Blackberry 2013 Annual Report Download - page 83

Failure of the Compan
y
’s suppliers, subcontractors, third-party distributors and representatives to use acceptable
ethical business practices or to comply with applicable laws could negatively impact the Company’s business.
The Company expects its suppliers and subcontractors to operate in compliance with applicable laws, rules and regulations regarding
working conditions, labor and employment practices, environmental compliance, anti-corruption (including the Foreign Corrupt
Practices Act of the United States, the Corruption of Foreign Public Officials Act of Canada and the UK Bribery Act), and patent and
trademark licensing as detailed in the Company’s Supplier Code of Conduct. However, the Company does not directly control their
labor and other business practices. If one of the Company’s suppliers or subcontractors violates applicable labor, anti-corruption or
other laws, or implements labor or other business practices that are regarded as unethical, or if a supplier or subcontractor fails to
comply with procedures designed by the Company to adhere to existing or proposed regulations, the shipment of finished products to
the Company could be interrupted, orders could be canceled, relationships could be terminated, the Company’s reputation could be
damaged, and the Company may be subject to liability. Any of these events could have a negative impact on the Company’s business,
results of operations and financial condition.
Copyright levies in numerous countries for the sale of products may negatively impact the Company’s business.
The Company faces the possibility of copyright levies from collecting societies in European and other countries for the sale of
products such as BlackBerry smartphones and tablets that might be used for the private copying of copyright protected works. The
collecting societies argue that copyright levies should apply to such products because they include audio/video recording
functionality, such as an MP3 player or storage capability, despite the fact that such products are not primarily intended to act as a
recording device. If these levies are imposed, the Company’s financial results may be negatively impacted. Furthermore, the
Company may be required to pay copyright levies on products and services used by consumers to copy or stream copyrighted works.
Non-compliance with these legal requirements could result in fines, imprisonment of local executives, and sanctions on the import
and/or use of the Company’s products or services.
The market price of the Company’s common shares is volatile.
The market price of the Company’s outstanding common shares has been and continues to be volatile due in part to highly volatile
markets generally, particularly for technology company shares. A variety of events, including news announcements by the Company
or its competitors, trading volume, general market trends for technology companies and other factors, could result in wide fluctuations
in the market price for its common shares. The Company’s share price may also be affected by factors such as the performance of
other technology companies, increasing market share of such companies, announcements by or results of the Company’s competitors,
results of existing or potential litigation, updates to forward-looking financial guidance, announcements regarding new products and
services and market rumors.
The Company’s financial results are difficult to forecast and such results may not meet the expectations of analysts or investors,
which would contribute to the volatility of the market price
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