Seagate 2015 Annual Report Download - page 112
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
EnovaTechnologyCorporationv.SeagateTechnology(US)Holdings,Inc.,etal.—OnJune5,2013,EnovaTechnologyCorporation("Enova")fileda
complaintagainstSeagateTechnology(US)Holdings,Inc.andSeagateTechnologyLLCintheU.S.DistrictCourtfortheDistrictofDelawarealleging
infringementofU.S.PatentNo.7,136,995,"CryptographicDevice,"andU.S.PatentNo.7,900,057,"CryptographicSerialATAApparatusandMethod."The
complaintseeksunspecifiedcompensatorydamages,enhanceddamages,injunctiverelief,attorneys'fees,andotherrelief.OnApril27,2015,thedistrictcourt
orderedastayofthecase,inviewofproceedingsregardingthe'995and'057PatentsbeforethePatentTrialandAppealBoard("PTAB")oftheU.S.Patentand
TrademarkOffice.TheCompanybelievestheclaimsarewithoutmeritandintendstovigorouslydefendthiscase.OnSeptember2,2015,PTABissueditsfinal
writtendecisionthatclaims1-15ofthe'995Patentareheldunpatentable.OnDecember18,2015,PTABissueditsfinalwrittendecisionsthatclaims1-32and40-
53ofthe'057Patentareheldunpatentable.OnFebruary4,2016,PTABissueditsfinalwrittendecisionthatclaims33-39ofthe'057Patentareheldunpatentable.
EnovahasappealedPTAB'sdecisionsonthe'995Patentandthe'057PatenttotheU.S.CourtofAppealsfortheFederalCircuit.Ahearingbeforethecourtof
appealshasnotyetbeenscheduled.Inviewoftheuncertaintyregardingtheamountofdamages,ifany,thatcouldbeawardedinthismatter,theCompanydoesnot
believethatitiscurrentlypossibletodetermineareasonableestimateofthepossiblerangeoflossrelatedtothismatter.
SeagateTechnologyLLCv.WesternDigitalCorp.—OnOctober8,2014,theMinnesotaSupremeCourtruledthatthearbitrationawardinfavorofthe
CompanyinitscaseagainstWesternDigitalforthemisappropriationoftheCompany'stradesecretsshouldbeconfirmed.Inthearbitrationaward,issuedon
January23,2012,thearbitratordeterminedthatWesternDigitalanditsformeremployeehadmisappropriatedtheCompany'stradesecrets.Thearbitratorawarded
theCompany$525millionincompensatorydamagesand,afteraddinginterest,issuedafinalawardof$630million.Interestonthefinalawardhasbeenaccruing
at10%.OnOctober14,2014,theCompanyreceivedapartialpaymentfromWesternDigitalintheamountof$773million.DuringthequarterendedJanuary2,
2015,theamountofthefinalaward,lesslitigationandotherrelatedcosts,wasrecordedbytheCompanyinGainonarbitrationaward,net,andtheremaining
amountreceivedwasrecordedinOther,net.OnApril7,2015,theHennepinCountyDistrictCourtofMinnesota("districtcourt")deniedSeagate'smotionforentry
ofjudgmentforanamountofadditionalinterestowingonthearbitrationaward.OnJanuary25,2016,theMinnesotaCourtofAppealsreversedandremandedthe
districtcourt'sorderregardingtheunpaidinterest.OnJanuary27,2016,theCompanyreceivedafurtherpaymentfromWesternDigitalintheamountof
$33million,whichwastheremainingbalanceofinterestowedonthefinalaward.ThisamountwasrecordedinOther,netintheCondensedConsolidated
StatementofOperationsforthethreeandninemonthsendedApril1,2016.OnJanuary29,2016,thepartiesfiledastipulationofdismissalwiththedistrictcourt,
endingthelitigation.
LambethMagneticStructuresLLCv.SeagateTechnology(US)Holdings,Inc.,etal.—OnApril29,2016,LambethMagneticStructuresLLCfileda
complaintagainstSeagateTechnology(US)Holdings,Inc.andSeagateTechnologyLLCintheU.S.DistrictCourtfortheWesternDistrictofPennsylvania,
alleginginfringementofU.S.PatentNo.7,128,988,"MagneticMaterialStructures,DevicesandMethods."Thecomplaintseeksunspecifiedcompensatory
damages,enhanceddamages,injunctiverelief,attorneys'fees,andotherrelief.TheCompanybelievestheclaimsassertedinthecomplaintarewithoutmeritand
intendstovigorouslydefendthiscase.Inviewoftheuncertaintyregardingtheamountofdamages,ifany,thatcouldbeawardedinthismatter,theCompanydoes
notbelievethatitiscurrentlypossibletodetermineareasonableestimateofthepossiblerangeoflossrelatedtothismatter.
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