Dell Computer Litigation: IP issues

A review of Dell’s legal proceedings in its most recent 10-Q, shows that IP issues loom large.  There is also shareholder derivative suits but without reviewing the underlying litigation, I can’t determine the business relevance.  However, there are two other suits they mention that do raise questions about their business.

One involves a copyright issue in Germany that Dell is contesting where the government wants to impose a levy on equipment that facilitates making private copyrights of materials.  Could this be an issue for Dell elsewhere?  What about the EU?  Asia? 

The second involves a patent dispute with Lucent Technologies and while in the 10-Q, Dell paints a rosy picture of the likely outcome, they had set aside $55 million for indemity purposes growing out of this dispute which also involves Microsoft.  The issue this raises for me is one of innovation.  Is Dell on the front lines of new technology or more interest in “borrowing” that which has already been developed?

Dell’s latest 10-Q

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