Apple 2003 Annual Report Download - page 16

pleading to assert a counterclaim for inequitable conduct against Dynacore. The case was initially stayed pending the Federal Circuit's decision
in Datapoint Corp. v. Standard Microsystems Corp., a related case in which plaintiff claimed that its patent was infringed by products
complying with the fast Ethernet standard. In February 2002, the Federal Circuit affirmed the judgment of non-infringement in Datapoint, and
the District Court lifted the stay in this action. The defendants in this action filed a joint motion for summary judgment based upon the decision
in Datapoint. The Court heard the motion on October 4, 2002 and granted summary judgment in favor of the defendants on February 11, 2003.
Dynacore has appealed the ruling. The parties have filed their respective briefs, and the case is scheduled for oral argument before the Federal
Circuit Court on January 5, 2004.
Hawaii Structural Iron Workers and Pension Trust Fund v. Apple Computer, Inc. and Steven P. Jobs; Young v. Apple Computer, Inc. et al;
Hsu v. Apple Computer Inc. et al
Beginning on September 27, 2001, three shareholder class action lawsuits were filed in the United States District Court for the Northern
District of California against the Company and its Chief Executive Officer. These lawsuits are substantially identical, and purport to bring suit
on behalf of persons who purchased the Company's publicly traded common stock between July 19, 2000, and September 28, 2000. The
complaints allege violations of the 1934 Securities Exchange Act and seek unspecified compensatory damages and other relief. The Company
believes these claims are without merit and intends to defend them vigorously. The Company filed a motion to dismiss on June 4, 2002, which
was heard by the Court on September 13, 2002. On December 11, 2002, the Court granted the Company's motion to dismiss for failure to state
a cause of action, with leave to Plaintiffs to amend their complaint within thirty days. Plaintiffs filed their amended complaint on January 31,
2003, and on March 17, 2003, the Company filed a motion to dismiss the amended complaint. The Court heard the Company's motion on
July 11, 2003 and dismissed Plaintiff's claims with prejudice on August 12, 2003. Plaintiffs have appealed the ruling.
John W. Davis v Apple Computer, Inc.
Plaintiff filed this purported class action in San Francisco County Superior Court on December 5, 2002, alleging that the Company has engaged
in unfair and deceptive business practices relating to its AppleCare Extended Service and Warranty Plan. Plaintiff asserts causes of action for
violation of the California Business and Professions Code §17200 and §17500, breach of the Song-Beverly Warranty Act, intentional
misrepresentation and concealment. The Company was served on December 11, 2002 and is continuing its investigation of the allegations.
Plaintiff requests unspecified damages and other relief. Apple filed a motion on October 29, 2003 to disqualify Plaintiff's counsel, which the
Court approved. The case is set for trial on February 23, 2004.
MacTech v. Apple Computer, Inc.; Macadam v. Apple Computer, Inc.; Computer International, Inc. v. Apple Computer, Inc.; Elite Computers
and Software, Inc. v. Apple Computer, Inc.; The Neighborhood Computer Store v. Apple Computer, Inc. (All in Santa Clara County Superior
Court).
Five resellers have filed similar lawsuits against the Company for various causes of action including breach of contract, fraud, negligent and
intentional interference with economic relationship, negligent misrepresentation, trade libel, unfair competition and false advertising. Plaintiffs
request unspecified damages and other relief. The parties are in discovery. On October 1, 2003, one of the resellers, Macadam was
deauthorized as an Apple reseller. Macadam filed a motion for a temporary order to re-
instate it as a reseller, which the Court denied. A hearing
on its motion for a preliminary injunction is scheduled for December 18, 2003.
Palmieri v. Apple Computer, Inc.
Plaintiff filed this purported class action on September 5, 2003 in Los Angeles Superior Court on behalf of a nationwide class of purchasers of
certain PowerBooks. The case alleges violations of Civil Code Section 17200 (Unfair Competition) and the Consumer Legal Remedies Act
("CLRA") arising from an alleged design defect in the PowerBooks which purportedly causes marks and dead pixels in the LCD
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screens. Plaintiffs amended their complaint to allege an additional defect in the new 15" PowerBook, introduced in September, 2003, which
purportedly causes "white spots" on the screen. The complaint seeks unspecified damages and other relief. The Company's response is not yet
due. The Company is beginning its investigation of these allegations.
TIBCO Software, Inc. v. Apple Computer, Inc.
Plaintiff filed this case on August 27, 2003 in United States District Court for the Northern District of California alleging trademark
infringement by the Company for using the mark "Rendezvous." Plaintiff's mark is "TIBCO Rendezvous." The complaint seeks unspecified
damages and other relief. The Company answered the complaint denying all allegations and asserting numerous affirmative defenses. The
Company also asserted counterclaims requesting a declaratory judgment for non-infringement, invalidity and no dilution.
UNOVA, Inc. v. Apple Computer, Inc., et al.