Apple 2003 Annual Report Download - page 15

filed by the Company, all of which were denied by the Court. Through a series of corporate transactions the assets belonging to Plaintiff were
acquired by a subsidiary, Lernout & Hauspie Speech Products N.V. ("L&H"). L&H filed for bankruptcy in November 2000 and is being
liquidated as part of the bankruptcy. The case has been inactive since approximately May 2002, pending the resolution of the L&H bankruptcy
and liquidation.
15
Bancroft v. Apple Computer, Inc.
Plaintiff Bancroft filed this purported class action on January 30, 2002 in Los Angeles Superior Court on behalf of a potentially nationwide
class of purchasers of certain Power Macintosh G3 computers. Plaintiff alleged violation of the Consumer Legal Remedies Act ("CLRA")
arising from allegedly poor performance while running the Company's Mac OS X operating system, specifically relating to 2D hardware
acceleration, QuickTime movie hardware acceleration, 3D graphics performance and DVD movie playback. The parties reached a settlement
and the Court granted preliminary approval on September 2, 2003. The final approval hearing is set for January 26, 2004. Settlement of the
matter will not have a material effect on the Company's financial position or results of operations.
BIAX Corporation v. Apple Computer, Inc.
Plaintiff BIAX filed this action on September 5, 2001 in the United States District Court in Delaware claiming patent infringement relating to
dual processor technology. IBM and Motorola were added as defendants in an amended complaint. Plaintiff sought unspecified damages and
other relief. The Company answered the complaint, denied all allegations and asserted numerous affirmative defenses. The Company also
asserted counterclaims for declaratory judgment for non-infringement, unenforceability and invalidity. The parties settled this case in
August 2003 and the matter is concluded. Settlement of this matter did not have a material effect on the Company's financial position or results
of operations.
Dan, et al. v. Apple Computer, Inc. et al.
Plaintiffs filed this purported class action on September 22, 2003 in Los Angeles Superior Court against the Company and other members of
the industry on behalf of a nationwide class of purchasers of certain computer hard drives. The case alleges violations of Civil Code
Section 17200 ("Unfair Competition"), the Consumer Legal Remedies Act ("CLRA") and false advertising related to the size of the drives.
Plaintiffs allege that calculation of hard drive size using the decimal method misrepresents the actual size of the drive. The complaint seeks
unspecified damages and other relief. The case is stayed pending resolution of whether the case will be considered "complex" and potentially a
new judge assigned. The Company is beginning its investigation of these allegations.
Digital Development Corporation v. Apple Computer, Inc.
Plaintiff, Digital Development Corporation filed this action on April 25, 2003 in the United States District Court in New Jersey, claiming
patent infringement of two patents, 4,975,950 and 5,121,345, related to a "System and Method of Protecting Integrity of Computer Data and
Software." Plaintiff requests unspecified damages and other relief. The complaint has not yet been served on the Company.
Dowhal v. Apple Computer, Inc.
Plaintiff filed this representative action in San Francisco County Superior Court on February 4, 2003 alleging that the Company and numerous
other defendants have participated in false advertising and unfair business practices related to alleged misrepresentation of printer speed.
Plaintiff asserts causes of action for violation of California Business and Professions Code §17200 and §
17500. Plaintiff requests an injunction,
restitution and other unspecified damages and relief. The Company was served on February 10, 2003. Apple filed a response on March 12,
2003. The parties are in discovery.
Dynacore Holdings Corp. v. Apple Computer, Inc.
Plaintiff Dynacore filed this action on June 6, 2001 in United States District Court for the Southern District of New York against the Company
and thirteen other defendants claiming patent infringement relating to IEEE 1394 technology, also known as FireWire. Plaintiff claims that any
computer system or other electronic product that uses or complies with the IEEE 1394 standard violates the patent. Plaintiff seeks unspecified
damages and other relief. The Company has answered the complaint, denying all allegations and asserting numerous affirmative defenses. The
Company also asserted counterclaims requesting declaratory judgment for non-infringement and invalidity. Defendants are seeking to amend
the
16