GOERTEK INC. 
By The Company and all members of the Board confirm that the information disclosed herein is true, accurate and complete, with no false or misleading statements or material omissions.
The announcement is made by GoerTek Inc. (hereinafter, the "Company" or "GoerTek ") in accordance with Chinese Corporate Law, Securities Law and the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange and other related laws, rules and regulations, with respect to litigation proceedings between the Company and Knowles Electronics (Suzhou) Co., Ltd. (Knowles' MEMS microphone manufacturer in China, hereinafter, "Knowles Suzhou").
There are existing patent disputes between the Company and Knowles. For details, please refer to the Company's litigation-related announcements dated as of June 28, 2013, July 13, 2013 and August 31, 2013, published on Securities Times, China Securities Daily and the website designated by the Company for information disclosure - www.cninfo.com.cn.
The Development of Proceedings and Outcome
On July 12, 2013, the Company received the Case Acceptance Notice from the Weifang Intermediate People's Court [(2013)No.:253、254、255、256、257] for the lawsuit filed by GoerTek against Weifang Sanlian Appliance Co., Ltd and Knowles Suzhou for infringement of GoerTek's patent nos. CN200820187748.7, CN201020515145.2, CN201020180613.5, CN200510115448.9, and CN201020001125.3. On May 7, 2014, the Company received an order of judgment regarding case no. 255 [(2013) Wei Zhi Chu Zi No. 255]. The order of judgment held that:
(1) Defendant Weifang Sanlian Appliance Co., Ltd shall immediately stop selling Samsung mobile phone model GT-I9500, which contains microphones infringing GoerTek's utility model patent no. CN201020515145.2;
(2)Defendant Knowles Electronics (Suzhou) Co., Ltd shall immediately stop manufacturing and selling microphone products infringing GoerTek's utility model patent no. CN201020515145.2;
(3) Defendant Knowles Electronics (Suzhou) Co., Ltd shall compensate GoerTek (the complainant)'s economic losses totaled RMB37,200,000.00, which shall be paid off within 30 days from the date of effectiveness of the judgment.
(4) All other claims of complainant GoerTek are dismissed.
Should Knowles Electronics (Suzhou) Co., Ltd fail to fulfill its obligation of monetary payment within the time period prescribed by the law, the interests of payment shall be doubled during the period of delay in performance according to Article 253 of the Civil Procedure Law of the People's Republic of China.
The cost of this lawsuit is RMB 266,800, of which RMB 45,356 shall be paid by the Company, and RMB 221,444 shall be paid by Knowles Suzhou. The cost to preserve evidence is RMB 1,000 and the cost to preserve properties is RMB 5,000. Such RMB 6,000 shall be paid by Knowles Suzhou.
Either party that refuses to accept this judgment as final may appeal to Shandong High People's Court, by submitting an appeal through this court within 15 days of receiving this judgment.
Case Nos. 253, 254 and 257 brought by the Company against Knowles Suzhou in the Weifang Intermediate People's Court are currently in process.
Summary of Other Undisclosed Litigations and Arbitrations
As of the date of this announcement, the Company and its subsidiaries are not involved in any other litigation or arbitration proceedings that are required to be disclosed.
The Possible Effects of the Litigations Disclosed in this Announcement on the Profits of the Company of Current Period and thereafter
It remains unclear what effects of the litigations disclosed in this announcement may have on the profits of the company of current period and thereafter. With respect to the development of the proceedings, the company shall ensure full compliance with the disclosure requirements and make such disclosures accordingly.
Documents available for inspection
Judgment order from Weifang Intermediate People's Court re: Case No. 255 [(2013) Wei Zhi Chu Zi No. 255]
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