Blackberry 2014 Annual Report Download - page 48

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and it may not be aware of all the factors that may affect its business in foreign jurisdictions. The Company will be subject to a
number of risks associated with its expanding international business operations and sales and marketing activities that may
increase liability, costs, lengthen sales cycles and require significant management attention. These risks include:
• compliance with the laws of the United States, Canada and other countries that apply to the Company’s
international operations, including import and export legislation, lawful access and privacy laws (as discussed
further below);
• compliance with existing and emerging anti-corruption laws, including the Foreign Corrupt Practices Act of the
United States, the Corruption of Foreign Public Officials Act of Canada and the UK Bribery Act;
• increased reliance on third parties to establish and maintain foreign operations;
• the complexities and expense of administering a business abroad;
• complications in compliance with, and unexpected changes in, foreign regulatory requirements, including
requirements relating to content filtering and requests from law enforcement authorities;
• trading and investment policies;
• consumer protection laws that impose additional obligations on the Company or restrict the Company’s ability
to provide limited warranty protection;
• instability in economic or political conditions, including inflation, recession and actual or anticipated military
conflicts, social upheaval or political uncertainty;
• foreign currency fluctuations;
• foreign exchange controls and cash repatriation restrictions, including those relating to Venezuela and Argentina
and certain other jurisdictions (as discussed further above);
• tariffs and other trade barriers;
• difficulties in collecting accounts receivable;
• potential adverse tax consequences;
• uncertainties of laws and enforcement relating to the protection of intellectual property or secured technology;
• litigation in foreign court systems;
• unauthorized copying or use of the Company’s intellectual property, including software, know-how or trade
secrets;
• cultural and language differences;
• difficulty in managing a geographically dispersed workforce in compliance with local laws and customs that
vary from country to country; and
• other factors, depending upon the country involved.
There can be no assurance the policies and procedures implemented by the Company to address or mitigate these risks will be
successful, that Company personnel will comply with them or that the Company will not experience these factors in the future
or that they will not have a material adverse effect on the Company’s business, results of operations and financial condition.
See also the Risk Factor entitled “The Company’s ability to maintain or increase its liquidity, its existing cash balance, its
ability to access existing or potential alternative sources of funding, the sufficiency of its financial resources, and its ability to
service its debt, could be adversely affected by its ability to offer competitive products and services in a timely manner at
competitive prices, its ability to collect accounts receivables in jurisdictions with foreign currency controls and its access to the
capital markets.”
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 course of its business, the Company receives general commercial claims related to the conduct of its business and the
performance of its products and services, employment claims and other litigation claims, which may potentially include claims
relating to improper use of or access to personal data. For example, the Company is facing class action suits as a result of the
service interruption that occurred in October 2011. Litigation resulting from these claims could be costly and time-consuming
and could divert the attention of management and key personnel from the Company’s business operations. The complexity of
the technology involved and the inherent uncertainty of commercial, class action, employment and other litigation increases
these risks. In recognition of these considerations, the Company may enter into material settlements. If the Company is
unsuccessful in its defense of material litigation claims or is unable to settle the claims, the Company may be faced with
significant monetary damages or injunctive relief against it that could have a material adverse effect on the Company’s
business, BlackBerry brand, results of operations and financial condition. Administrative or regulatory actions against the
Company or its employees could also have a material adverse effect on the Company’s business, BlackBerry brand, results of
operations and financial condition. See also “Legal Proceedings” in this AIF.
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