4. Contingencies

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Contingencies

Zoom currently has one outstanding complaint against it.  On October 15, 2012, Telecomm Innovations LLC filed a complaint against Zoom Telephonics and also filed complaints against many other companies including various dial-up modem producers and many fax machine producers.  The only named Zoom product in the complaint was Zoom’s Model 3095 dial-up modem, and we believe that this product has a license through Conexant for the two patents mentioned in the complaint.  However, other Zoom dial-up modem products may be subject to the patents asserted in the complaint, and a small percentage of these did not use Conexant chipsets.  Telecomm Innovations has recently discovered that there was a gap in the chain of title for the asserted patents and it may not have had standing at the time the complaint was filed.  We expect Telecomm to dismiss the complaint and then refile the claim with a purported correction to the chain of title.