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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?


To: Anthony@Pacific who wrote (55285)4/29/2000 1:11:00 AM
From: Anthony@Pacific  Read Replies (2) | Respond to of 122087
 
EEEE<----------LITIGATION No 2!!!!!!!!!!!!!!



Packard Bell filed a complaint on October 6, 1999 in Federal District Court
for the Eastern District of California, alleging patent infringement on Packard
Bell patents which it asserts relates to (i) graphics controller, (ii) parallel
port controller, and (iii) bus interface of our eTower machine. We filed a
response in January 2000 disputing infringement and asserting that the patents
at issue are invalid. We are in the early stages of discovery. As a result, we
are currently unable to estimate total expenses, possible loss or range of loss that may be ultimately connected with these allegations. We are indemnified
against liability under the terms of our PC supply agreement. We cannot assure
you that Packard Bell will not succeed in obtaining monetary damages or an
injunction against the production of our PC products. Our defense of the claims
could result in significant expenses and diversion of management's attention
and other resources. Although we believe our direct financial exposure is
limited under our indemnification arrangements, the results of complex
litigation of this sort are inherently uncertain and difficult to predict and
we cannot assure you that the results of this litigation would not result in
our business being significantly harmed, particularly if it affects production
of our PCs.