Apple 2007 Annual Report Download - page 33

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approved the settlement on July 17, 2006 over the objection of Tom Santos, Macadam's principal. Santos appealed the ruling approving the
settlement, but the district court denied the appeal. Santos has appealed to the Ninth Circuit Court of Appeals.
On December 19, 2005, Tom Santos filed a Fifth Amended Complaint on his own behalf (not on behalf of Macadam) alleging fraud, violations
of California Business & Professions Code §17200 (unfair competition), California Business & Professions Code §17500 (false advertising) and
the Consumer Legal Remedies Act. The Company filed a demurrer to Santos' amended complaint and a special motion to strike the defamation
cause of action on January 20, 2006. The Court sustained the demurrer in part but denied the special motion to strike. Santos filed a Sixth
Amended Complaint on July 14, 2006. The Company filed a demurrer, which was granted on September 9, 2006. Santos filed a Seventh
Amended Complaint in late September, 2006. The Company filed a motion to strike, which was granted in part and denied in part on
December 15, 2006. Santos filed an Eighth Amended Complaint on January 29, 2007. The Company filed a demurrer, which was heard on
May 7, 2007. The court sustained the demurrer, and Santos filed a Ninth Amended Complaint on July 11, 2007. The Company filed a demurrer,
which was overruled. The Company also filed a cross complaint against Santos on January 20, 2006 alleging violations of California Business &
Professions Code §17200 and California Penal Code §502, fraud and deceit and breach of contract.
Mediostream, Inc. v. Acer America Corp. et al.
Plaintiff filed this action against the Company, Acer America Corp., Dell, Inc. and Gateway, Inc. on August 28, 2007 in the United States
District Court for the Eastern District of Texas, Marshall Division, alleging infringement of U.S. Patent No. 7,009,655, entitled "Method and
System for Direct Recording of Video Information onto a Disk Medium." The complaint seeks unspecified damages and other relief. The
Company's response to the complaint is not yet due.
OPTi Inc. v. Apple Inc.
Plaintiff filed this action against the Company on January 16, 2007 in the United States District Court for the Eastern District of Texas, Marshall
Division, alleging infringement of U.S. Patent Nos. 5,710,906, 5,813,036 and 6,405,291, all entitled "Predictive Snooping of Cache Memory for
Master-Initiated Accesses." The complaint seeks unspecified damages and other relief. The Company filed an answer on April 17, 2007 denying
all material allegations and asserting numerous affirmative defenses. The Company also asserted counterclaims for declaratory judgment of
noninfringement and invalidity.
Premier International Associates LLC v. Apple Computer, Inc.
Plaintiff filed this action on November 3, 2005 in the United States District Court for the Eastern District of Texas, Marshall Division, alleging
infringement by the Company of U.S. Patent Nos. 6,243,725 and 6,763,345 both entitled "List Building System." The complaint sought
unspecified damages and other relief. The Company filed an answer on January 13, 2006 denying all material allegations and asserting numerous
affirmative defenses. The Company also asserted counterclaims for a declaratory judgment of noninfringement and invalidity. A Markman
hearing was held on May 17, 2007 and the court issued its claim construction ruling on May 23, 2007. Trial was scheduled for December 3,
2007. The parties have reached a settlement and the matter is concluded. Settlement of this matter did not have a material effect on the
Company's financial condition or operating results.
Quantum Technology Management, Ltd. v. Apple Computer, Inc.
Plaintiff filed this action on December 21, 2005 in the United States District Court for the District of Maryland against the Company and
Fingerworks, Ltd., alleging infringement of U.S. Patent No. 5,730,165 entitled "Time Domain Capacitive Field Detector." The complaint seeks
unspecified damages and other relief. On May 11, 2006, Quantum filed an amended complaint adding Cypress
Semiconductor/MicroSystems, Inc. as a defendant. On July 31, 2006, the Company filed an answer denying all material
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