Motorola 2008 Annual Report Download - page 41

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avoidance of liens, fraudulent transfers, equitable subordination and aiding and abetting fraud as part of the
ongoing Adelphia bankruptcy action in the Bankruptcy Court for the Southern District of New York. Plaintiff is
alleging damages in excess of $1 billion against Motorola for the above-stated causes of action. The bankruptcy
action is still pending.
Intellectual Property Related Cases
Tessera, Inc. v. Motorola, Inc., et al.
Motorola is a purchaser of semiconductor chips with certain ball grid array (“BGA”) packaging from
suppliers including Qualcomm, Inc. (“Qualcomm”), Freescale Semiconductor, Inc. (“Freescale Semiconductor”),
ATI Technologies, Inc. (“ATI”), Spansion Inc. (“Spansion”), and STMicroelectronics N.V. (“STMicro”). On
April 17, 2007, Tessera, Inc. (“Tessera”) filed patent infringement legal actions against Qualcomm, Freescale
Semiconductor, ATI, Spansion, STMicro and Motorola in the U.S. International Trade Commission (the “ITC”) (In
the Matter of Certain Semiconductor Chips with Minimized Chip Package Size and Products Containing Same,
Inv. No. 337-TA-605) and the United States District Court, Eastern District of Texas, Tessera, Inc. v. Motorola,
Inc., Qualcomm, Inc., Freescale Semiconductor, Inc. and ATI Technologies, Inc., alleging that certain BGA
packaged semiconductors infringe patents that Tessera claims to own. Tessera is seeking orders to ban the
importation into the U.S. of certain semiconductor chips with BGA packaging and certain “downstream” products
that contain them (including Motorola products) and/or limit suppliers’ ability to provide certain services and
products or take certain actions in the U.S. relating to the packaged chips. On December 1, 2008, an
Administrative Law Judge issued an initial determination that Tessera failed to prove that BGA packaged
semiconductors contained in Motorola products infringe Tessera’s patent claims. On January 30, 2009, the
International Trade Commission issued a notice that it will review the Administrative Law Judge’s initial
determination and a final determination on the merits is expected on or before April 14, 2009. The patent claims
being asserted by Tessera are subject to reexamination proceedings in the U.S. Patent and Trademark Office
(“PTO”).
Motorola is a defendant in various other suits, claims and investigations that arise in the normal course of
business. In the opinion of management, and other than discussed above with respect to the Iridium cases, the
ultimate disposition of the Company’s pending legal proceedings will not have a material adverse effect on the
Company’s consolidated financial position, liquidity or results of operations.
33