Vistaprint 2009 Annual Report Download - page 99

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VISTAPRINT LIMITED
(predecessor to Vistaprint N.V.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2009, 2008 and 2007
(in thousands, except share and per share data)
VistaPrint USA, Incorporated filed a Motion to Dismiss for Improper Venue in the United States District
Court for the Southern District of Texas. Subsequently, on or about September 16, 2008, the plaintiff in
one of the cases pending before the United States District Court for the District of Massachusetts filed
a Motion before the Judicial Panel on Multidistrict Litigation seeking the consolidation and transfer of
pretrial proceedings in all of the outstanding cases to the Massachusetts District Court. Following that,
on or about September 24, 2008 and September 25, 2008, the Vertrue Defendants and VistaPrint
USA, Incorporated and Vistaprint Limited, respectively, filed motions before the Judicial Panel on
Multidistrict Litigation to transfer all of the outstanding cases, as well as any cases subsequently filed
involving similar facts or claims, to the United States District Court for the Southern District of Texas for
coordinated pretrial proceedings. All of the purported class action lawsuits in which the Defendants
have been served were subsequently stayed pending resolution of the motions for consolidation and
transfer pending before the Judicial Panel on Multidistrict Litigation. On December 11, 2008, the
Judicial Panel on Multidistrict Litigation ruled in favor of the motions brought by the Vertrue
Defendants, VistaPrint USA, Incorporated and Vistaprint Limited and ordered the transfer of all of the
outstanding cases to the United States District Court for the Southern District of Texas for coordinated
pretrial proceedings. As a result of the ruling of the Judicial Panel on Multidistrict Litigation, on March 2,
2009 four of the existing plaintiffs filed a Consolidated Complaint with the United States District Court
for the Southern District of Texas.
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.
The Company is unable to express an opinion as to the likely outcome of these actions.
On June 26, 2009, Vistaprint Limited, the Company’s 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 named 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 the Company is 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 entry
93
Form 10-K