Apple 2008 Annual Report Download - page 34

Table of Contents
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 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. On November 28, 2007, the Company filed a motion for summary judgment for non-infringement and invalidity, and a motion for
summary judgment related to Quantum’s state-law claims. On December 27, 2007, Quantum filed a motion for summary judgment for
infringement on one patent claim. In March 2008, Quantum was acquired by Atmel Corporation. The parties have reached a settlement.
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 in the Tokyo District Court, seeking a declaration that
the ‘854 patent is invalid and not infringed. Saito filed a Counter Complaint for infringement seeking damages.
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. On January 11, 2008, the Court issued a ruling in plaintiff’s
favor. The Court ruled that despite the Company’s good faith efforts with the levy refund program, the Company must pay the amount claimed,
and that the class is comprised of 20,000 persons who purchased an iPod in Quebec between December 12, 2003 and December 14, 2004. The
Court ordered the Company to submit a statement of account showing the amount received by the Canadian Private Copying Collective, and the
amount that has already been paid to class members in Quebec under the Company’s levy refund program. The Court also ordered the parties to
submit further briefing regarding the collective recovery award by February 23, 2008. On February 11, 2008, the Company filed an appeal. The
Company’s appeal is pending.
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 non-infringement and invalidity. The
Markman hearing is set for March 12, 2009, and trial is scheduled for July 6, 2009.
31