CISCO SYSTEMS, INC. February 16th, 2021 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Form 10-Q for the Quarter Ended January 23, 2021
ONLY 2 listed re: INDEMNIFICATIONS > Chanbond and Sprint Communications Co. $139.8 million final judgement from March 3rd, 2017 trial win in Kansas. The Court awarded Sprint pre- and post-judgment interest of approximately $10 million and denied TWC's post-trial motions and appeals. Charter reported that it paid the judgment in full. (Charter Communications, Inc. acquired Time Warner Cable [TWC] in May 2016)
page 32-33 We also have been asked to indemnify certain of our service provider customers that have been subject to patent infringement claims asserted by Chanbond, LLC in the United States District Court for the District of Delaware on September 21, 2015. Chanbond alleges that 13 service provider companies, including among others, Comcast Corporation, Charter Communications, Inc., Time Warner Cable, Inc. (subsequently acquired by Charter), Cox Communications, Inc., and Cablevision Systems Corporation, infringe three patents by providing high speed cable internet services to their customers utilizing cable modems and cable modem termination systems, consistent with the DOCSIS 3.0 standard, provided by us and other manufacturers generally used in combination with each other. Chanbond seeks monetary damages and injunctive relief against the service provider customers, although two of the asserted patents expire on June 19, 2021, and the third expires on September 17, 2021. On October 13, 2020, the Court set Chanbond's case against Cox for trial on May 17, 2021. The other cases against the remaining service provider defendants have not yet been set for trial. We believe that the service provider defendants have strong non-infringement, invalidity and other defenses and that Chanbond will not be able to meet its burden required for injunctive relief. Due to uncertainties surrounding the litigation processes, we are unable to reasonably estimate the ultimate outcome of the cases at this time, but should Chanbond prevail in its cases against the service provider defendants, we do not believe that any potential indemnity liability would be material. In addition, we have entered into indemnification agreements with our officers and directors, and our Amended and Restated Bylaws contain similar indemnification obligations to our agents. It is not possible to determine the maximum potential amount under these indemnification agreements due to uncertainties in the litigation process, coordination with other suppliers and the defendants in these cases, and the unique facts and circumstances involved in each particular agreement. Historically, payments made by us under these agreements have not had a material effect on our operating results, financial position, or cash flows.
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