Blackberry 2012 Annual Report Download - page 54

In December 2011, the Company was served with four purported class actions relating to third party (Carrier IQ) recording software
allegedly installed on smartphones. The Company believes that a class action proceeding in these circumstances is without merit and
intends to vigorously defend itself. Two of the four actions have already been dismissed and the Company is in discussions with
counsel for the other two representative plaintiffs to seek the dismissal of those cases as well
Also in December 2011, a purported class action was filed against the Company relating to promotional activities in respect of the
BlackBerry PlayBook tablet. The Company believes that a class action proceeding in these circumstances is without merit and intends
to vigorously defend itself.
RISK FACTORS
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nvestors in the Company’s common shares should carefully consider the following risks, as well as the other information contained
in this AIF, and Management’s Discussion and Analysis of Financial Condition and Results of Operations for the fiscal year ended
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arch 3, 2012. If any of the following risks actually occurs, the Company’s business could be materially harmed. The risks and
uncertainties described below are not the only ones the Company faces. Additional risks and uncertainties, including those of which
the Company is currently unaware or the Company currently deems immaterial, may also have a material adverse effect on the
Company’s business.
Risks Related to the Company’s Business and its Industry
The Company may not be able to enhance its current products and services, or develop new products and services, in a
timely manner or at competitive prices.
The wireless communications industry is characterized by increasingly rapid technological change, evolving industry standards,
frequent new product introductions, frequent market price reductions, constant improvements in performance characteristics and short
product life cycles. To keep pace with technological developments, satisfy increasing customer requirements and achieve product
acceptance, the Company’s future success depends upon its ability to enhance its current products and services, to address competing
technologies and products developed by other companies, and to continue to develop and introduce new products and services
offering enhanced performance and functionality on a timely basis at competitive prices. In particular, the Company’s future success
will be significantly dependent on its ability to successfully complete its transition to its next-generation of BlackBerry 10
smartphones, which are currently expected to launch in the latter part of calendar 2012. The Company is also focused on developing
an integrated services offering that leverages RIM’s strengths such as BBM, security and manageability that will generate service
revenues and enable the Company to recover the costs associated with its network infrastructure. The process of developing new
technology is complex and uncertain, and involves time, substantial costs and risks, which are further magnified when the
development process involves a transition to a new technology platform, as is the case with the Company’s QNX-based BlackBerry
10 smartphones. The Company’s inability, for technological or other reasons, some of which may be beyond the Company’s control,
to enhance, develop and introduce products and services in a timely manner, or at all, in response to changing market conditions or
customer requirements could have a material adverse effect on the Company’s business, results of operations and financial condition
or could result in its products and services not achieving market acceptance or becoming obsolete. In addition, if the Company fails to
accurately predict emerging technological trends and the changing needs of customers and end-users, or the features of its new
products and services, including its BlackBerry 10 smartphones, do not meet the expectations or achieve acceptance of its customers,
the Company’s business and prospects could be materially harmed.
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