Apple 2007 Annual Report Download - page 32

Individual Networks, LLC v. Apple, Inc.
Plaintiff filed this action against the Company on April 24, 2007 in the United States District Court for the Eastern District of Texas, Marshall
Division, alleging infringement of U.S. Patent No. 7,117,516, entitled "Method and System for Providing a Customized Media List." Plaintiff
alleges certain features of the iTunes store infringe the patent. The complaint seeks unspecified damages and other relief. The Company filed an
answer on July 2, 2007, denying all material allegations and asserting numerous affirmative defenses. The Company also asserted counterclaims
for declaratory judgment of noninfringement and invalidity, as well as a counterclaim against Individual Networks LLC for infringement of U.S.
Patent No. 5,724,567. The Markman hearing is set for October 8, 2008, and trial is scheduled for November 9, 2009.
Intertainer, Inc. v. Apple Computer, Inc., et al.
Plaintiff filed this action on December 29, 2006 in the United States District Court for the Eastern District of Texas, Marshall Division, alleging
infringement by the Company and others of U.S. Patent number 6,925,469 entitled "Digital Entertainment Service Platform." The complaint
seeks unspecified damages and other relief. The Company filed an answer on February 21, 2007 denying all material allegations and asserting
numerous affirmative defenses. The Company also asserted counterclaims for declaratory judgment of noninfringement and invalidity.
Lenzi v. Apple Canada, Inc.; Wolfe v. Apple Computer, Inc. and Apple Canada, Inc.; Hirst v. Apple Canada, Inc.; Hamilton v. Apple
Computer, Inc. and Apple Canada, Inc.
Plaintiff filed a purported class action on June 7, 2005, in Superior Court, in Montreal, Quebec, Canada allegedly on behalf of Quebec customers
claiming false advertising and breach of warranty relating to iPod battery life. Plaintiff sought authorization to institute a class action on behalf
of Generations 1, 2 and 3 iPod owners in Quebec. On February 2, 2006, the Court dismissed plaintiff's motion for authorization to institute a
class action. Plaintiff has appealed this ruling.
Two similar complaints relative to iPod battery life, Wolfe v. Apple and Hirst v. Apple , were filed in Toronto, Ontario, Canada on August 15,
2005 and September 12, 2005, respectively. Counsel subsequently amended the complaint, now called Waddell vs. Apple . The Waddell lawsuit
is brought on behalf of all Canadian purchasers other than Quebec purchasers. On January 17, 2006, the Company filed its statement of defence
to the Waddell complaint. In addition, a similar complaint regarding iPod battery life, Hamilton v. Apple Computer, Inc. and Apple Canada, Inc.
was filed in Calgary, Alberta, Canada on October 5, 2005, purportedly on behalf of all purchasers of iPods in Alberta, Canada. The complaint
was served on September 27, 2006. The Company has reached a settlement of this matter and the parties have requested preliminary court
approval for the settlement. Settlement of this matter will not have a material effect on the Company's financial condition or operating results.
Macadam v. Apple Computer, Inc.; Santos v. Apple Computer, Inc.
(Santa Clara County Superior Court)
The Macadam action was filed in late 2002 asserting 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. The complaint
requested unspecified damages and other relief. The Company filed an answer on December 3, 2004 denying all allegations and asserting
numerous defenses.
On October 1, 2003, Macadam was deauthorized as an Apple reseller. Macadam filed a motion for a temporary order to reinstate it as a reseller,
which the Court denied. The Court denied Macadam's motion for a preliminary injunction on December 19, 2003. On December 6, 2004,
Macadam filed for Chapter 11 bankruptcy in the Northern District of California, which placed a stay on the litigation as to Macadam. The
Company filed a claim in the bankruptcy proceedings on February 16, 2005. The Macadam bankruptcy case was converted to Chapter 7
(liquidation) on April 29, 2005. The Company has reached a settlement of Macadam's claims against the Company with the Chapter 7
Bankruptcy Trustee. The Bankruptcy Court
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