Overstock.com 2009 Annual Report Download - page 134

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Table of Contents
Overstock.com, Inc.
Notes to Consolidated Financial Statements (Continued)
16. COMMITMENTS AND CONTINGENCIES (Continued)
On September 23, 2009 the Company along with 27 other defendants was sued by SpeedTrack, Inc. in the United States District Court in the Northern
District of California. The Company is alleged to have infringed a patent covering search and categorization software. The Company believes that certain
third party vendors of products and services sold to the Company are contractually obligated to indemnify the Company in this action. On November 11,
2009, the parties stipulated to stay all proceedings in the case until resolution of a the United States Patent and Trademark Office had concluded and resolved
a reexamination of the patent in question, and also until a previously filed infringement action against Wal-Mart Stores, Inc. and other retailers resulted either
in judgment or dismissal. Subsequently, the parties agreed to extend the time for defendants' complaint answer until 21 days following a court order to lift the
stay to which the parties stipulated. The nature of the loss contingencies relating to claims that have been asserted against us are described above. However no
estimate of the loss or range of loss can be made. The Company intends to vigorously defend this action and pursue its indemnification rights with its vendors.
On or about September 25, 2009 Alcatel-Lucent USA, Inc. filed suit against the Company and 12 other defendants in the United States District Court in
the Eastern District of Texas. The Company is alleged to have infringed three Internet-related and search software patents. The Company believes that certain
third party vendors of products and services sold to the Company are contractually obligated to indemnify the Company in this action. The Company has
answered the complaint. The case is in its early stages. The nature of the loss contingencies relating to claims that have been asserted against us are described
above. However no estimate of the loss or range of loss can be made. The Company intends to vigorously defend this action and pursue its indemnification
rights with its vendors.
On or about November 11, 2009 Downunder Wireless, LLC filed suit against the Company and 21 other defendants United States District Court in the
Eastern District of Texas for infringement of a patent for cell phones with a downward deploying antenna, angled away from the user's face. Other named
defendants are retailers or manufacturers of cell phones which allegedly infringe this patent. The Company believes that certain third party vendors of cell
phone products sold to the Company are contractually obligated to indemnify the Company in this action. The Company has answered the complaint. The
case is in its early stages. The nature of the loss contingencies relating to claims that have been asserted against us are described above. However no estimate
of the loss or range of loss can be made. The Company intends to vigorously defend this action and pursue its indemnification rights with its vendors.
On or about December16, 2009 Denmel Holdings, LLC filed suit against the Company and 25 other defendants United States District Court in the
Central District of Utah for infringement of a patent for a device used to house and recharge several electronic devices, such as cell phones and pagers. The
Company believes that certain third party vendors of such devices sold to the Company are contractually obligated to indemnify the Company in this action.
The Company has not yet answered the complaint. The case is in its early stages. The nature of the loss contingencies relating to claims that have been
asserted against us are described above. However no estimate of the loss or range of loss can be made. The Company intends to vigorously defend this action
and pursue its indemnification rights with its vendors.
On or about January 15, 2010 the Center for Environmental Health filed suit against the Company and 138 other defendants in Superior Court of
California, County of Alameda, for selling handbags
F-39