LeapFrog 2002 Annual Report Download - page 28

Available Information
We make our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K,
and all amendments to such reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act,
available (free of charge) on or through our web site located at www.leapfrog.com, as soon as reasonably
practicable after they are filed with or furnished to the SEC.
Item 2. Properties.
Our headquarters are located in Emeryville, California, where we occupy approximately 71,000 square feet
of office space under a lease that expires in January 2006. Our headquarters are used for the operation of our
three business segments. We currently lease approximately 14,500 square feet in Los Gatos, California, for our
engineering, research and development operations related to our three business segments under a lease that
expires in January 2007. We also currently lease approximately 4,500 square feet for our office in Austin, Texas,
expiring in March 2006, which we use for our Education and Training segment. In Hong Kong, we have office
space of approximately 10,800 square feet under leases expiring in February 2004, which is used for all three of
our business segments, and near London, England, we have office space of approximately 2,500 square feet
under a lease expiring in September 2005, which is used for our International segment. Finally, we lease
approximately 9,400 square feet in New York City for use as a trade showroom for all three of our business
segments under a lease that expires in April 2007. We believe that our facilities are adequate for our current
needs, and suitable additional or substitute space will be available in the future to replace our existing facilities, if
necessary, or accommodate expansion of our operations.
Item 3. Legal Proceedings.
Concluded Matters
In the fourth quarter of 2002 and through March 11, 2003, the following proceedings were withdrawn or
dismissed:
LeapFrog Enterprises, Inc. v. Franklin Electronic Publishers, Inc.
In November 2002, the U.S. International Trade Commission, or ITC, granted Franklin Electronic
Publishers, Inc.’s motion to withdraw its complaint and terminate the associated investigation. Franklin had filed
a complaint against us and one of our manufacturers with the ITC, requesting an investigation into whether the
importation, distribution and sale of a number of our products directly infringed, induced infringement or
contributorily infringed one or more claims of Franklin’s patent.
In February 2003, we entered into a settlement agreement and release of all claims with Franklin, and the
northern federal district court of California granted the joint motion by Franklin and LeapFrog to dismiss with
prejudice all of the claims and counterclaims in the patent lawsuit that alleged we had willfully infringed,
actively induced infringement of and contributorily infringed Franklin’s United States Patent No. 5,203,705
patent by making, using, selling and offering for sale a number of our products.
Publications International, Ltd. v. LeapFrog Enterprises, Inc.
In February 2003, we entered into a settlement agreement and release of claims with Publications
International, Ltd., or PIL. As a result of the settlement, we acquired PIL’s rights to the designation LEAP FROG
and LEAP FROG design trademark, and the lawsuit against us in federal court in Illinois alleging that we
infringed PIL’s alleged common law, or unregistered, trademark LEAP FROG for children’s books was
dismissed with prejudice.
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