Note 9 Commitments and Contingencies Litigation and Patent Reexaminations The Company owns numerous patents and continues to enlarge and strengthen its patent portfolios which cover different aspects of the Company s technology innovations with various claim scopes. The Company intends to vigorously assert its patent rights against infringers through civil litigation and to defend its patents against challenges made by way of reexamination requests with the United States Patent and Trademark Office ( USPTO ). The Company spends substantial resources in various activities to protect its intellectual property, and these activities may continue for the foreseeable future. There can be no assurance that any ongoing or future patent protection and litigation activities will be successful. The Company is also subject to litigation claims that it has infringed on the intellectual property of others. The Company intends to defend such lawsuits vigorously. Litigation, whether or not determined in the Company s favor or settled, is costly and time-consuming and could divert management s attention and resources, which could adversely affect the Company s business. The Company is unable to assess the possible outcome of these matters. However, because of the nature and inherent uncertainties of litigation, should the outcome of these actions be unfavorable, the Company s business, financial condition, results of operations or cash flows could be materially and adversely affected. Additionally, the outcome of pending litigation, and the related patent reexaminations, as well as any delay in their resolution, could affect the Company s ability to license its intellectual property in the future or to protect against competition in the current and expected markets for its products. Google Litigation In May 2008, the Company initiated discussions with Google, Inc. ( Google ) based on information and belief that Google had infringed on a U.S. patent owned by the Company, U.S. Patent No. 7,289,386 ( the  386 patent ), which relates