Blackberry 2013 Annual Report Download - page 66

The collection, storage, transmission, use and disclosure of user data and personal information could give rise to
liabilities or additional costs as a result of laws, governmental regulations and carrier and other customer requirements
or differing views of personal privacy rights.
The Company transmits and stores a large volume of data, including personal information, in the course of supporting its BlackBerry
wireless solution. This information is increasingly subject to legislation and regulations in numerous jurisdictions around the world
that is intended to protect the privacy and security of personal information as well as the collection, storage, transmission, use and
disclosure of such information. In addition, a number of leading companies in the mobile communications industry, including the
Company, have agreed to privacy principles designed to prompt third-party application developers to conspicuously post privacy
policies with their applications.
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 its 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. In addition, governmental authorities may use the Company’s products to
access the personal data of individuals without Company’s involvement, for example, through so-called lawful intercept capability of
network infrastructure. Even perceptions that the Company’s products do not adequately protect users’ privacy or data collected by
Company, made available to Company or stored in or through the Company’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.
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