Blackberry 2013 Annual Report Download - page 218

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
liquidity are forward-looking statements that are subject to the inherent risk of difficulties in forecasting the Company’s financial
results for future periods, particularly over longer periods, given the rapid technological changes, evolving industry standards, intense
competition and short product life cycles that characterize the wireless communications industry. See “Cautionary Statement
Regarding Forward-Looking Statements” and the “Risk Factors” section of the Company’s Annual Information Form for the fiscal
year ended March 2, 2013, which is included in the Company’s Annual Report on Form 40-F for the fiscal year ended March 2, 2013,
including the risk factor titled “The Company’s ability to maintain or increase its cash balance could be adversely affected by its
ability to offer competitive products and services in a timely manner at competitive prices.”
The Company does not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K under the
Securities Exchange Act of 1934, as amended, or under applicable Canadian securities laws.
Legal Proceedings
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” in the Company’s Annual Information Form for the fiscal year ended March 3, 2012,
which is included in the Company’s Annual Report on Form 40-F, including the risk factor entitled “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”.
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.
On June 20, 2008, St. Clair Intellectual Property Consultants, Inc. (“St. Clair”) filed a patent infringement lawsuit against the
Company and other defendants in the District of Delaware. The patents in suit include U.S. Patent Nos. 5,138,459; 6,094,219;
6,233,010 and 6,323,899. These patents are generally directed to image
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