Logitech 2006 Annual Report Download - page 109

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A. Major Shareholders
The following table sets forth certain beneficial ownership information as of March 31, 2006 of each
shareholder known by the Company to beneficially own 5% or more of the Company’s registered shares or
ADSs. The Company does not believe it is directly or indirectly owned or controlled by any corporation or by
any foreign government. The voting rights of Logitech shares held by major shareholders are the same as the
voting rights of shares held by all other shareholders. The Company is unaware of any arrangement that might
result in a change in its control.
Name of Beneficial Owner
Shares Beneficially
Owned(1) Percentage(2)
DanielBorel .................................... 6,120,000 6.4%
(1) Beneficial ownership is determined in accordance with rules of the SEC that deem shares to be beneficially
owned by any person who has voting or investment power with respect to such shares. The beneficial
owners have furnished this information. Unless otherwise indicated below, the persons named in the table
have sole voting and sole investment power with respect to all shares shown as beneficially owned, subject
to community property laws where applicable. Registered shares subject to options that are currently
exercisable or exercisable within 60 days after March 31, 2006 are deemed to be issued and beneficially
owned by the person holding such options for the purpose of computing the percentage ownership of such
person but are not treated as issued for the purpose of computing the percentage ownership of any other
person.
(2) Percentage ownership is calculated based on 95,803,310 registered shares issued as of March 31, 2006.
Based on a SEC filing by FMR Corp. on February 14, 2006, FMR Corp. was the beneficial holder under
applicable US securities laws of 7,098,170 Logitech shares and/or ADSs, representing approximately 7.4% of the
Company’s aggregate voting rights, as of December 31, 2005. FMR Corp. is the parent company of Fidelity
Investments, a U.S.-based mutual fund company, and its beneficial ownership is as a result of holdings through
one or more of its funds. On March 21, 2006 FMR Corp. notified the Company that its shareholdings had fallen
to 4.96% of the Company’s aggregate voting rights on March 15, 2006.
Refer also to Item 9C “Markets on which our Shares Trade” for information regarding the number of ADSs
held in the United States.
B. Related Party Transactions
In connection with the Company’s investment in the Anoto Group AB, a Logitech executive was elected to
the Anoto board of directors. Anoto is a publicly traded Swedish high technology company from which Logitech
licenses digital pen technology. The license agreement requires Logitech to pay a license fee for the rights to use
the Anoto technology and a license fee on the sales value of digital pen solutions sold by Logitech. Also, the
agreement includes non-recurring engineering (“NRE”) service fees primarily for specific development and
maintenance of Anoto’s licensed technology. During fiscal year 2006, expenses incurred for license fees to
Anoto were $.5 million. Expenses incurred for license fees and NRE service fees to Anoto were $.7 million in
fiscal year 2005.
Also, in connection with the Company’s investment in A4Vision, Inc. a Logitech executive was appointed
to the A4Vision board of directors. A4Vision is a privately held company from which Logitech licenses face
tracking software. The license agreement requires Logitech to pay a license fee based on the number of its
products sold with A4Vision’s licensed software. During fiscal year 2006, expenses incurred for license fees to
A4Vision were immaterial. Expenses incurred for license fees to A4Vision amounted to $.2 million in fiscal year
2005.
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