Autodesk 2007 Annual Report Download - page 87

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2007 Annual Report
In connection with our anti-piracy program, designed to enforce copyright protection of our software
and conducted both internally and through the Business Software Alliance (“BSA”), from time to time
we undertake litigation against alleged copyright infringers or provide information to criminal justice
authorities to conduct actions against alleged copyright infringers. Such lawsuits have led to counter
claims alleging improper use of litigation or violation of other local law and have recently increased in
frequency, especially in Latin America. On March 1, 2002, Consultores en Computación y Contabilidad,
S.C., a Mexican hardware/software reseller and its principals (collectively, “CCC”) filed a lawsuit in the
Mexico Court in the First Civil Court of the Federal District against Autodesk, Adobe Systems, Microsoft
and Symantec (all members of the BSA and collectively the “Defendants”). Ultimately, a court of appeals
held that the Defendants were liable to CCC for “moral” damages, and the court remanded the case to the
First Civil Court for a determination of the amount. On December 13, 2005, the First Civil Court awarded
CCC $90 million in damages. Both the Defendants and the plaintiffs appealed the verdict. In September
2006, the parties entered into a settlement agreement which did not have a material effect on Autodesk’s
financial position, results of operations or cash flows.
During the fourth quarter of fiscal 2007, three shareholder derivative lawsuits were filed against us
and our current directors and officers (as well as certain of our former directors and officers) relating
to our historical stock option practices and related accounting. On November 20, 2006, Autodesk and
current members of our Board were sued in United States Federal District Court for the Northern District
of California in a shareholder derivative action, entitled “Giles v. Bartz, et al.”, Case No. C06-8175. On
December 29, 2006, Autodesk, current members of our Board, and certain current and past executive
officers were sued in United States Federal District Court for the Northern District of California in a
shareholder derivative action, entitled “Campion v. Sutton, et al.”, Case No. C06-07967. This lawsuit was
consolidated into the previously mentioned Giles case and later voluntarily dismissed by the plaintiff
on January 31, 2007. On January 9, 2007, Autodesk, current members of our Board, and current and
former executive officers were sued in the Superior Court for the State of California, County of Marin in
a shareholder derivative action, entitled “Koerner v. Bartz, et al.”, Case No. CV-070112. These actions are
in the preliminary stages and we cannot determine the final financial impact of these matters based on
the facts known at this time. However, it is possible that an unfavorable resolution of the matters could
occur and have a material effect on our future results of operations, cash flows or financial position in a
particular period.
In addition, we are involved in legal proceedings from time to time arising from the normal course
of business activities including claims of alleged infringement of intellectual property rights, commercial,
employment, piracy prosecution and other matters. In our opinion, resolution of pending matters is not
expected to have a material adverse impact on our consolidated results of operations, cash flows or our
financial position. However, it is possible that an unfavorable resolution of one or more such proceedings
could in the future materially affect our future results of operations, cash flows or financial position in a
particular period.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter of fiscal 2007.