Seagate 2013 Annual Report Download - page 114

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
New York, alleging infringement of U.S. Patent Nos. 4,916,635 (the "'635 patent") and U.S. Patent No. 5,638,267 (the "'267 patent"),
misappropriation of trade secrets, breach of contract, and other claims. In the complaint, the plaintiffs requested injunctive relief, $800 million in
compensatory damages and unspecified punitive damages, including for willful infringement. On January 16, 2002, Convolve filed an amended
complaint, alleging defendants infringe US Patent No. 6,314,473 (the "'473 patent"). The district court ruled in 2010 that the '267 patent was out
of the case.
On August 16, 2011, the district court granted in part and denied in part the Company's motion for summary judgment. On July 1, 2013, the
U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court's summary judgment rulings that Seagate did not misappropriate any
of the alleged trade secrets and that the asserted claims of the '635 patent are invalid; 2) reversed and vacated the district court's summary
judgment of non
-infringement with respect to the '473 patent; and 3) remanded the case for further proceedings on the '473 patent. On July 11,
2014, the district court issued its ruling on the Company's summary judgment motion regarding Convolve's only remaining cause of action,
which alleged infringement of the '473 patent; the court granted the motion and directed the clerk of the court to close the case. The court entered
judgment in favor of the Company on July 14, 2014. In view of the rulings made by the district court and the Court of Appeals and 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.
Alexander Shukh v. Seagate Technology —On February 12, 2010, Alexander Shukh filed a complaint against the Company in the U.S.
District Court for the District of Minnesota, alleging, among other things, employment discrimination based on his Belarusian national origin
and wrongful failure to name him as an inventor on several patents and patent applications. Mr. Shukh's employment was terminated as part of a
company-wide reduction in force in fiscal year 2009. He seeks damages in excess of $75 million. The Company believes the claims are without
merit and intends to vigorously defend this case. On March 31, 2014, the district court granted Seagate's summary judgment motion and entered
judgment in favor of Seagate. Mr. Shukh filed a notice of appeal on April 7, 2014. In view of the uncertainty regarding the amount of damages,
if any, that could be awarded 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.
LEAP Co., Ltd. v. Seagate Singapore International Headquarters Pte. Ltd. and Nippon Seagate Inc. —On July 4, 2012, LEAP Co., Ltd.
filed a lawsuit in the Tokyo District Court of Japan against Seagate Singapore International Headquarters Pte. Ltd., Nippon Seagate Inc. and
Buffalo Inc. alleging wrongful termination of purchase agreements and other claims, and seeking approximately $38 million in damages. A date
for the start of trial has not yet been scheduled. The Company believes the claims are without merit and intends to vigorously defend this case. In
view of the uncertainty regarding the amount of damages, if any, that could be awarded 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.
Realtek Semiconductor Corporation ITC Investigation re Certain Integrated Circuit Chips and Products Containing the Same —On
September 19, 2012, Realtek Semiconductor Corporation filed a complaint with the International Trade Commission ("ITC") seeking an
investigation pursuant to Section 337 of the Tariff Act of 1930, as amended ("Section 337"). The complaint names LSI Corporation and Seagate
Technology as respondents and alleges infringement of U.S. patents relating to integrated circuit chips that include bond pad structures. Realtek
seeks an order to exclude entry of infringing integrated circuit chips and products containing the infringing integrated circuit chips into the U.S.
and a cease and desist order. The ITC initiated an investigation on October 18, 2012. On March 21, 2014, the Administrative Law Judge ("ALJ")
issued an Initial Determination in favor of Seagate and LSI. On July 21, 2014, the Commission
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