ANNUAL REPORT 2017
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NOTE 18. LITIGATION

ASMI is a party to various legal proceedings incidental to its business. As is the case with other companies in similar industries, the Company faces exposure from actual or potential claims and legal proceedings. Although the ultimate result of legal proceedings cannot be predicted with certainty, it is the opinion of the Company’s management that the outcome of any claim which is pending, either individually or on a combined basis, will not have a material effect on the financial position of the Company, its cash flows and result of operations.

In 2007, ASMI licensed Hitachi Kokusai under certain of its patents in the field of Atomic Layer Deposition. The license agreement was renewed in 2012.

On August 30, 2017, ASMI initiated an arbitration with the American Arbitration Association against Hitachi Kokusai for breach of the license agreement between the parties. At this point of time it is unpredictable when the arbitration will be completed.

Following the expiration of the parties’ patent license agreement, ASMI filed, on December 1, 2017, a suit for patent infringement against Hitachi Kokusai and its US subsidiary in the US District Court for the Northern District of California. ASMI has asserted infringement of three of its patents and is seeking both an injunction and monetary damages.

Hitachi Kokusai subsequently filed suit on December 1, 2017 for alleged patent infringement against ASMI in the US District Court for the Northern District of California. Hitachi Kokusai has asserted seven patents and also seeks an injunction and monetary damages.  No specific monetary amount has been requested to date.

Thereafter, on February 20, 2018, Hitachi Kokusai initiated litigation in the District of Oregon asserting four patents against ASMI. ASMI is evaluating the allegations in the Oregon action.

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