Epson 2015 Annual Report Download - page 115

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114
38. Commitments
Commitments for the acquisition of assets were as follows:
39. Contingencies
Material litigation
In general, litigation has uncertainties and it is difficult to make reliable judgments for the possibility of an outflow
of resources embodying economic benefits and to estimate the financial effect.
Provisions are not recognised either if an outflow of resources embodying economic benefits is not probable or to
estimate the financial effect is not practicable. Epson was contending the following material actions.
(1) The liquid crystal display price-fixing cartel
The civil actions have been brought against the Company and certain of its consolidated subsidiaries by multiple
customers in the U.S, regarding allegations of involvement in a liquid crystal display price-fixing cartel.
Moreover, the Company and certain of its consolidated subsidiaries are currently under investigation by the
European Commission and other anti-monopoly-related authorities.
(2) The civil action on copyright fee of ink-jet printers
Verwertungsgesellschaf Wort (“VG Wort”), the organization for collecting copyright fees on behalf of copyright
holders, has brought a civil action against Epson Deutschland GmbH(“EDG”), a consolidated subsidiary of the
Company, to seek payment of copyright fees on single-function printers.
The claim was dismissed by the supreme court. The plaintiff, however, unsatisfied with this ruling, appealed to the
Federal Constitutional Court of Germany. In December 2010, the Federal Constitutional Court ruled that the ruling
of the supreme court violates rights set forth in Article 14 of the constitutional law of Germany. It thus dismissed
the ruling of the supreme court and referred the case back to the supreme court for review. In July 2011, the
supreme court referred the case to the Court of Justice of the European Union, and an inquiry was begun in October
2012. In June 2013, the Court of Justice of the European Union ruled that EU member states can impose levies on
printer and PC manufacturers in order to compensate copyrights holders for unauthorized reproduction of their
work. In response to this, the supreme court judged that printer and PC are liable to copyright levies, in July 2014.
The specific copyright rates are under consideration again by the high court of the Germany.
In June 2010, Epson Europe B.V. (“EEB”), a consolidated subsidiary of the Company, brought a civil suit against
La SCRL Reprobel (“Reprobel”), a Belgium-based group that collects copyright royalties, seeking restitution for
copyright royalties for multifunction printers. After that, Reprobel also brought a civil suit against EEB. As a result,
these two lawsuits were adjoined. EEB’ s claims were rejected at the first trial, but EEB, dissatisfied with the
decision, intends to appeal.
Millions of yen
Thousands of
U.S. dollars
March 31
March 31,
2014
2015
2015
Acquisition of property, plant and equipment
6,167
4,706
39,169
Acquisition of intangible assets
927
1,519
12,640
Total
7,094
6,226
51,809