Commitments And Contingencies

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

Commitments and Contingencies

Legal Proceedings

We are not party to any significant legal proceedings, except as described below, but are involved in certain legal actions and claims from time to time arising in the ordinary course of business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on its financial position or results of operations.

Crossroads, Inc. - On September 11, 2013, Crossroads Inc., or Crossroads, filed suit against the Company in the United States District Court for the Western District of Texas alleging non-payment of royalties and breach of the Amended Settlement and License Agreement dated October 2006, and infringement of United States Patent No. 6425035. During the quarter ended September 30, 2014, the Company met with Crossroads to establish a framework to resolve the dispute regarding the Amended Settlement and License Agreement dated October 2006. On September 19, 2014, the United States District Court for the Western District of Texas partially granted the Company’s motion for partial summary judgment as to Crossroads’ claims concerning royalty payments on product sales to Hewlett Packard, or HP, for the period after the Fall of 2011 and at the same time held that the Company is not entitled to the benefit of a license Crossroads granted to HP for the period prior to fall 2011. On February 27, 2015, the Company filed motions to join two inter partes reviews of the validity of the patent that are being conducted by the United States Patent Office and filed a motion to stay the district court litigation pending the entry of final written decisions in the inter partes reviews. On June 16, 2015, the District Court for the Western District of Texas granted the Company's motion to stay the lawsuit and suspended all litigation activity. No trial date has been set. Based on the United States District Court’s response to the Company’s motion for partial summary judgment and prior discussions with Crossroads, it is probable that the Company will resolve this contractual dispute for royalty payments from 2009 to the current period for a total amount in the range of $1.0 million to $3.4 million. As of June 30, 2015, there was a $1.0 million balance accrued, which was charged to general and administrative expense for the year ended December 31, 2014. The actual amount of any settlement could be different than the amount accrued or the currently estimated maximum amount and the difference could be material.