Blackberry 2013 Annual Report Download - page 51

As of October 2011, several purported class action lawsuits were filed against the Company in various jurisdictions alleging that
subscribers to BlackBerry services had suffered losses during fiscal 2012 Service Interruption, one of which has been voluntarily
dismissed on May 29, 2012. The Company believes that class action proceedings in these circumstances are without merit and intends
to vigorously defend itself. In two of the cases the Company has negotiated a joint defence agreement with the co-defendants. In all
cases, proceedings are ongoing.
In July 2012, Meta4Hand Inc. (“M4HI”) filed a lawsuit against the Company in the Court of Queen’s Bench, Alberta. The claim
alleges that the Company has used and continues to use M4HI’s trade secrets. The claim is seeking damages and other remedies. The
Company believes the claim has no merit and will vigorously defend itself. M4HI has not yet responded to the Company’s request for
more particulars. Proceedings are ongoing.
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 2, 2013. 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.
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
continues to be significantly dependent on its ability to successfully complete its transition to its next-generation of BlackBerry 10
smartphones, which began with the launch of the first BlackBerry 10 smartphones in the fourth quarter of fiscal 2013. The Company
is also focused on developing an integrated service offering that leverages the Company’s strengths such as BBM, security and
manageability and that will continue to generate service revenue 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 mobile computing platform. 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
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