Comcast 2015 Annual Report Download - page 35

tribution or display of copyrighted material negatively affects our ability to generate revenue from the legit-
imate 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, NBCUni-
versal 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 partic-
ular, 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 meas-
ures 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intellectual property rights are repealed or weakened or are not adequately enforced, or if the legal system fails to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 initiatives present many risks, and we may not realize the
financial and strategic goals that we had contemplated.
From time to time, we make acquisitions and investments and may pursue other strategic initiatives, includ-
ing, for example, with respect to a wireless strategy. In connection with such acquisitions and strategic
initiatives, we may incur unanticipated expenses, fail to realize anticipated benefits, have difficulty incorporat-
ing an acquired or new line of business, disrupt relationships with current and new employees, customers
and vendors, incur significant debt, or have to delay or not proceed with announced transactions or ini-
tiatives. Additionally, regulatory agencies, such as the FCC or DOJ, may impose restrictions on the operation
of our businesses as a result of our seeking regulatory approvals for any significant acquisitions and strategic
initiatives. 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 col-
lective bargaining agreements as they expire or that we can renew them on favorable terms or without any
work stoppages.
In addition, our cable networks and broadcast television networks have programming rights agreements of
varying scope and duration with various sports organizations to broadcast and produce sporting events,
including certain NFL, NHL, NBA and MLB games. Labor disputes in these and other sports organizations
could have an adverse effect on our businesses.
Comcast 2015 Annual Report on Form 10-K 32