Apple 2007 Annual Report Download - page 34

allegations and asserting numerous affirmative defenses and also filed counterclaims for non-infringement and invalidity. On November 30,
2006, plaintiff filed a reply to the Company's counterclaims and a More Definite Statement. A Markman hearing was held on May 16, 2007. On
June 7, 2007, the court issued a claim construction ruling, and also issued an order invalidating six of plaintiff's asserted patent claims in
response to the Company's motion for partial summary judgment of invalidity.
Saito Shigeru Kenchiku Kenkyusho (Shigeru Saito Architecture Institute) v. iPod; Apple Japan Inc. v. Shigeru Saito Architecture Institute
Plaintiff Saito filed a petition in the Japan Customs Office in Tokyo on January 23, 2007 alleging infringement by the Company of Japanese
Patent No. 3852854, entitled "Touch Operation Input Device and Electronic Parts Thereof." The petition sought an order barring the importation
into Japan of fifth generation iPods and second generation iPod nanos. The Customs Office held a hearing on March 22, 2007. The Customs
Office rejected the petition to bar importation and dismissed plaintiff's case.
Apple Japan, Inc. filed a Declaratory Judgment action against Saito on February 6, 2007, seeking a declaration that the '854 patent is invalid and
not infringed. Saito filed a Counter Complaint for infringement seeking damages.
SP Technologies LLC v. Apple Inc.
Plaintiff filed this action against the Company on August 2, 2007 in the United States District Court for the Eastern District of Texas, Marshall
Division, alleging infringement of U.S. Patent No. 6,784,873 entitled "Method and Medium for Computer Readable Keyboard Display Incapable
of User Termination." The complaint seeks unspecified damages and other relief. The Company's response to the complaint is not yet due.
St-Germain v. Apple Canada, Inc.
Plaintiff filed this case in Montreal, Quebec, Canada, on August 5, 2005, seeking authorization to institute a class action for the refund by the
Company of the Canadian Private Copying Levy that was applied to the iPod purchase price in Quebec between December 12, 2003 and
December 14, 2004 but later declared invalid by the Canadian Court. The Company has completed a refund program for this levy. A class
certification hearing took place January 13, 2006. On February 24, 2006, the Court granted class certification and notice was published during
the last week of March 2006. The trial was conducted on October 15 and 16, 2007. The Court has not yet issued a decision.
Texas MP3 Technologies Ltd v. Apple Inc. et al.
Plaintiff filed this action against the Company and other defendants on February 16, 2007 in the United States District Court for the Eastern
District of Texas, Marshall Division, alleging infringement of U.S. Patent No. 7,065,417 entitled "MPEG Portable Sound Reproducing System
and A Reproducing Method Thereof." The complaint seeks unspecified damages and other relief. On July 12, 2007, the Company filed a petition
for reexamination of the patent, which the U.S. Patent and Trademark Office granted. Plaintiff filed an amended complaint on August 1, 2007,
adding the iPhone as an accused device. On August 2, 2007, the Company filed a motion to stay the litigation pending the outcome of the
reexamination, which the Court denied. The Company filed an answer on August 20, 2007, denying all material allegations and asserting
numerous affirmative defenses. The Company also asserted counterclaims for declaratory judgment of noninfringement and invalidity.
The Apple iPod iTunes Antitrust Litigation (formerly Charoensak v. Apple Computer, Inc. and Tucker v. Apple Computer, Inc.); Black v.
Apple Inc.
The first-listed action is a consolidated case combining two cases previously pending under the names Charoensak v. Apple Computer Inc.
(formerly Slattery v. Apple Computer Inc.) and Tucker v. Apple Computer, Inc. The original plaintiff (Slattery) in the Charoensak case filed a
purported class action on
31