Harman Kardon 2008 Annual Report Download - page 36

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18
We believe the lawsuit, which is still in its earliest stages, is without merit and we intend to vigorously
defend against it.
Siemens vs. Harman Becker Automotive Systems GmbH.
In October 2006 Harman Becker received notice of a complaint filed by Siemens AG against it with the
Regional Court in Düsseldorf in August 2006 alleging that certain of Harman Becker’s infotainment
products including both radio receiver and Bluetooth hands free telephony functionality, infringe upon a
patent owned by Siemens. In November 2006 Harman Becker filed suit with the German Federal Patent
Court in Munich to nullify the claims of this patent.
On August 14, 2007, the court of first instance in Düsseldorf ruled that the patent in question had been
infringed and ordered Harman Becker to cease selling the products in question in Germany, and to
compile and submit data to Siemens concerning its prior sales of such products. Harman Becker has
appealed that ruling.
Despite the pending appeal, Siemens AG provisionally enforced the ruling against Harman Becker.
Accordingly, Harman Becker ceased selling aftermarket products covered by the patent in Germany, and
submitted the required data to Siemens AG.
On June 4, 2008 the German Federal Patent Court nullified all relevant claims of Siemens’ patent. As a
result, Harman Becker resumed selling the affected products, and Siemens suspended further attempts to
enforce the patent. Siemens also requested that Harman Becker suspend its appeal of the Düsseldorf
court’s ruling of infringement until the German Federal Patent Court’s nullity ruling has become final.
Harman has consented to this suspension. The written decision of the German Federal Patent Court has
not been issued. Upon receipt of the written decision, Siemens will have one month to appeal.
We intend to continue defending this lawsuit.
While the outcome of any of the legal proceedings described above cannot at this time be predicted with
certainty, we do not expect these matters will materially affect our financial condition or results of
operations.
Other Legal Actions
At June 30, 2008, we were involved in several other legal actions. The outcome of these legal actions
cannot be predicted with certainty; however, management, based upon advice from legal counsel, believes
such actions are either without merit or will not have a material adverse effect on our financial position or
results of operations.