Overstock.com 2010 Annual Report Download - page 123

Download and view the complete annual report

Please find page 123 of the 2010 Overstock.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

Table of Contents
Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
14. COMMITMENTS AND CONTINGENCIES (Continued)
On September 23, 2009 SpeedTrack, Inc. sued us along with 27 other defendants in the United States District Court in the Northern District of
California. We are alleged to have infringed a patent covering search and categorization software. We believe that certain third party vendors of products and
services sold to us are contractually obligated to indemnify us in this action. On November 11, 2009, the parties stipulated to stay all proceedings in the case
until resolution of a the United States Patent and Trademark Office had concluded and resolved a reexamination of the patent in question, and also until a
previously filed infringement action against Wal-Mart Stores, Inc. and other retailers resulted either in judgment or dismissal. Subsequently, the parties agreed
to extend the time for defendants' complaint answer until 21 days following a court order to lift the stay to which the parties stipulated. The nature of the loss
contingencies relating to claims that have been asserted against us are described above. However no estimate of the loss or range of loss can be made. We
intend to vigorously defend this action and pursue our indemnification rights with our vendors.
On or about September 25, 2009 Alcatel-Lucent USA, Inc. filed suit against us and 12 other defendants in the United States District Court in the Eastern
District of Texas. We are alleged to have infringed three Internet-related and search software patents. We believe that certain third party vendors of products
and services sold to us are contractually obligated to indemnify us in this action. We have answered the complaint. The case is in its discovery stages. The
nature of the loss contingencies relating to claims that have been asserted against us are described above. However no estimate of the loss or range of loss can
be made. We intend to vigorously defend this action and pursue our indemnification rights with our vendors.
On or about January 15, 2010 Nancy Davis LLC filed suit against us in the United States District Court in the Central District of California for trademark
infringement for heart-shaped, peace sign jewelry. Certain third party vendors of such products sold to us we contractually obligated to indemnify us in this
action. On November 3, 2010 we settled the action for a nominal amount. The case has been dismissed.
On May 11, 2010 Site Update Solutions, LLC filed suit against us and 34 other defendants in the United States District Court in the Eastern District of
Texas for infringement of a patent claiming "a process for maintaining ongoing registration for pages on a given search engine . . . a method to actively cause
an updating of a specific Internet search engine database regarding a particular WWW resource." We have answered the complaint. The case is in its early
stages. The nature of the loss contingencies relating to claims that have been asserted against us are described above. However, no estimate of the loss or
range of loss can be made. We intend to vigorously defend this action and pursue our indemnification rights with our vendors.
On July 2, 2010 AdjustaCam LLC filed suit against us and 59 other defendants in the United States District Court in the Eastern District of Texas for
infringement of a patent covering hinged apparatuses for supporting cameras. We believe that if called upon to defend the action, certain third party vendors
of such devices sold to us are contractually obligated to indemnify us in this action. We have answered the complaint and counterclaimed. The case is in its
early stages. The nature of the loss contingencies relating to claims that have been asserted against us are described above. However, no estimate of the loss or
range of loss can be made. We intend to vigorously defend the action and pursue our indemnification rights with our vendors.
On August 4, 2010 EON Corp. IP Holdings, LLC filed suit against us and 16 other defendants in the United States District Court in the Eastern District
of Texas for infringement of a patent covering a
F-34