Symantec 2016 Annual Report Download - page 164

IV
On December 8, 2010, Intellectual Ventures (“IV”) sued Symantec for patent infringement in the U.S.
District Court in Delaware. The complaint alleged infringement by various Symantec internet security products.
On February 6, 2015, the jury issued a verdict and subsequent Court decisions invalidated some of the patents-in-
suit, therefore leaving an $8 million damages verdict. Symantec is seeking to overturn that verdict. Symantec
does not believe that it is probable that it has incurred a material loss and, as a result, has not made an accrual for
this matter.
EDS & NDI
On January 24, 2011, a class action lawsuit was filed against the Company and its previous e-commerce
vendor Digital River, Inc.; the lawsuit alleged violations of California’s Unfair Competition Law, the California
Legal Remedies Act and unjust enrichment related to prior sales of Extended Download Service (“EDS”) and
Norton Download Insurance (“NDI”). On March 31, 2014, the U.S. District Court for the District of Minnesota
certified a class of all people who purchased these products between January 24, 2005 and March 10, 2011. In
August 2015, the parties executed a settlement agreement pursuant to which the Company would pay the
plaintiffs $30 million, which we accrued. On October 8, 2015, the Court granted preliminary approval of the
settlement, which was subsequently paid by the Company into escrow. The Court granted final approval on April
22, 2016, and entered judgment in the case. Objectors to the settlement have filed notices of appeal to the Eight
Circuit Court of Appeals, challenging the Court’s approval of the settlement.
Other
We are involved in a number of other judicial and administrative proceedings that are incidental to our
business. Although adverse decisions (or settlements) may occur in one or more of the cases, it is not possible to
estimate the possible loss or losses from each of these cases. The final resolution of these lawsuits, individually
or in the aggregate, is not expected to have a material adverse effect on our business, results of operations,
financial condition or cash flows.
Note 8. Segment and Geographic Information
The Company operates in the following two reporting segments, which are the same as our operating
segments:
•Consumer Security: Our Consumer Security segment focuses on making it simple for customers to be
productive and protected at home and at work. Our Norton-branded services provide multi-layer
security and identity protection on major desktop and mobile operating systems, to defend against
increasingly complex online threats to individuals, families, and small businesses.
•Enterprise Security: Our Enterprise Security segment protects organizations so they can securely
conduct business while leveraging new platforms and data. Our Enterprise Security segment includes
our threat protection products, information protection products, cyber security services, and website
security offerings, previously named trust services.
There were no intersegment sales for the periods presented. The historical information presented has been
retrospectively adjusted to reflect the sale of Veritas.
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