Vistaprint 2009 Annual Report Download - page 51

Download and view the complete annual report

Please find page 51 of the 2009 Vistaprint annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

On April 17, 2009, VistaPrint USA, Incorporated filed a Motion to Dismiss the Consolidated
Complaint, and on July 2, 2009 the Plaintiffs filed an Opposition to VistaPrint USA, Incorporated’s
Motion to Dismiss. Following that, on July 24, 2009, VistaPrint USA, Incorporated filed a reply brief in
support of its Motion to Dismiss.
We are unable to express an opinion as to the likely outcome of these actions.
On June 26, 2009, Vistaprint Limited, our wholly-owned subsidiary, and VistaPrint USA,
Incorporated, a wholly-owned subsidiary of Vistaprint Limited, together with sixteen other companies
unaffiliated with Vistaprint Limited or VistaPrint USA, Incorporated, were named as defendants in a
complaint for patent infringement by Soverain Software LLC in the United States District Court for the
Eastern District of Texas. The complaint alleges that the defendants are infringing U.S. Patents
5,715,314, 5,909,492 and 7,272,639. Two of the asserted patents relate generally to network-based
sales systems employing a customer computer, a shopping cart computer and a shopping cart
database. The third patent relates generally to the use of session identifiers in connection with
requests transmitted through a network between a client and a server. The plaintiff is seeking
declarations that the patents at issue are valid and enforceable and that the defendants infringe the
patents, as well as the entry of a preliminary and permanent injunction and damages. This lawsuit is in
its earliest stages and we are unable to express an opinion as to its likely outcome.
On July 21, 2009, Vistaprint Limited and OfficeMax Incorporated were named as defendants in a
complaint for patent infringement filed by ColorQuick LLC in the United States District Court for the
Eastern District of Texas. The complaint alleges that Vistaprint Limited and OfficeMax Incorporated are
infringing U.S. patent 6,839,149, relating generally to systems and methods for processing electronic
files stored in a page description language format, such as PDF. The plaintiff is seeking a declaration
that the patent at issue is valid and enforceable, a declaration that Vistaprint Limited infringes the
patent, the entry of a preliminary and permanent injunction, and damages. This lawsuit is in its earliest
stages and we are unable to express an opinion as to its likely outcome.
We are not currently party to any other material legal proceedings. We are involved, from time to
time, in various legal proceedings arising from the normal course of business activities. Although the
results of litigation and claims cannot be predicted with certainty, we do not expect resolution of these
matters to have a material adverse impact on its consolidated results of operations, cash flows or
financial position. However, an unfavorable resolution of such a proceeding could, depending on its
amount and timing, materially affect our results of operations, cash flows or financial position in a future
period. Regardless of the outcome, litigation can have an adverse impact on us because of defense
costs, diversion of management resources and other factors.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Form 10-K
45