SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) May 20, 2003
PHOTOWORKS, INC.
(exact name of registrant as specified in its charter)
| Washington | 000-15338 | 91-0964899 |
| (State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) |
|
(Address of principal executive offices and zip code) |
Registrant's telephone number, including area code: (206) 281-1390
Item 5. Other Events
On May 15, 2003, the International Trade Commission upheld a penalty assessment of $1.6 million against the Company for violation of a prior cease and desist order involving patents owned by Fuji Photo Film Co. Ltd. for single-use cameras.
This action by the International Trade Commission is subject to appeal to the Federal District Court of Appeals. The Company believes it has strong arguments regarding the infringement determination and $1.6 million penalty and intends to aggressively pursue such challenges to the International Trade Commission order. If the Company is required to pay the $1.6 million penalty, it will have a significant impact on the financial condition, results of operations and liquidity of the Company.
The Company will accrue the $1.6 million penalty in its financial statements for the quarter ending June 28, 2003.
PHOTOWORKS, INC.
By: /s/ Loran Cashmore Bond
Loran Cashmore Bond
Vice President/Chief Accounting Officer
Date: May 22, 2003
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