December 11, 2011, we entered into an agreement with DNT LLC, or DNT, to settle a matter brought
against us in the United States District Court for the Eastern District of Virginia, Richmond Division, for alleged
infringement of U.S. Reissued Patent No. RE37,660 entitled “Automatic Dialing System.” DNT alleged that we
used, encouraged the use of, sold, offered for sale and/or imported voice and data service and wireless modem
cards for computers designed to be used in conjunction with cellular networks and that such acts constituted both
direct and indirect infringement of DNT’s patent. DNT alleged that our infringement was willful, and the
complaint sought an injunction against further infringement, unspecified damages (including enhanced damages)
and attorneys’ fees.
Digital Technology Licensing
On October 31, 2011, we entered into an agreement with Digital Technology Licensing LLC, or DTL, to
settle a matter brought against us and certain other wireless carriers (including Hargray Wireless LLC, or
Hargray Wireless), a company which we acquired in April 2008 and which was merged with and into Cricket in
December 2008) on April 21, 2009 in the United States District Court for the Southern District of New York.
DTL alleged that we and Hargray Wireless sold and/or offered to sell Bluetooth®devices or digital cellular
telephones, including Kyocera and Sanyo telephones, and that such acts constituted direct and/or indirect
infringement of U.S. Patent No. 5,051,799 entitled “Digital Output Transducer.” DTL further alleged that we and
Hargray Wireless directly and/or indirectly infringed its patent by providing cellular telephone service and by
using and inducing others to use a patented digital cellular telephone system by using cellular telephones,
Bluetooth devices, and cellular telephone infrastructure made by companies such as Kyocera and Sanyo. DTL
alleged that the asserted infringement was willful, and the complaint sought a permanent injunction against
further infringement, unspecified damages (including enhanced damages), attorneys’ fees, and expenses. The
action was dismissed on August 24, 2011, subject to the right of the parties to refile the action in the event that
the settlement had not been finalized.
Other Litigation, Claims and Disputes
In addition to the matters described above, we are often involved in certain other matters which generally
arise in the ordinary course of business and which seek monetary damages and other relief. Based upon
information currently available to us, none of these other matters is expected to have a material adverse effect on
our business, financial condition or results of operations.
Item 4. Mine Safety Disclosures
Not applicable.
44