To: slacker711 who wrote (28216 ) 5/16/2005 10:28:22 AM From: slacker711 Read Replies (2) | Respond to Sandisk acknowledges the risk of the Lexar suit in their 10K....yahoo.brand.edgar-online.com We have been, and expect to continue to be, subject to claims and legal proceedings regarding alleged infringement by us of the patents, trademarks and other intellectual property rights of third parties. From time to time we have sued, and may in the future sue, third parties in order to protect our intellectual property rights. Parties that we have sued and that we may sue for patent infringement may countersue us for infringing their patents. If we are held to infringe the intellectual property of others, we may need to spend significant resources to develop non-infringing technology or obtain licenses from third parties, but we may not be able to develop such technology or acquire such licenses on terms acceptable to us or at all. We may also be required to pay significant damages and/or discontinue the use of certain manufacturing or design processes. In addition, we or our suppliers could be enjoined from selling some or all of our respective products in one or more geographic locations. For example, there is litigation pending between our competitor Lexar and Toshiba, in which Lexar has recently requested a permanent injunction to prevent the importation of chips or cards manufactured by Toshiba or Flash Vision. Although we believe there is no legal basis for such an injunction, if the court were to issue an injunction, our business could be significantly harmed. If we or our suppliers are enjoined from selling any of our respective products or if we are required to develop new technologies or pay significant monetary damages or are required to make substantial royalty payments, our business would be harmed.
