Memorex 2011 Annual Report Download - page 18

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On January 11, 2011, we signed a patent cross-license agreement with SanDisk to settle two patent cases filed by
SanDisk in Federal District Court against our flash memory products, including USB drives and solid state disk (SSD) drives.
Under the terms of the cross-license, we will pay SanDisk royalties on certain flash memory products that were previously not
licensed. The specific terms of the cross-license are confidential. The cross-license agreement required us to make a
one-time payment of $2.6 million in 2011, which was included in litigation settlement expense in the Consolidated Statements
of Operations during 2010.
On June 19, 2009 Advanced Research Corp. (ARC) sued Imation in Ramsey County District Court for breach of contract
relating to a supply agreement under which we purchased our requirements for magnetic heads to write servo patterns on
magnetic tape prior to sale of the finished cartridges, requesting the court to order that Imation pay damages and return the
purchased heads to ARC. In September 2011 we agreed to a settlement by which we agreed to pay ARC $2.0 million, which
was included in litigation settlement expense in the Consolidated Statements of Operations during 2011.
See Note 15 to the Consolidated Financial Statements for further information.
Item 4. Mine Safety Disclosures.
Not Applicable.
15