It certainly appears to me that Cisco is laying the groundwork for their shareholders to understand the payout that is coming and the negative impact it may have on shareholder value.
Nobody has revealed how much the indemnification price tag might be.
THis is new territory and so for Cisco to on the one hand make this seem like no big deal...but then on the other hand say they don't have a lot of experience with indemnification is a bit disingenuous.
We can all see the tide has really begun to turn ....
Who's the indemnification expert here? Does it work like insurance when a $ # is establish & the indemnifier pays dose the indemnifier have what they have in the insurance industry reinsurance...IE: can the indemnifier ( for protection) take out an insurance policy that would cover amts beyond the amt they said they would indemnify?
Outstanding find!! I wonder what this bit of info would mean to our pps if we were still trading? Thanks Long!!! And thank you to everyone else here as well. I, like the rest of the silent majority here, really do appreciate the efforts being put forth to keep everyone informed and up to date.
During the CAFC hearing last year, Chen remarked to Wayne (Cisco Lawyer) during a brief exchange that the other patents didnt have the same problems that '822 had. That was straight from the tech CAFC judge, and Wayne had to hear it and take it back to Cisco.
Regardless of the merit of these claims, they can be time-consuming, result in costly litigation and diversion of technical and management personnel, or require us to develop a non-infringing technology or enter into license agreements. Where claims are made by customers, resistance even to unmeritorious claims could damage customer relationships. There can be no assurance that licenses will be available on acceptable terms and conditions, if at all, or that our indemnification by our suppliers will be adequate to cover our costs if a claim were brought directly against us or our customers. Furthermore, because of the potential for high court awards that are NOT necessarily predictable, it is NOT UNUSUAL to find even arguably unmeritorious claims settled for significant amounts.