Comcast 2014 Annual Report Download - page 42

Table of Contents
tribution or display of copyrighted material negatively affects our ability to generate revenue from the legitimate sale of our content,
as well as from the sale of advertising in connection with our content, and increases our costs due to our active enforcement of our
intellectual property rights. For example, NBCUniversal has brought a suit against a multichannel video provider to challenge the
commercial-
skipping functionality in its DVR. Additionally, legislation has been proposed in the U.S. Congress that seems intended
to legitimize the unauthorized online streaming of local broadcast content. We cannot predict whether such legislation will be
enacted or how any such legislation would ultimately affect our businesses.
Piracy and other unauthorized uses of content are made easier, and the enforcement of intellectual property rights more
challenging, by technological advances allowing the conversion of programming, films and other content into digital formats, which
facilitates the creation, transmission and sharing of high-
quality unauthorized copies. In particular, piracy of programming and films
through unauthorized distribution on DVDs, peer-to-
peer computer networks and other platforms continues to present challenges
for our cable networks, broadcast television and filmed entertainment businesses. While piracy is a challenge in the United States,
it is particularly prevalent in many parts of the world that lack developed copyright laws, effective enforcement of copyright laws and
technical protective measures like those in effect in the United States. If any U.S. or international laws intended to combat piracy
and protect intellectual property rights are repealed or weakened or are not adequately enforced, or if the legal system fails to adapt
to new technologies that facilitate piracy, we may be unable to effectively protect our rights, and the value of our intellectual
property may be negatively impacted and our costs of enforcing our rights may increase. See Item 1, Business and refer to the
“Legislation and Regulation — Other Areas of Regulation — Intellectual Property” discussion for additional information.
Acquisitions and other strategic transactions present many risks, and we may not realize the financial and strategic goals
that were contemplated at the time of any transaction.
From time to time we make acquisitions and investments and enter into other strategic transactions, including our planned
transactions with Time Warner Cable and Charter. In connection with such acquisitions and strategic transactions, we may incur
unanticipated expenses, fail to realize anticipated benefits, have difficulty incorporating the acquired businesses, disrupt
relationships with current and new employees, customers and vendors, incur significant debt, or have to delay or not proceed with
announced transactions such as the Time Warner Cable or Charter transactions. Additionally, regulatory agencies, such as the
FCC or DOJ, may impose additional restrictions on the operation of our business as a result of our seeking regulatory approvals for
any significant acquisitions and strategic transactions. The occurrence of any of these events could have an adverse effect on our
businesses.
Labor disputes, whether involving employees or sports organizations, may disrupt our operations and adversely affect
our businesses.
Many of NBCUniversal’
s employees, including writers, directors, actors, technical and production personnel and others, as well as
some of our on-air and creative talent and cable communications’
employees, are covered by collective bargaining agreements or
works councils. Most of NBCUniversal
’s collective bargaining agreements are industry-
wide agreements, and we may lack practical
control over the negotiations and terms of the agreements. If we are unable to reach agreement with a labor union before the
expiration of a collective bargaining agreement, our employees who were covered by that agreement may have a right to strike or
take other actions that could adversely affect us, which could disrupt our operations and reduce our revenue, and the resolution of
any disputes may increase our costs. There can be no assurance that we will renew our collective bargaining agreements as they
expire or that we can renew them on favorable terms or without any work stoppages.
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Comcast 2014 Annual Report on Form 10
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