Commitments and Contingencies

12 Months Ended

Dec. 28, 2013

Commitments and Contingencies

Commitments and Contingencies

15. Commitments and Contingencies

Operating Leases

        The Company leases certain facilities under operating lease agreements that expire at various dates through 2022. Some of these arrangements contain renewal options and require the Company to pay taxes, insurance and maintenance costs.

        Rent expense under operating leases was $4.2 million, $4.4 million and $4.5 million for fiscal 2013, 2012 and 2011, respectively. The minimum annual future rentals under the terms of these leases as of December 28, 2013 are as follows (in thousands):

Fiscal Year
2014	$	4,232
2015		3,704
2016		3,058
2017		2,350
2018		1,449
Thereafter		682
Total minimum lease payments	$	15,475

Litigation

• Patent Litigation

        On January 21, 2014, Cresta Technology Corporation ("Cresta Technology"), a Delaware corporation, filed a lawsuit against the Company, Samsung Electronics Co., Ltd., Samsung Electronics America, Inc., LG Electronics Inc. and LG Electronics U.S.A., Inc. in the United States District Court in the District of Delaware, alleging infringement of United States Patent Nos. 7,075,585, 7,265,792 and 7,251,466. The lawsuit relates to the Company's family of television tuner products. Cresta Technology seeks unspecified compensatory and enhanced damages, attorney fees and a permanent injunction. On January 28, 2014, Cresta Technology also filed a complaint with the United States International Trade Commission alleging infringement of the same patents against the Company, Samsung and LG Electronics and seeking to prevent the importation and sale of allegedly infringing products in the United States. The Company intends to vigorously defend against these allegations. At this time, the Company cannot predict the outcome of these matters or the resulting financial impact to it, if any.

        In 2012, MaxLinear, Inc., a Delaware corporation, and the Company engaged one another in three patent infringement lawsuits filed in the United States District Court for the Southern District of California, San Diego Division, and in the United States District Court for the Western District of Texas, Austin Division. The Texas Court determined that the dispute concerning MaxLinear's patents would proceed in the California Court. On May 16, 2013, MaxLinear filed an additional patent infringement lawsuit against the Company in the United States District Court for the Southern District of California. On October 3, 2013, the Company and MaxLinear executed a Settlement Agreement resolving all of the lawsuits between them. MaxLinear granted the Company a license to its patent portfolio for the accused Company products, and the Company granted MaxLinear a license to its patent portfolio for the accused MaxLinear products. As part of the settlement, MaxLinear made a one-time payment of $1.25 million to the Company. The Company and MaxLinear also entered into a 3-year covenant not to sue and agreed to dismiss all of the pending cases.

Other

        The Company is involved in various other legal proceedings that have arisen in the normal course of business. While the ultimate results of these matters cannot be predicted with certainty, the Company does not expect them to have a material adverse effect on its consolidated financial statements.