eBay 1998 Annual Report Download - page 17

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17
Item 2: Properties
As of March 24, 1999, the Company’ s principal administrative, marketing and product development facilities
are located in approximately 53,000 square feet of office space in San Jose, California under leases and subleases
that expire between December 1999 and November 30, 2004. In addition, the Company recently entered into a lease
covering approximately 103,000 square feet in two buildings in the same office complex as its existing space. This
lease expires on November 30, 2004, with a five-year renewal option. As a result of the Company’ s acquisition of
Jump, the Company also has facilities in Cincinnati, Ohio. The Company believes that its existing facilities are
adequate to meet its needs for the immediate future and that future growth can be accommodated by leasing
additional or alternative space near its current facilities.
Item 3: Legal Proceedings
On March 24, 1999 the Company was sued by Network Engineering Software, Inc. in the U.S. District Court
for the Northern District of California for the Company’ s alleged willful and deliberate violation of a patent held.
The suit seeks unspecified monetary damages as well as an injunction against the Company’ s operations. It also
seeks treble damages and attorneys’ fees and costs. The Company believes that it has meritorious defenses against
this suit and intends to vigorously defend itself. The Company could be forced to incur material expenses during this
defense, and in the event it were to lose this suit its business would be harmed. eBay is also subject to certain
investigations. See “Risk Factors—Government inquiries may lead to charges or penalties.”
Item 4: Submission of Matters to a Vote of Security Holders
There were no submissions of matters to a vote of security holders during the quarter ended December 31,
1998.