SanDisk 2004 Annual Report Download - page 17

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Table of Contents
Mr. Chan held marketing and engineering positions at Chips and Technologies, Inc., Signetics, and Delco Electronics. Mr. Chan was
one of the principal organizers of the CompactFlash Association (CFA) and the MultiMediaCard Association (MMCA). He is an
officer and board member of the CFA and a board member of the MMCA. He holds a B.S. in Electrical and Computer Engineering
from the University of California, Santa Barbara and an M.B.A. from Santa Clara University.
Judy Bruner has been our Chief Financial Officer and Executive Vice President Administration since June 2004. She served as a
member of our board of directors from July 2002 to July 2004. Ms. Bruner has over 25 years of financial management experience,
including serving as Senior Vice President and Chief Financial Officer of palmOne, Inc., a provider of handheld computing and
communications solutions, from September 1999 until June 2004. Prior to palmOne, Ms. Bruner held financial management positions
with 3Com Corporation, Ridge Computers and Hewlett Packard. Ms. Bruner also serves on the board of directors of Ciphergen
Biosystems, Inc. Ms. Bruner holds a B.A. in Economics from the University of California, Los Angeles and an M.B.A. from
Santa Clara University.
ITEM 2. PROPERTIES
Our principal facilities are located in Sunnyvale, California. We lease three adjacent buildings comprising approximately
205,000 square feet. These facilities house our corporate offices, the majority of our engineering team, as well as a portion of our
sales, marketing, operations and corporate services organizations. We occupy this space under lease agreements that expire from
November 2005 through July 2006. We believe that our facilities will be adequate to meet our near term needs and that additional
space will be available as required. We also lease sales offices in the United States, Japan, Germany, the Netherlands, Hong Kong,
Scotland and Sweden, operation support offices in Taichung, Taiwan and Dongguan, Shenzhen and Shanghai, China and design
centers in Tefen, Israel, Petah Tikva, Israel and East Kilbride, Scotland.
ITEM 3. LEGAL PROCEEDINGS
From time to time, it has been and may continue to be necessary to initiate or defend litigation against third parties. These and
other parties could bring suit against us. See “Item 7−Management’s Discussion and Analysis of Financial Condition and Results of
Operations−Factors That May Influence Future Results.”
On or about August 3, 2001, the Lemelson Medical, Education & Research Foundation, or Lemelson Foundation, filed a
complaint for patent infringement against us and four other defendants. The suit, captioned Lemelson Medical, Education, & Research
Foundation, Limited Partnership vs. Broadcom Corporation, et al., Civil Case No. CIV01 1440PHX HRH, was filed in the United
States District Court, District of Arizona. On November 13, 2001, the Lemelson Foundation filed an amended complaint, which made
the same substantive allegations against us but named more than twenty−five additional defendants. The amended complaint alleges
that we, and the other defendants, have infringed patents held by the Lemelson Foundation pertaining to bar code scanning
technology. By its complaint, the Lemelson Foundation requests that we be enjoined from our allegedly infringing activities and seeks
unspecified damages. The case as to us was stayed pending the outcome of litigation in the District Court of Nevada related to the
same Lemelson bar code scanning patents asserted against us. In early 2004, the Nevada Court ruled that the Lemelson bar code
patents (as well as other Lemelson patents) were invalid, not infringed and unenforceable. Lemelson has appealed the Nevada court’s
ruling to the United States Court of Appeals for the Federal Circuit.
On October 31, 2001, we filed a complaint for patent infringement in the United States District Court for the Northern District of
California against Memorex Products, Inc., Pretec Electronics Corporation, Ritek Corporation, and Power Quotient International Co.,
Ltd. In the suit, captioned SanDisk Corp. v. Memorex Products, Inc., et al., Civil Case No. CV 01−4063 VRW, we seek damages and
injunctions against these companies from making, selling, importing or using flash memory cards that infringe our U.S. Patent
No. 5,602,987. The court granted summary judgment of non−infringement in favor of defendants Ritek, Pretec and Memorex and
entered judgment on May 17, 2004. The rulings do not affect 12