Blackberry 2012 Annual Report Download - page 70

The Company’s business depends on a strong brand, and failing to maintain and enhance our brand would hurt our
ability to expand our base of users, customers and partners.
The brand identity that the Company has developed has significantly contributed to the success of its business. Maintaining and
enhancing the “BlackBerry” brand is critical to expanding the Company’s base of users, customers and partners. The Company
believes that the importance of brand recognition will increase due to the relatively low barriers to entry in the wireless
communications industry. The “BlackBerry” brand may be negatively impacted by a number of factors, including service
interruptions, product malfunctions, product performance not meeting expectations, a user experience which does not compare to that
of RIM’s competitors, data privacy and security issues, and perceptions of the future success of the Company’s products and services.
If the Company fails to maintain and enhance the “BlackBerry” brand, or if the Company incurs excessive expenses in this effort, the
Company’s business, results of operations, and financial condition will be materially and adversely affected. Maintaining and
enhancing the “BlackBerry” brand will depend largely on the Company’s ability to be a technology leader and continue to provide
high-quality products and services on a timely basis and at competitive prices, which the Company may not be able to do
successfully.
The Company is subject to risks inherent in foreign operations.
Sales outside North America represented approximately 70% of the Company’s revenue in fiscal 2012 compared to 54% in fiscal
2011. The North American market, particularly the United States, has become increasingly competitive and the Company intends to
continue to pursue international market growth opportunities, such that international sales are likely to continue, at least in the near
future, to account for an increasing portion of the Company’s revenue. The Company has committed, and intends to commit,
significant resources to its international operations and sales and marketing activities. The Company maintains offices in a number of
foreign jurisdictions, and expects to open additional offices in other countries. The Company has limited experience conducting
business in some of these jurisdictions outside of North America, and it may not be aware of all the factors that may affect its
business in foreign jurisdictions. The Company will be subject to a number of risks associated with its expanding international
business operations and sales and marketing activities that may increase liability, costs, lengthen sales cycles and require significant
management attention. These risks include:
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• compliance with the laws of the United States, Canada and other countries that apply to the Company’s international operations,
includin
g
im
p
ort and ex
p
ort le
g
islation, lawful access and
p
rivac
y
laws;
• compliance with existing and emerging anti-corruption laws, including the Foreign Corrupt Practices Act of the United States,
the Corru
p
tion of Forei
g
n Public Officials Act of Canada and the UK Briber
y
Act;
• increased reliance on third
p
arties to establish and maintain forei
g
n o
p
erations;
• the com
p
lexities and ex
p
ense of administerin
g
a business abroad;