Blackberry 2013 Annual Report Download - page 152

Research In Motion Limited
Notes to the Consolidated Financial Statements
In millions of United States dollars, except share and per share data, and except as otherwise indicated
The Company is involved in litigation in the normal course of its business, both as a defendant and as a plaintiff. The Company
is subject to a variety of claims (including claims related to patent infringement, purported class actions and other claims in the
normal course of business) and may be subject to additional claims either directly or through indemnities against claims that it
provides to certain of its partners and customers. In particular, the industry in which the Company competes has many
participants that own, or claim to own, intellectual property, including participants that have been issued patents and may have
filed patent applications or may obtain additional patents and proprietary rights for technologies similar to those used by the
Company in its products. The Company has received, and may receive in the future, assertions and claims from third parties that
the Company’s products infringe on their patents or other intellectual property rights. Litigation has been and will likely
continue to be necessary to determine the scope, enforceability and validity of third-party proprietary rights or to establish the
Company’s proprietary rights. Regardless of whether claims against the Company have merit, those claims could be time-
consuming to evaluate and defend, result in costly litigation, divert management’s attention and resources, subject the Company
to significant liabilities and could have the other effects that are described in greater detail under “Risk Factors – Risks Related
to Intellectual Property” and “Risk Factors - Risks Related to the Company’s Business and its Industry - The Company is subject
to general commercial litigation, class action and other litigation claims as part of its operations, and it could suffer significant
litigation expenses in defending these claims and could be subject to significant damage awards or other remedies” in the
Company’s unaudited Annual Information Form for the fiscal year ended March 3, 2013, which is included in the Company’s
Annual Report on Form 40-F.
Management reviews all of the relevant facts for each claim and applies judgment in evaluating the likelihood and, if applicable,
the amount of any potential loss. Where it is considered probable for a material exposure to result and where the amount of the
claim is quantifiable, provisions for loss are made based on management’s assessment of the likely outcome. The Company does
not provide for claims that are considered unlikely to result in a significant loss, claims for which the outcome is not
determinable or claims where the amount of the loss cannot be reasonably estimated. Any settlements or awards under such
claims are provided for when reasonably determinable.
Additional lawsuits and claims, including purported class actions and derivative actions, may be filed or made based upon the
Company’s historical stock option granting practices. Management assesses such claims and where considered likely to result in
a material exposure and, where the amount of the claim is quantifiable, provisions for loss are made based on management’s
assessment of the likely outcome. The Company does not provide for claims that are considered unlikely to result in a significant
loss, claims for which the outcome is not determinable or claims where the amount of the loss cannot be reasonably estimated.
Any settlements or awards under such claims are provided for when reasonably determinable.
See the “Legal Proceedings and Regulatory Action” section of the Company’s unaudited Annual Information Form for
additional unaudited information regarding the Company’s legal proceedings, which is included in the Company’s Annual
Report on Form 40-F and “Legal Proceedings” in the unaudited Management’s Discussion and Analysis of financial condition
and results of operations for fiscal 2013.
The Company attempts to ensure that most components essential to the Company’s business are generally available from
multiple sources, however certain components are currently obtained from limited sources within a competitive market which
subjects the Company to significant supply, availability and pricing risks. Many components are at times subject to industry-
wide shortages and significant commodity pricing fluctuations
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(c) Litigation
(d) Concentrations in certain areas of the Company’s business