Vistaprint 2008 Annual Report Download - page 90

VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2008, 2007 and 2006
(in thousands, except share and per share data)
directors, executive officers and employees of the Company and its subsidiaries, to the extent legally
permissible, against all liabilities reasonably incurred in connection with any action in which the
individual may be involved by reason of such individual being or having been a director, officer or
employee.
Based upon the Company’s historical experience and information known to the Company as of
June 30, 2008, the Company believes its liability on the above guarantees and indemnities at June 30,
2008 is immaterial.
Purchase Commitments
At June 30, 2008, the Company had unrecorded commitments under contracts to expand the
Canadian printing facility and to purchase print production equipment for the Canadian and Dutch
printing facilities of approximately $9,482 and $12,442, respectively.
At June 30, 2007, the Company had unrecorded commitments under contracts to purchase print
production equipment and to complete construction relating to the expansion of the Canadian and
Dutch printing facilities of approximately $6,585 and $8,334, respectively.
Legal Proceedings
On July 27, 2006, the Company’s wholly-owned subsidiary VistaPrint Technologies Limited filed a
patent infringement lawsuit against print24 GmbH, unitedprint.com AG and their two managing
directors in the District Court in Düsseldorf Germany, alleging infringement by the defendants in
Germany of one of VistaPrint’s European patents related to computer-implemented methods and
apparatus for generating pre-press graphic files. On June 7, 2007, print24 GmbH filed a patent
nullification action in the German Patent Court in relation to the same European patent at issue in
VistaPrint’s infringement lawsuit against print24 and its co-defendants. On July 31, 2007, the District
Court in Düsseldorf ruled in VistaPrint’s favor on the underlying infringement claim against print24 and
its co-defendants, granting all elements of the requested injunction and ordering the defendants to pay
damages for past infringement. The Düsseldorf District Court’s ruling went into effect in early
September 2007 and was not appealed by the defendants. Print24’s nullification action against
VistaPrint in German Patent Court remains outstanding and the Company is unable to express an
opinion as to the likely outcome of such action.
On May 14, 2007, VistaPrint Technologies Limited filed a patent infringement lawsuit against
123Print, Inc. and Drawing Board (US), Inc., subsidiaries of Taylor Corporation, in the United States
District Court for the District of Minnesota. The complaint in the lawsuit asserts that the defendants
have infringed and continue to infringe three U.S. patents owned by VistaPrint Technologies Limited
related to browser-based tools for online product design. The complaint seeks an injunction against the
defendants and the recovery of damages. The defendants filed their Answer and Counterclaims to the
complaint on June 7, 2007, in which they denied the infringement allegations and asserted
counterclaims for declaratory judgment of invalidity, unenforceability and non-infringement of the
patents-in-suit. In August 2007, another Taylor Corporation subsidiary, Taylor Strategic Accounts, Inc.,
was added as an additional defendant in the case. The exchange of relevant documents and records
and the depositions of fact witnesses in connection with the allegations of the parties have been
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