Nikon 2005 Annual Report Download - page 44

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(c) Export Sales
For the years ended March 31, 2005 and 2004
Export sales (A)
North America
Europe
Asia
Other Area
Total
Net sales (B)
Thousands of
U.S. Dollars
2005
$1,497,722
1,292,418
1,631,375
64,520
$4,486,035
$5,945,324
(A)/(B)
29.0%
24.2
19.1
0.7
73.0%
2004
¥146,624
122,583
96,726
3,770
369,703
¥506,378
(A)/(B)
25.2%
21.7
27.5
1.1
75.5%
2005
¥ 160,840
138,793
175,193
6,929
¥ 481,755
¥ 638,468
Millions of Yen, %
Note: “Other Area” consists principally of South and Central America and Oceania.
18. TRADE MATTERS
Nikon Corporation (Nikon), ASML HOLDING N.V. (ASML) and Carl Zeiss SMT AG (SMT) have signed on December 10, 2004, a final agreement
(Final Agreement) for comprehensive settlement of legal proceedings and cross-licensing of patents related to lithography equipment used to
manufacture semiconductor devices in accordance with a Memorandum of Understanding entered into on September 29, 2004 (MOU).
(a) Legal Proceedings of Settlement
On December 21, 2001, Nikon Corporation and its wholly-owned subsidiaries, Nikon Precision Inc. and Nikon Research Corporation of
America filed a complaint in the US International Trade Commission (the “ITC”) against ASM Lithography Holding N.V., and ASM Lithography
B.V. (both Netherlands corporations) and ASM Lithography, Inc., a U.S. sales subsidiary of ASM Lithography Holding N.V. (“ASML”) for an
exclusion order from the ITC to prevent any further importation of stepper and scanner machines (both lithography equipment used to
manufacture semiconductor devices) that were infringing Nikon’s patents in the U.S.
The ITC dismissed Nikon’s request for an exclusion order. Subsequently, Nikon Corporation, Nikon Precision Inc. and Nikon Research
Corporation of America filed a Notice on May 12, 2003 in the Court of Appeales of the Federal Circuit appealing the ITC decision.
Nikon Corporation and its subsidiaries then filed suit for patent infringement against ASM Lithography B.V., ASM Lithography Inc., ASML
Netherlands B.V. and its affiliated companies in the Federal District Court of the Northern District of California (NDCA), and in the Tokyo
District, Seoul District and Suwon District Courts.
As a result of several settlement discussions, Nikon basically agreed to settle the case since it concluded that its goal has been accomplished
in principle. The NDCA allowed SMT to join in the case, and therefore, they are party to the Memorandum of Understanding.
(b) Description of Settlement
The Final Agreement includes payment to Nikon by ASML and SMT. ASML and SMT will pay Nikon a total of US $145 million. An initial pay-
ment of US $100 million was made in November 2004, and the remaining US $45 million will be paid in equal installments in 2005, 2006 and
2007. The total amount of ¥15,879 million (equivalent of US$145 million) payable by ASML to Nikon is treated for accounting purposes as
Special Gains for the period ended March 31, 2005.
The Final Agreement also includes the cross-license between ASML and SMT of patents related to lithography equipment used to manufac-
ture semiconductor devices.
In consideration for such payment to Nikon and the cross-license, Nikon, ASML and SMT withdrew all patent disputes pending between the
parties in Asia and the U.S. in November 2004.