Western Digital 1995 Annual Report Download - page 25

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   Notes to Consolidated Financial Statements (Continued)  .
Future minimum rental payments under non-cancelable operating leases as
of July 1, 1995 are (in thousands):
1996 $ 19,029
1997 13,193
1998 11,334
1999 9,916
2000 8,573
Total future minimum rental payments $ 62,045
Legal Claims
The Company was sued by Amstrad plc (“Amstrad”) in December 1992 under a
complaint that alleges that hard drives supplied by the Company in 1988 and
1989 were defective and caused damages to Amstrad of $186.0 million. The
Company filed a counterclaim for $3.0 million in actual damages plus exemplary
damages in an unspecified amount. The Company believes that it has meritorious
defenses to Amstrad’s claims and intends to vigorously defend itself against the
Amstrad lawsuit.
The Company was sued in March 1993 by Conner Peripherals, Inc.
(“Conner”). The suit alleges that the Company infringes five Conner patents and
seeks damages (including treble damages) in an unspecified amount and injunctive
relief. If Conner were to prevail in its claims, the Company could be enjoined from
using any of the Conner patents found to be valid and infringed that are the sub-
ject of this action as well as held liable for past infringement damages. The amount
of such damages, if any, could be material. The Company believes that it has meri-
torious defenses to Conner’s claims and intends to defend itself against the Conner
lawsuit. The Company has also filed a suit alleging that Conner infringes two of
the Company’s patents.
The Company was sued in December 1994 by Rodime plc (“Rodime”). The
suit alleges that the Company infringes one of Rodime’s patents which relates to
3.5-inch hard drives. Based on the opinion of patent counsel, the Company
believes that the broad claims of the Rodime patent, if scrutinized in court, will
not withstand an attack on validity and believes the Company has not infringed
any valid claim of the Rodime patent. If Rodime were to prevail on its claim, the
Company could be held liable for damages for past infringement. The damages, if
any, are uncertain but could be material. The Company believes that it has merito-
rious defenses to Rodime’s claims and intends to vigorously defend itself against
the Rodime lawsuit.
The Company is also subject to certain other legal proceedings and claims
arising in connection with its business. There can be no assurance that litigation
will not be commenced on one or more of these or other future such claims, and
that, if commenced, all such litigation would be resolved without any material
adverse effect on the Company’s business, consolidated financial position or results
of operations.