Garmin 2008 Annual Report Download - page 52

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aggregate sum of $200. Garmin International, Inc. has purchased all the outstanding bonds and continues to hold the
bonds until maturity in order to benefit from property tax abatement.
Garmin Corporation owns and occupies a 249,326 square foot facility in Shijr, Taipei County, Taiwan, a
223,469 square foot facility in Jhongli, Tao-Yang County, Taiwan, and an approximately 580,000 square foot
facility in LinKou, Tao-Yang County, Taiwan. In these three facilities Garmin Corporation manufactures all of
Garmin’s consumer and portable aviation products and warehouses, markets and supports products for the Pacific
Rim countries.
Garmin AT, Inc. leases approximately 15 acres of land in Salem, Oregon under a ground lease. This ground
lease expires in 2030 but Garmin AT has the option to extend the ground lease until 2050. Garmin AT, Inc. owns
and occupies a 115,000 square foot facility for office, development and manufacturing use and a 33,000 square foot
aircraft hangar, flight test and certification facility on this land.
Garmin International, Inc. leases 148,320 square feet of land at New Century Airport in Gardner, Kansas
under a ground lease which expires in 2026. Garmin International, Inc. owns and occupies a 47,254 square foot
aircraft hangar, flight test and certification facility on this land which is used in development and certification of
aviation products.
Garmin International, Inc. leases approximately 15,000 square feet of space at 669 North Michigan Avenue
in Chicago, Illinois which is used as a retail store and showroom for Garmin products. This lease expires in
November 2016.
Garmin International, Inc. also leases an additional: (i) 18,392 square feet of office space in Kansas City,
Missouri for a call center operation; (ii) 48,625 square feet of office space in Olathe, Kansas for a call center
operation; (iii) 15,096 square feet of aggregate office space in two buildings in Tempe, Arizona for software
development; (iv) 5,509 square feet of office space in San Francisco, CA for its Garmin Connect division; (v) 8,183
square feet of office space in Diamond Bar, California for software development; (vi) 5,952 square feet of office
space (and 17,536 square feet of land on which the premises sits) in Wichita, Kansas for aviation development and
support; and (vii) 11,857 aggregate square feet in two buildings in South Beach, Oregon for the former Nautamatic
(now TR-1) marine autopilot operations.
Garmin (Europe) Ltd. owns and occupies a 155,000 square foot building located in Totton, Southampton,
England.
Item 3. Legal Proceedings
Encyclopaedia Britannica, Inc. v. Alpine Electronics of America, Inc., Alpine Electronics, Inc., Denso
Corporation, Toyota Motor Sales, U.S.A., Inc., American Honda Motor Co., Inc., and Garmin International, Inc.
On May 16, 2005, Encyclopaedia Britannica, Inc. (“Encyclopaedia Britannica”) filed suit in the United
States District Court for the Western District of Texas, Austin Division, against Garmin International, Inc. and five
other unrelated companies, alleging infringement of U.S. Patent No. 5,241,671 (“the ’671 patent”). On December
30, 2005, Garmin International filed a Motion for Summary Judgment for Claim Invalidity Based on Indefiniteness.
On September 30, 2008, the court issued a Memorandum Opinion and Order granting Garmin International’s
Motion for Summary Judgment for Claim Invalidity Based on Indefiniteness with respect to the ’671 patent. On
October 8, 2008, the court issued an Amended Final Judgment ordering that Encyclopaedia Britannica take nothing
from its action against Garmin International with respect to the ’671 patent and closed that case.
On May 23, 2006, Encyclopaedia Britannica filed an amended complaint claiming that Garmin International
and the other defendants also infringe U.S. Patent No. 7,051,018 (“the ‘018 patent”), a continuation patent of the
‘671 patent, which issued on May 23, 2006. Garmin International believes that it should not be found liable for
infringement of the ‘018 patent and additionally that the ‘018 patent is invalid. On July 25, 2006, Encyclopaedia
Britannica filed a new complaint claiming that Garmin International and the other defendants also infringe U.S.
Patent No. 7,082,437 (“the ‘437 patent”), a continuation patent of the ‘671 patent, which issued on July 25, 2006.
Garmin International believes that it should not be found liable for infringement of the ‘437 patent and additionally
that the ‘437 patent is invalid. Encyclopaedia Britannica has asserted the ’018 and ’437 patents against other parties