Blackberry 2012 Annual Report Download - page 66

The interpretation of privacy and data protection laws, and their application to the Internet and mobile communications, in a number
of jurisdictions is unclear and in a state of flux. There is a risk that these laws may be interpreted and applied in conflicting ways from
country to country and in a manner that is not consistent with the Company’s current data protection practices. Complying with these
varying international requirements could cause the Company to incur additional costs and change the Company’s business practices.
In addition, because the Company’s services are accessible worldwide, certain foreign jurisdictions may claim that the Company is
required to comply with their laws, even where the Company has no local entity, employees, or infrastructure.
The Company could be adversely affected if legislation or regulations are expanded to require changes in its business practices, if
governmental authorities in the jurisdictions in which the Company does business interpret or implement their legislation or
regulations in ways that negatively affect its business or if end users allege that their personal information is not collected, stored,
transmitted, used or disclosed appropriately or in accordance with the Company’s end user agreements and privacy policies or
applicable privacy and data protection laws. If the Company is required to allocate significant resources to modify its BlackBerry
wireless solution or its existing security procedures for the personal information that it transmits and stores, its business, results of
operations and financial condition may be adversely affected.
The Company’s network carriers or other customers, partners or members of its ecosystem may also have differing expectations or
impose particular requirements for the collection, storage, processing and transmittal of user data or personal information in
connection with the BlackBerry wireless solution. Such expectations or requirements could subject the Company to additional costs,
liabilities or negative publicity, and limit its future growth. Further, any failure by the Company to protect end users’ privacy and data
could result in a loss of user confidence in the Company’s services, impact the Company’s reputation and ultimately result in a loss of
users, which could adversely affect the Company’s business.
In addition, governmental authorities may use the Company’s products to access the personal data of individuals without RIM’s
involvement, for example, through so-called lawful intercept capability of network infrastructure. Even perceptions that the
Company’s products do not adequately protect personal or consumer data collected by RIM, made available to RIM or stored in or
through RIM’s products or that they are being used by third parties to access personal or consumer data could impair the Company’s
sales or its reputation and brand value.
In addition, laws in various countries relating to the liability of providers of online services for activities of their users and other third
parties are currently being tested by a number of claims, which include actions for invasion of privacy, libel, slander, and other tort
claims, unlawful activity, copyright and trademark infringement, and other theories based on the nature and content of the materials
searched, the ads posted, or the content generated by users. Certain jurisdictions are also testing the liability of providers of online
services for activities of their users and other third parties. Any ruling that imposes liability on providers of online services for
activities of their users and other third parties could harm the Company’s business.
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