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Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2011

70 Contingent liabilities. This section provides additional information and explains recent changes in the contingencies as described in the consolidated financial statements for the 2010 financial year. Proceedings by Anti-Monopoly Commission in Poland. The Polish Anti- Monopoly Commission (UOKiK) initiated several legal proceedings in 2010 against a number of Polish telecommunications companies. In 2011, these investigations were extended to include further proceedings against PTC. The UOKiK suspects the providers of illegal price fixing. The UOKiK also accuses PTC of infringing customer interests in various ways. PTC believes these allega- tions are unfounded. The outcome and any associated fine cannot be deter- mined at present, nor is it clear how a potential fine would be set. In Poland, the maximum fine is set at 10 percent of the revenues from telecommunications services or 10 percent of taxable revenues. OTE Lannet case. In May 2009, Lannet Communications SA filed a lawsuit claiming compensation for damages of EUR 176 million arising from the allegedly unlawful termination of services (mainly interconnection services, unbundling of ULLs, and leasing of dedicated lines) by OTE. The court hearing set for February 17, 2011 was postponed until May 30, 2013. Eutelsat arbitration proceedings. On April 12, 2011, Deutsche Telekom AG received an application from Eutelsat S.A. for initiation of ICC arbitration pro- ceedings against Deutsche Telekom AG and Media Broadcast GmbH. Eutelsat particularly requested clarification regarding a right of use of a certain orbit position to which Eutelsat believes it has a long-standing entitlement and the term of an agreement concluded between Deutsche Telekom AG and Eutelsat S.A. on the use of this orbit position by Eutelsat satellites. Furthermore, Eutelsat is asserting claims to various payments depending on the term of this agree- ment. Deutsche Telekom had transferred its satellite business to Media Broad- cast GmbH, a company with which it is no longer associated. As part of this transaction, Deutsche Telekom AG indemnified the buyer of Media Broadcast GmbH against certain claims, some of which also relate to the agreements with Eutelsat. The financial impact of the proceedings cannot be estimated with sufficient certainty at this point in time. Patent disputes concerning mobile communications and ADSL. Patent management company IPCom GmbH & Co. KG has initiated proceed- ings against Deutsche Telekom AG and individual members of the Board of Management of Deutsche Telekom AG and Telekom Deutschland GmbH for alleged infringement of patents that are supposedly essential to certain stan- dards in the field of mobile communications. In addition to damages, IPCom is seeking abstention from the use of patents in connection with important mobile services, which could lead to their deactivation. Eight infringement proceedings relating to six different patents are currently pending. IPCom lost two of the proceedings on all counts in the court of first instance and has lodged an appeal in each case; others have been suspended. In the remaining cases, hearings will not take place until 2012. Several nullity suits and opposition proceedings are running in parallel to the infringement pro- ceedings to review the validity of the patents that IPCom alleges have been infringed. Further rulings on the pending proceedings are not expected until 2012. CIF Licensing LLC had initiated proceedings against Deutsche Telekom AG for alleged infringement of four patents relating to the use of ADSL devices and processes. After the German Federal Patent Court had declared two of the allegedly infringed patents void in the first instance following a nullity suit filed by Deutsche Telekom, CIF Licensing LLC and Deutsche Telekom signed a settlement on October 20, 2011 under the terms of which CIF Licensing LLC withdrew its infringement proceedings and Deutsche Telekom AG its nullity suits, and Deutsche Telekom AG was granted licenses to the contested patents. Review of contracts in the F.Y.R.O. Macedonia and Montenegro. The audit of the financial statements of Magyar Telekom for the 2005 financial year identi- fied contracts for which it was not possible at the time to fully ascertain an ap- propriate business background. As reported previously, Magyar Telekom’s and Deutsche Telekom’s legal representatives are currently in talks with the U.S. authorities (Department of Justice (DOJ) and Securities and Exchange Commis- sion (SEC)) about the status of the investigation and the possibility of bringing the proceedings to a close. Magyar Telekom and Deutsche Telekom have already reached an agreement with the representatives of the SEC on the terms and conditions for bringing the proceedings to a close by way of settlement; these are still subject to the final approval by the SEC. A provision in the amount of EUR 69 million has been recognized by Magyar Telekom in light of the agree- ment and the continued discussions with the DOJ. The ultimate outcome of these ongoing negotiations cannot be foreseen. It is also not foreseeable at present whether the U.S. authorities will take action and, if so, what kind, if final agreements cannot be reached to conclude their proceedings. Claim for compensation – Slovak Telekom. In 1999, a lawsuit was filed against Slovak Telekom based on the accusation that the legal predecessor of Slovak Telekom had ceased broadcast of an international radio program contrary to the underlying contract. The claimant is demanding EUR 0.1 billion for damages and loss of profit plus interest. The proceedings are pending at Bratislava Regional Court.