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Legal Dispute
The Company may be in debt due to litigation and claim for damage from an unrelated company in a case on copyright violation of a sport competition live broadcast program. As the trial is not yet completed, the management carefully considers the related laws in order to evaluate the result of the trial. Details of the consideration appear in Note to Financial Statement of 2016. The management believes that there shall be no signi cant damage from the legal dispute; therefore, debt which may occur from the litigation is not recorded in the reserve account. Debt which may occur from the legal dispute does not affect the asset of the Company or subsidiaries over 5% of shareholder’s equity as of December 31, 2016. Moreover, there is no other signi cant dispute which may affect the operation of the Company or subsidiaries.
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