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Table of Contents
Technology License Arrangements
We did not incur any expenses related to technology license arrangements in the years ended December 31, 2010 and 2008.
During the year ended December 31, 2009, we entered into a $2.5 million arrangement to license software technologies that we may
integrate into certain future products. At that time, we had not yet established the technological feasibility of these products, and we did not
believe the software had an alternative future use. As such, we expensed the entire technology license arrangement amount of $2.5 million in the
year ended December 31, 2009.
Litigation Reserves and Payments
During the year ended December 31, 2010, we recorded a litigation reserve expense of $211,000 for estimated costs related to the
settlement of potential lawsuits or lawsuits already filed against us. For a detailed discussion of our litigation matters, please see Note 9 of the
Notes to Consolidated Financial Statements.
During the year ended December 31, 2009, we recorded net litigation reserves expense of $2.1 million. This expense was primarily
comprised of $2.6 million in estimated costs related to the settlement of various lawsuits against us, which includes $2.1 million related to a one-
time settlement payment made to the Commonwealth Scientific and Industrial Research Organization (“CSIRO”) and $350,000 related to a one-
time settlement payment made to Network-1 Security Solutions, Inc. (“Network-1”). These expenses were offset by a reduction in previously
accrued legal settlement costs of $500,000 due to a summary judgment ruling in our favor on another case.
During the year ended December 31, 2008, we recorded net litigation reserves expense of $711,000. This expense was primarily comprised
of $575,000 in estimated costs related to the settlement of various lawsuits filed against us. Additionally, we incurred an expense of $109,000 for
costs related to the settlement of the patent-infringement lawsuit filed by Hybrid Patents, Inc. (“Hybrid”) against Charter Communications, Inc.
(“Charter”),
where we assumed the defense of the litigation after receiving a request for indemnification from Charter and an expense of $85,000
for costs related to the settlement of the patent-infringement lawsuit filed by Linex Technologies, Inc. against us. These expenses were offset by
a reduction in previously accrued legal settlement costs of $58,000.
Interest Income and Other Income (Expense)
Interest income represents amounts earned on our cash, cash equivalents and short-term investments.
Other income (expense), net, primarily represents gains and losses on transactions denominated in foreign currencies and other
miscellaneous expenses.
48
Year Ended December 31,
2010
2009
2008
(In thousands)
Interest income and other income (expense)
Interest income, net
$
426
629
4,336
Other income (expense), net
(564
)
(128
)
(8,384
)
Total interest income and other income (expense)
$
(138
)
501
(4,048
)