Epson 2016 Annual Report Download - page 120

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119
39. Contingencies
Material litigation
In general, litigation has uncertainties and it is difficult to make reliable judgments for the possibility of an outflow
of resources embodying economic benefits and to estimate the financial effect.
Provisions are not recognised either if an outflow of resources embodying economic benefits is not probable or to
estimate the financial effect is not practicable. Epson was contending the following material actions.
(1) The liquid crystal display price-fixing cartel
The civil actions have been brought against the Company and certain of its consolidated subsidiaries by customers
in the U.S., regarding allegations of involvement in a liquid crystal display price-fixing cartel.
Moreover, the Company and certain of its consolidated subsidiaries are currently under investigation by a certain
anti-monopoly-related authority.
(2) The civil action on copyright fee of ink-jet printers
In June 2010, Epson Europe B.V. (“EEB”), a consolidated subsidiary of the Company, brought a civil suit against
La SCRL Reprobel (“Reprobel”), a Belgium-based group that collects copyright royalties, seeking restitution for
copyright royalties for multifunction printers. After that, Reprobel also brought a civil suit against EEB. As a result,
these two lawsuits were adjoined. EEB’s claims were rejected at the first trial, but EEB, dissatisfied with the
decision, intends to appeal.
Verwertungsgesellschaft Wort (“VG Wort”), the organization for collecting copyright fees on behalf of copyright
holders in Germany, filed a civil lawsuit in January 2004 against Epson Deutschland GmbH (“EDG”), a
consolidated subsidiary of the Company, seeking payment of copyright fees for single-function printers. While
taking the court procedures, EDG had settlement discussions with VG Wort through Bundesverband
Informationswirtschaft, Telekommunikation und neue Medien e.V. (“BITKOM”), a German business association
of IT industry. Finally, BITKOM and VG Wort reached an agreement to settle, upon which the court dismissed the
case and it was closed.
40. Subsequent Events
Share repurchase
The Company resolved at the meeting of its Board of Directors held on April 28, 2016 to repurchase its own shares
pursuant to Article 156 of the Companies Act as applied by replacing the relevant terms pursuant to Article 165,
Paragraph 3 of the Act.
(1) Reason for the repurchase
To optimize capital efficiency and to further enhance shareholder returns
(2) Class of shares to be repurchased
Ordinary shares
(3) Total number of repurchasable shares
7 million shares (maximum) (1.95% of the total number of issued shares (excluding treasury stock))
(4) Total repurchase cost
10 billion yen (maximum)
(5) Repurchase period
May 2, 2016 - June 30, 2016
(6) Repurchase method
Through securities company using discretionary transactions method