Digital River 2006 Annual Report Download - page 33

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• Our announcement of significant acquisitions, strategic partnerships, joint ventures or capital commit-
ments or results of operations or other developments related to those acquisitions;
• Additions or departures of key personnel; and
• Sales or other transactions involving our common stock or our convertible notes.
In addition, our stock price may be impacted by the short sales and actions of other parties who may
disseminate misleading information about us in an effort to profit from fluctuations in our stock price.
Provisions of our charter documents, other agreements and Delaware law may inhibit potential acquisi-
tion bids for us.
Certain provisions of our amended and restated certificate of incorporation, bylaws, other agreements and
Delaware law could make it more difficult for a third party to acquire us, even if a change in control would be
beneficial to our stockholders.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
The following table summarizes the various facilities that we lease for our business operations:
Description of Use Primary Locations
Square
Footage(1) Lease Expirations
Corporate Office Facilities........ Minnesota 133,000 From 2007 to 2008
Other U.S. Office Facilities ....... California, Colorado, Illinois,
Nebraska, Ohio, Pennsylvania, Utah 62,139 From 2007 to 2011
Non-U.S. Office Facilities ........ Germany, Ireland, Japan, Korea,
Luxembourg, Taiwan, United
Kingdom 65,266 From 2007 to 2026
Off Site U.S. Data Centers ....... California, Minnesota 693 From 2007 to 2008
Off Site non U.S. Data Centers .... China, Germany, Ireland, United
Kingdom 282 From 2007 to 2008
(1) Includes sub-leased space.
We believe our properties are suitable and adequate for our present needs, and we periodically evaluate
whether additional facilities are necessary.
ITEM 3. LEGAL PROCEEDINGS
DDR Holdings, LLC has brought a claim against us and several other defendants regarding US Patents
No. 6,629,135 and 6,993,572, which are owned by DDR Holdings. These patents claim e-commerce
outsourcing systems and methods relating to the provision of outsourced e-commerce support pages having a
common look and feel with a host’s website. The case was filed in the U.S. District Court for the Eastern
District of Texas on January 31, 2006. The complaint seeks injunctive relief, declaratory relief, damages and
attorneys’ fees. We have denied infringement of any valid claim of the patents-in-suit, and have asserted
counter-claims which seek a judicial declaration that the patents are invalid and not infringed. We intend to
vigorously defend ourselves in this matter. On September 22, 2006, DDR Holdings filed an application for
reexamination of its patents based upon the prior art produced by us and the other defendants in the case. As
part of that application, DDR Holdings asserted that this prior art raised a substantial question as to the
patentability of the inventions claimed in the patents. DDR Holdings has also moved to stay its litigation
pending a decision on the reexamination application. We intend to vigorously defend ourselves in this matter.
NetRatings, Inc. has brought a claim against us regarding US Patents Nos. 5,675,510, 6,115,680, 6,108,637,
6,138,155 and 6,763,386, which are owned by NetRatings. These patents claim web analytic and reporting
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