Garmin 2009 Annual Report Download - page 55

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12,2008,EncyclopaediaBritannicafiledaNoticeofAppealtotheFederalCircuitCourtofAppeals.OnDecember4,
2009,theFederalCircuitissueditsdecisionaffirmingthedistrictcourt’sjudgment.
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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.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.Encyclopaedia
Britannicaalsoassertedthe’018and’437patentsagainstotherpartiesinaseparatelawsuit,Encyclopaedia
Britannicav.MagellanNavigation,Inc.,etal.,CaseNo.07‐CA‐787(LY)(W.D.Tex).
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OnFebruary6,2009,thecourtenteredaschedulingorderenablingalldefendantsinthesecasestofilea
consolidatedJointMotionforSummaryJudgmentofInvalidityofthe’018and’437patentsandstayedall
proceedingspendingthecourt’srulingonthejointmotionforsummaryjudgment.OnFebruary20,2009,the
defendantsfiledaconsolidatedJointMotionforSummaryJudgmentofInvalidityofthe’018and’437patents.On
August3,2009,thecourtissuedaMemorandumOpinionandOrdergrantingthedefendants’consolidatedJoint
MotionforSummaryJudgmentofInvalidityofthe’018and’437patentsandholdingthatthesepatentsare
invalid.OnAugust24,2009,EncyclopaediaBritannicafiledaNoticeofAppealtotheFederalCircuitCourtof
Appeals.GarminInternationalbelievestheFederalCircuitwillaffirmthedistrictcourt’sjudgment.
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SPTechnologies,LLCv.GarminLtd.,GarminInternational,Inc.,TomTom,Inc.,andMagellanNavigation,Inc.
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OnJune5,2008,SPTechnologies,LLCfiledsuitintheUnitedStatesDistrictCourtfortheNorthernDistrict
ofIllinoisagainstGarminLtd.andGarminInternational,Inc.alleginginfringementofU.S.PatentNo.6,784,873
(“the’873patent”).OnJuly7,2008,SPTechnologies,LLCfiledanamendedcomplaintremovingallclaimsagainst
GarminLtd.andalleginginfringementofthe’873patentagainstadditionaldefendantsTomTom,Inc.andMagellan
Navigation,Inc.Garminbelievesthatitshouldnotbefoundliableforinfringementofthe’873patentand
additionallythatthe’873patentisinvalid.OnAugust18,2008,Garminfileditsanswertotheamendedcomplaint
alongwithamotionfordismissalofSPTechnologies,LLC’sclaimsofwillfulandinducementinfringementofthe
’873patent.OnOctober16,2008,thecourtgrantedGarmin’smotionforpartialdismissal,strikingthewillfuland
inducementinfringementallegationsfromtheamendedcomplaint.
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OnJanuary7,2009,GarminfiledanAmendedAnswerandCounterclaimsassertingthe’873patentisnot
infringed,isinvalid,andthattheplaintiffcommittedinequitableconductresultinginunenforceabilityofthe’873
patent.OnFebruary2,2009,codefendantTomTom,Inc.filedaMotionforSummaryJudgmentofUnenforceability
ofthe’873PatentDuetoInequitableConduct.OnSeptember30,2009,theCourtdeniedTomTom,Inc.’sMotion
forSummaryJudgment.OnOctober9,2009,theCourtissuedanorderconstruingtheclaimsofthe’873patent.
OnOctober28,2009,GarminfiledaMotionforSummaryJudgmentofInvalidityofthe’873Patent.OnJanuary6,
2010,SPTechnologies,LLCfileditsresponseandonJanuary20,2010,Garminfileditsreply.Thepartiesawaitthe
court’srulingonGarmin’smotion.Althoughtherecanbenoassurancethatanunfavorableoutcomeofthis
litigationwouldnothaveamaterialadverseeffectonouroperatingresults,liquidityorfinancialposition,Garmin
believesthattheclaimsarewithoutmeritandintendstovigorouslydefendthislawsuit.
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TrafficInformation,LLCv.SonyElectronicsInc.,AsusComputerInternational,BestBuyStores,L.P.,KenwoodU.S.A.
Corporation,Nextar,Inc.,AmericanSuzukiMotorCorporation,TGSP,L.P.d/b/aEmpireSuzuki,andGarmin
International,Inc.
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OnJuly1,2009,TrafficInformation,LLCfiledsuitintheUnitedStatesDistrictCourtfortheEasternDistrict
ofTexasagainstGarminInternational,Inc.alongwithSonyElectronicsInc.,AsusComputerInternational,BestBuy
Stores,L.P.,KenwoodU.S.A.Corporation,Nextar,Inc.,AmericanSuzukiMotorCorporation,andTGSP,L.P.d/b/a
EmpireSuzuki.ThecomplaintagainstGarminInternational,Inc.allegesinfringementofU.S.PatentNo.6,785,606
(“the’606patent”).OnAugust28,2009,GarminInternational,Inc.fileditsAnswerandCounterclaimsasserting