Adobe 2010 Annual Report Download - page 36

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36
Training
We inform customers about the use of our products through on-line informational services on our Website
(www.adobe.com) and through a growing series of how to books published by Adobe Press pursuant to a joint publishing
agreement with Peachpit Press. In addition, we develop tests to certify independent trainers who teach Adobe software
classes. We sponsor workshops, work with professional associations and user groups, and conduct regular beta testing
programs. We also provide paid education services to enhance our customers’ use of our Omniture solutions, including a
wide range of traditional and online training and certifications delivered by our team of training professionals.
Investments
We make direct investments in privately-held companies. We enter into these investments with the intent of securing
financial returns as well as for strategic purposes as they often increase our knowledge of emerging markets and technologies,
as well as expand our opportunities to provide Adobe products and services. We also owned a limited partnership interest in
Adobe Ventures IV L.P. (“Adobe Ventures”) that invested in early stage companies with innovative technologies. During
fiscal 2010, Adobe Ventures was dissolved and all remaining assets were distributed to the partners. Adobe Ventures was
managed by Granite Ventures, an independent venture capital firm and sole general partner of Adobe Ventures.
PRODUCT DEVELOPMENT
As the software industry is characterized by rapid technological change, a continuous high level of investment is
required for the enhancement of existing products and services and the development of new products and services. We
develop our software internally as well as acquire products or technology developed by others by purchasing the stock or
assets of the business entity that held ownership rights to the technology. In other instances, we have licensed or purchased
the intellectual property ownership rights of programs developed by others with license or technology transfer agreements
that may obligate us to pay a flat license fee or royalties, typically based on a dollar amount per unit shipped or a percentage
of the revenue generated by those programs.
During fiscal years ended December 3, 2010, November 27, 2009 and November 28, 2008, our research and
development expenses were $680.3 million, $565.1 million and $662.1 million, respectively.
PRODUCT PROTECTION
We regard our software as proprietary and protect it under the laws of copyrights, patents, trademarks and trade secrets.
We protect the source code of our software programs as trade secrets and make source code available to third parties only
under limited circumstances and specific security and confidentiality constraints.
Our products are generally licensed to end users on a “right to use” basis pursuant to a license that restricts the use of the
products to a designated number of devices. We also rely on copyright laws and on “shrink wrap” and electronic licenses that
are not physically signed by the end user. Copyright protection may be unavailable under the laws of certain countries and
the enforceability of “shrink wrap” and electronic licenses has not been conclusively determined in all jurisdictions. We also
offer many products under a SaaS or on-demand model, where software is provided on demand to customers, generally
through a Web browser. The use of these products is generally governed by terms of use associated with these products.
Policing unauthorized use of computer software is difficult and software piracy is a persistent problem for the software
industry. This problem is particularly acute in international markets. We conduct anti-piracy programs directly and through
certain external software associations. In addition, we have activation technology in certain products to guard against illegal
use and will continue to do so in certain future products.
EMPLOYEES
As of December 3, 2010, we employed 9,117 people. We have not experienced work stoppages and believe our
employee relations are good.
AVAILABLE INFORMATION
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to
reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, are
available free of charge on our Investor Relations Website at www.adobe.com as soon as reasonably practicable after we
electronically file such material with, or furnish it to, the SEC. The information posted on our Website is not incorporated
into this report.