Blackberry 2012 Annual Report Download - page 173

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Risks Related to Intellectual Property
In the past, the Company has followed the practice of providing specific quantitative forward-looking guidance to its shareholders
with respect to certain financial metrics for the subsequent fiscal quarter in its quarterly earnings press releases. On March 29, 2012,
the Company announced that it will no longer provide
3
• restrictions on import and use of RIM’s products and services in certain countries due to encryption of the products and
services;
• reliance on strategic alliances and relationships with third-party network infrastructure developers, software platform
vendors and service platform vendors, including RIM’s ability to promote and advance the development of an ecosystem
of a
pp
lications and services for the BlackBerr
y
10 smart
p
hones and the BlackBerr
y
Pla
y
Book tablets;
• RIM’s abilit
y
to ex
p
and and enhance BlackBerr
y
A
pp
World™;
• RIM’s reliance on third-
p
art
y
manufacturers for certain
p
roducts and its abilit
y
to mana
g
e its
p
roduction
p
rocess;
• the continued quality and reliability of RIM’s products and services and the potential effect of defects in products and
services;
• general commercial litigation, class action and other litigation claims, including purported class action claims relating to
RIM’s o
p
erations;
• risks associated with litigation claims against the Company arising from the Company’s practice of providing forward-
looking guidance to its shareholders with respect to certain financial metrics, including the Company’s practice of updating
p
revious
g
uidance where circumstances warrant;
• effective mana
g
ement of the Com
p
an
y
’s
p
ast
g
rowth and its on
g
oin
g
develo
p
ment of service and su
pp
ort o
p
erations;
•
p
otential char
g
es relatin
g
to the im
p
airment of
g
oodwill or other lon
g
-lived assets recorded on RIM’s balance sheet;
• risks as a result of actions of activist shareholders;
•
g
overnment re
g
ulation of wireless s
p
ectrum and radio fre
q
uencies;
• reduced s
p
endin
g
b
y
customers due to the uncertaint
y
of economic and
g
eo
p
olitical conditions;
• risks associated with ac
q
uisitions, investments and other business initiatives;
• forei
g
n exchan
g
e risks as the Com
p
an
y
transacts
g
loball
y
in currencies other than the U.S. dollar;
• re
g
ulation, certification and health risks, and risks relatin
g
to the misuse of RIM’s
p
roducts;
• tax liabilities, resultin
g
from chan
g
es in tax laws or otherwise, associated with RIM’s worldwide o
p
erations;
• changes in interest rates affecting RIM’s investment portfolio and its revolving credit facility and the creditworthiness of
its investment
p
ortfolio;
•
p
ro
p
osed re
g
ulations relatin
g
to conflict minerals; and
• risks related to the failure of the Company’s suppliers, subcontractors, third-party distributors and representatives to use
acce
p
table ethical business
p
ractices or com
p
l
y
with a
pp
licable laws.
• third-party claims for infringement of intellectual property rights by RIM and the outcome of any litigation with respect
thereto;
• RIM’s abilit
y
to successfull
y
obtain
p
atent or other
p
ro
p
rietar
y
or statutor
y
p
rotection for its technolo
g
ies and
p
roducts;
• RIM’s abilit
y
to obtain ri
g
hts to use software or com
p
onents su
pp
lied b
y
third
p
arties; and
• the
p
otential im
p
act of co
py
ri
g
ht levies in numerous countries.
®