Note 17 - Legal Matters

12 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

17. LEGAL MATTERS

As of

June 30,

2020

, the Company is involved in the following matter

s

 described below:

• As previously reported, the Company has launched a program focused on enforcing its intellectual property and, in particular, certain of its patent portfolio. The Company has continued to enforce its intellectual property by filing complaints against certain parties alleging infringement on the Company's patents relating to its wireless audio technology. In the year ended  June 30, 2020 , the Company recovered approximately $385,000 of fees and costs that were involved with the underlying efforts to enforce this portfolio. These costs primarily relate to legal fees, expenses, time and effort of its management team, and other costs involved with the underlying efforts to enforce certain aspects of its portfolio. In the event that a monetary award or judgment is received by the Company in connection with these complaints, all or portions of such amounts may be due to third parties. Depending on the response to and the underlying results of the enforcement program, the Company may continue to litigate its claims, enter into licensing arrangements or reach some other outcome potentially advantageous to its competitive position.  

• The Company was notified by One-E-Way, Inc. that some of the Company's wireless products may infringe on certain One-E-Way patents.  No lawsuits involving these allegations have yet been filed and served on the Company.  The Company is currently investigating whether these allegations have any merit.  Depending on the results of the investigation and the defense of these allegations, the ultimate resolution of this matter may have a material effect on the Company's financial statements.  The Company estimates that this matter will ultimately be resolved at a cost of approximately $20,000 to $200,000 and has accrued the lower amount as of June 30, 2020.

The ultimate resolution of these matters is

not

determinable unless otherwise noted.

We also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving these claims against us, individually or in aggregate, will

not

have a material adverse impact on our Consolidated Financial Statements, these matters are subject to inherent uncertainties and management's view of these matters

may

change in the future.