Seagate 2010 Annual Report Download - page 118

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Convolve's Quick and Quiet™ technology. The plaintiffs claimed their technology is incorporated in Seagate's sound barrier technology, which
was publicly announced on June 6, 2000. The complaint seeks injunctive relief, $800 million in compensatory damages and unspecified punitive
damages, including for willful infringement and willful and malicious misappropriation. If willful infringement is found by the jury, the court
may assess, in addition to compensatory damages for the infringement, punitive damages in an amount up to three times the amount of such
compensatory damages. If willful and malicious misappropriation is found by the jury, the court may assess, in addition to compensatory
damages for the misappropriation, punitive damages in an amount up to two times the amount of such compensatory damages.
On November 6, 2001, the U.S. Patent and Trademark Office (USPTO) issued to Convolve US Patent No. 6,314,473, "System for
Removing Selected Unwanted Frequencies in Accordance with Altered Settings in a User Interface of a Data Storage Device," (the '473 patent").
Convolve filed an amended complaint on January 16, 2002, alleging defendants infringe this patent. The '635 patent expired on September 12,
2008. The court ruled in 2010 that the '267 patent was out of the case. No trial date has been set in the litigation. The Company believes the
claims are without merit, and intends to defend against them vigorously. In view of the uncertainty regarding the amount of damages, if any, that
could be awarded Convolve in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the
possible range of loss related to this matter.
Siemens, AG v. Seagate Technology (Ireland) —On December 2, 2008, Siemens served Seagate Technology (Ireland), an indirect wholly-
owned subsidiary of Seagate Technology, with a writ of summons alleging infringement of European Patent (UK) No. 0 674 769 (the EU '769
patent), which is the European counterpart to US Patent No. 5,686,838 upon which Siemens had sued Seagate Technology in the United States.
The suit was filed in the High Court of Justice in Northern Ireland, Chancery Division. Siemens alleges that giant magnetoresistive (GMR),
tunnel magnetoresistive (TMR), and tunnel giant magnetoresistive (TGMR) products designed and manufactured by Seagate Technology
(Ireland) infringe the EU '769 patent. Trial on liability issues was completed in June 2010. The court issued its decision on July 4, 2011. The
court rejected Siemens' claims of patent infringement and made a provisional ruling that the patent was invalid over the prior art. In view of the
court's ruling, the Company does not expect this matter will result in a loss.
Qimonda AG v. LSI Corporation, et al. —On December 19, 2008, the US International Trade Commission (ITC) instituted an investigation
under section 337 of the Tariff Act of 1930, as amended, at the request of complainant Qimonda AG, naming LSI Corporation and six Seagate
Technology entities as respondents. The complaint alleges that LSI Corporation and Seagate import products into the US that infringe seven
Qimonda patents relating to the design and manufacture of semiconductor integrated chips. The ITC trial was held in June 2009. On October 14,
2009, the Administrative Law Judge issued an Initial Determination finding the Qimonda patents either invalid, not infringed, or both. Qimonda
appealed to the ITC Commission, which ruled on January 29, 2010, that the patents were either invalid, not infringed, or both. On March 31,
2010, Qimonda noticed an appeal of the Commissions' ruling to the Court of Appeals for the Federal Circuit. On January 17, 2011, the Federal
Circuit affirmed the Commission's ruling in full; accordingly, the Company does not expect this matter will result in a loss.
Collins, et al. v. Seagate Technology, et al. —On July 15, 2009, Carl Collins and Farzin Davanloo filed a complaint against Seagate
Technology, Seagate Technology LLC, and 19 other hard drive, computer, and retail companies. The complaint alleges that unspecified hard
disk drives and components thereof infringe US patent Nos. 5,411,797 (the '797 patent) and 5,478,650 (the '650 patent), both entitled
"Nanophase Diamond Films." The case is pending in the US District Court for the Eastern District of Texas, Marshall
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