Adobe 2006 Annual Report Download - page 39

39
India:
Adobe Towers, 1 – 1A, Sector 25A
Noida, U.P. 201301
200,000 Product development
Salapuria Infinity, 3rd Floor
#5, Bannerghatta Road
Bangalore 560029 56,000 Product development
Japan:
Gate City Ohsaki East Tower
1-11-2 Ohsaki, Shinagawa-ku
Tokyo 141-0032 57,000
Sales, marketing, and product
development
Germany:
Grobe Elbstrable 27
Hamburg 22767 27,000 Product development
UK:
3 Roundwood Avenue
Stockley Park, Uxbridge, UB11 1AY 21,000
Sales, marketing, product development,
and administration
* The total square footage is 348,000, of which we occupy 81,000 square feet, or approximately 23% of this facility.
In general, all facilities are in good condition and are operating at an average capacity of approximately 80%
In addition to the facilities listed above, we also lease other office space in the United States and various
other countries under operating leases. We have one leased set of offices in San Jose, California that was vacated
in connection with the restructuring program implemented in fiscal 1998. We have subleased the offices but still
have a commitment under the lease agreement until mid 2007.
ITEM 3. LEGAL PROCEEDINGS
On September 6, 2002, Plaintiff Fred B. Dufresne filed suit against Adobe, Microsoft Corporation,
Macromedia, Inc. and Trellix Corporation in the U.S. District Court, District of Massachusetts, alleging
infringement of U.S. Patent No. 5,835,712, entitled “Client-Server System Using Embedded Hypertext Tags for
Application and Database Development.” The Plaintiff’s complaint asserts that “defendants have infringed, and
continue to infringe, one or more claims of the ‘712 patent by making, using, selling and/or offering for sale, inter
alia, products supporting Microsoft Active Server Pages technology.” Plaintiff seeks unspecified compensatory
damages, preliminary and permanent injunctive relief, trebling of damages for “willful infringement,” and fees
and costs. We believe the action has no merit and are vigorously defending against it.
On October 13, 2006, a purported shareholder derivative action entitled Steven Staehr v. Bruce R. Chizen, et
al was filed in the Superior Court of California for the County of Santa Clara against certain of the Company’s
current and former officers and directors, and against Adobe as a nominal defendant. The complaint asserts that
stock option grants to executives were priced retroactively by Adobe and were improperly accounted for, and
alleges various causes of action based on that assertion. The complaint seeks payment by the defendants to
Adobe of damages allegedly suffered by it and disgorgement of profits, as well as injunctive relief.
In connection with our anti-piracy efforts, conducted both internally and through the Business Software
Alliance, from time to time we undertake litigation against alleged copyright infringers. Such lawsuits may lead to
counter-claims alleging improper use of litigation or violation of other local law and have recently increased in
frequency, especially in Latin American countries. We believe we have valid defenses with respect to such
counter-claims; however, it is possible that our consolidated financial position, cash flows or results of operations
could be affected in any particular period by the resolution of one or more of these counter-claims.
From time to time, in addition to those identified above, Adobe is subject to legal proceedings, claims,