Blackberry 2012 Annual Report Download - page 38

RIM protects its technology through a combination of patents, designs, copyrights, trade secrets, confidentiality procedures and
contractual arrangements. RIM seeks to patent key concepts, components, protocols, processes and other inventions that it considers
to have commercial value or that will likely give RIM a technological advantage. Although RIM applies for patent protection
primarily in Canada, Europe and the United States, the Company has filed, and will continue to file, patent applications in other
countries where there exists a strategic technological or business reason to do so. During fiscal 2012, RIM was part of a consortium of
companies that successfully bid for the Nortel patent portfolio. This resulted in a strategic investment on the part of the Company of
$780 million, which is expected to significantly strengthen the Company’s technology platform, as the Company prepares to deliver
next generation platforms and smartphone technologies. To broadly protect RIM’s inventions, the Company has a team of in-house
patent attorneys and also consults with outside patent attorneys who interact with employees, review invention disclosures and
prepare patent applications on a broad array of core technologies and competencies. As a result, RIM owns rights to an array of
patented and patent pending technologies relating to wireless communication technology.
It is RIM’s general practice to enter into confidentiality and non-disclosure agreements with its employees, consultants, contract
manufacturers, customers, potential customers and others to attempt to limit access to and distribution of its proprietary information.
In addition, the Company generally enters into agreements with employees that include an assignment to the Company of all
intellectual property developed in the course of employment.
RIM also enters into various types of licensing agreements related to technology and intellectual property rights. RIM enters certain
of these agreements to obtain rights that may be necessary to produce and sell products into the wireless industry. RIM may also
license its technology and intellectual property to third parties through various licensing agreements.
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roduction
RIM outsources the majority of its manufacturing to specialized global Electronic Manufacturing Services (“EMS”) companies who
are positioned to meet the volumes, scale, cost and quality requirements of the Company. RIM strives to reduce its risk and
dependency on these companies by having various partners located in key geographical locations, thereby increasing leverage on cost,
quality and operational performance. Access to each manufacturing facility is available upon RIM’s demand, and these facilities are
regularly audited by RIM personnel trained in this function. RIM also operates a facility in Waterloo, Ontario that is approximately
242,000 square feet and is primarily focused on New Product Introduction (“NPI”) and research and development related activities.
In the coming year, RIM expects to continue to evolve its supply chain model. RIM will also look to continue to enhance its new
product introduction and supply chain planning activities through further integration with RIM internal research and development
activities.
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