Blackberry 2015 Annual Report Download - page 41

Table of Contents
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suppliers due to infringing products, or that the Company can secure a license, modification or replacement of a supplier’s
products or services with non-infringing products or services that may otherwise mitigate such damages and losses.
Many intellectual property infringement claims are brought by entities whose principal business model is to secure patent
licensing-based revenue from operating companies. As such entities do not typically generate their own products or services,
the Company cannot deter their patent infringement claims based on counterclaims that they infringe patents in the Company’s
portfolio or by entering into cross-licensing arrangements. Litigation and claims advanced in the International Trade
Commission have 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.
Some of the Company’s competitors have, or are affiliated with companies having, substantially greater resources than the
Company has, and these competitors may be able to sustain the costs of complex intellectual property infringement litigation or
other proceedings to a greater degree and for longer periods of time than the Company can. Regardless of whether third-party
claims that the Company is infringing patents or other intellectual property rights have any merit, these claims could:
• adversely affect the Company’s relationships with its customers;
• be time-consuming to evaluate and defend;
• result in significant costs to defend the Company in litigation or other proceedings;
• result in negative publicity for the Company;
• divert management’s attention and resources;
• cause product and software shipment delays or stoppages;
• subject the Company to significant liabilities;
• require the Company to enter into costly royalty or licensing agreements;
• require the Company to develop possible workaround solutions that may be costly and disruptive to implement;
and
• require the Company to cease certain activities or to cease selling its products and services in certain markets.
In addition to being liable for potentially substantial damages relating to a patent or other intellectual property infringement
action against the Company or, in certain circumstances, the Company’s customers with respect to its products and services, the
Company may be prohibited from developing or commercializing certain technologies or products unless the Company obtains
a license from the holder of the patent or other intellectual property rights. There can be no assurance that the Company will be
able to obtain any such license on commercially reasonable terms, or at all. If the Company does not obtain such a license, its
business, results of operations and financial condition could be materially adversely affected and the Company could be
required to cease related business operations in some markets and restructure its business to focus on continuing operations in
other markets. See also “Legal Proceedings” in this AIF.
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.
The Company is subject to potential litigation claims arising from the Company’s disclosure practices.
The Company is committed to providing a high level of disclosure and transparency and provides commentary that highlights
the trends and uncertainties that the Company anticipates. Any statements that are forward-looking statements are intended to
enable the Company’s shareholders to view the anticipated performance and prospects of the Company from management’s
perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking
statements, as described in this AIF under “Cautionary Note Regarding Forward-Looking Statements”. These forward-looking
statements are made by the Company in light of its experience, its perception of historical and anticipated business trends,
existing conditions in the business at the time and anticipated future developments, including competition and new product
initiatives and expected timing, as well as the Company’s current assessments of the risk factors that affect its business and the