DIRECTV 2009 Annual Report Download - page 48

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DIRECTV
We face risks arising from the outcome of various legal proceedings.
We are involved in various legal proceedings, including those arising in the ordinary course of
business and those described under the caption ‘‘Legal Proceedings’’ in Item 3. Such matters include
investigations and legal actions by state attorneys general where regulators may seek monetary damages
and may also seek to require or prohibit certain actions by the Company with regard to its current or
potential customers. While we do not believe that any of these proceedings alone or in the aggregate
will have a material effect on our consolidated financial position, an adverse outcome in one or more
of these matters or the imposition of conditions by regulators on the conduct of our business could be
material to our consolidated results of operations and cash flows for any one period. Further, no
assurance can be given that any adverse outcome would not be material to our consolidated financial
position.
We may face other risks described from time to time in periodic reports filed by us with the SEC.
We urge you to consider the above risk factors carefully in evaluating forward-looking statements
contained in this Annual Report. The forward-looking statements included in this Annual Report are
made only as of the date of this Annual Report and we undertake no obligation to publicly update
these forward-looking statements to reflect subsequent events or circumstances.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
As of December 31, 2009, we had approximately 230 owned and leased locations operating in the
United States and Latin America. The major locations of the DIRECTV U.S. segment include eight
administrative offices, two broadcast centers and six call centers. The major locations of the DIRECTV
Latin America segment include 10 administrative offices, four broadcast centers and eight call centers.
We consider our properties adequate for our present needs.
ITEM 3. LEGAL PROCEEDINGS
(a) Material pending legal proceedings, other than ordinary routine litigation incidental to the
business, to which we became or were a party during the year ended December 31, 2009 or subsequent
thereto, but before the filing of the report, are summarized below:
Intellectual Property Litigation. We are a defendant in several unrelated lawsuits claiming
infringement of various patents relating to various aspects of our businesses. In certain of these cases
other industry participants are also defendants, and also in certain of these cases we expect that any
potential liability would be the responsibility of our equipment vendors pursuant to applicable
contractual indemnification provisions. To the extent that the allegations in these lawsuits can be
analyzed by us at this stage of their proceedings, we believe the claims are without merit and intend to
defend the actions vigorously. The final disposition of these claims is not expected to have a material
adverse effect on our consolidated financial position, but could possibly be material to our consolidated
results of operations of any one period. No assurance can be given that any adverse outcome would not
be material to our consolidated financial position.
Finisar Corporation. As previously reported, we were successful in 2008 getting the jury verdict in
the Finisar case vacated on appeal. The original verdict found the patent to be valid and willfully
infringed, and the jury awarded approximately $79 million in damages. The trial court increased the
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