BRCD » Topics » Third-parties may bring infringement claims against Brocade, which could be time-consuming and expensive to defend.

These excerpts taken from the BRCD 10-K filed Dec 15, 2008.
Third-parties may bring infringement claims against Brocade, which could be time-consuming and expensive to defend.
 
In recent years, there has been significant litigation in the United States involving patents and other intellectual property rights. Brocade has in the past been involved in intellectual property-related disputes, including lawsuits with Vixel Corporation and Raytheon Company, and Brocade may be involved in similar disputes in the future to protect Brocade’s intellectual property or as a result of an alleged infringement of the intellectual property of others. Brocade may also inherit intellectual property-related disputes from acquisitions of other companies, products or technologies. In addition, Brocade may be subject to indemnification obligations with respect to infringement of third-party intellectual property rights pursuant to Brocade’s agreements with OEM partners or customers. These claims and any resulting lawsuits could subject Brocade to significant liability for damages and invalidation of proprietary rights. Any such lawsuits, even if ultimately resolved in Brocade’s favor, would likely be time-consuming, expensive to resolve and divert management’s time and attention. Any potential intellectual property dispute also could force Brocade to do one or more of the following:
 
  •  stop selling, incorporating or using products or services that use the challenged intellectual property;
 
  •  obtain from the owner of the infringed intellectual property a license to the relevant intellectual property, which may require Brocade to pay royalty or license fees, or license Brocade’s intellectual property to such owner, which may not be available on commercially reasonable terms, or at all; and
 
  •  redesign those products or services that use technology that is the subject of an infringement claim.
 
If Brocade is forced to take any of the foregoing actions, Brocade’s business and results of operations could be materially harmed.


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Third-parties
may bring infringement claims against Brocade, which could be
time-consuming and expensive to defend.



 



In recent years, there has been significant litigation in the
United States involving patents and other intellectual property
rights. Brocade has in the past been involved in intellectual
property-related disputes, including lawsuits with Vixel
Corporation and Raytheon Company, and Brocade may be involved in
similar disputes in the future to protect Brocade’s
intellectual property or as a result of an alleged infringement
of the intellectual property of others. Brocade may also inherit
intellectual property-related disputes from acquisitions of
other companies, products or technologies. In addition, Brocade
may be subject to indemnification obligations with respect to
infringement of third-party intellectual property rights
pursuant to Brocade’s agreements with OEM partners or
customers. These claims and any resulting lawsuits could subject
Brocade to significant liability for damages and invalidation of
proprietary rights. Any such lawsuits, even if ultimately
resolved in Brocade’s favor, would likely be
time-consuming,
expensive to resolve and divert management’s time and
attention. Any potential intellectual property dispute also
could force Brocade to do one or more of the following:


 




































  • 

stop selling, incorporating or using products or services that
use the challenged intellectual property;
 
  • 

obtain from the owner of the infringed intellectual property a
license to the relevant intellectual property, which may require
Brocade to pay royalty or license fees, or license
Brocade’s intellectual property to such owner, which may
not be available on commercially reasonable terms, or at
all; and
 
  • 

redesign those products or services that use technology that is
the subject of an infringement claim.


 



If Brocade is forced to take any of the foregoing actions,
Brocade’s business and results of operations could be
materially harmed.





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This excerpt taken from the BRCD 10-K filed Jan 9, 2007.
Third-parties may bring infringement claims against Brocade, which could be time-consuming and expensive to defend.
 
In recent years, there has been significant litigation in the United States involving patents and other intellectual property rights. Brocade has in the past been involved in intellectual property-related disputes, including lawsuits with Vixel Corporation, Raytheon Company and McDATA, and Brocade may be involved in such disputes in the future, to protect Brocade’s intellectual property or as a result of an alleged infringement of the intellectual property


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of others. Brocade also may be subject to indemnification obligations with respect to infringement of third party intellectual property rights pursuant to Brocade’s agreements with OEM partners or customers. These claims and any resulting lawsuit could subject Brocade to significant liability for damages and invalidation of proprietary rights. Any such lawsuits, even if ultimately resolved in Brocade’s favor, would likely be time-consuming and expensive to resolve and would divert management’s time and attention. Any potential intellectual property dispute also could force Brocade to do one or more of the following:
 
  •  stop selling, incorporating or using products or services that use the challenged intellectual property;
 
  •  obtain from the owner of the infringed intellectual property a license to the relevant intellectual property, which may require Brocade to pay royalty or license fees, or to license Brocade’s intellectual property to such owner, and which may not be available on commercially reasonable terms or at all; and
 
  •  redesign those products or services that use technology that is the subject of an infringement claim.
 
If Brocade is forced to take any of the foregoing actions, Brocade’s business and results of operations could be materially harmed.
 
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