Garmin 2008 Annual Report Download - page 47

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and trademarks. However, there is no guarantee that our patent applications will become issued patents, or that our
trademark applications will become registered trademarks. Moreover, even if approved, our patents or trademarks
may thereafter be successfully challenged by others or otherwise become invalidated for a variety of reasons. Thus,
any patents or trademarks we currently have or may later acquire may not provide us a significant competitive
advantage.
Third parties may claim that we are infringing their intellectual property rights. Such claims could have a
material adverse effect on our business and financial condition. From time to time we receive letters alleging
infringement of patents, trademarks or other intellectual property rights. Litigation concerning patents or other
intellectual property is costly and time consuming. We may seek licenses from such parties, but they could refuse to
grant us a license or demand commercially unreasonable terms. We might not have sufficient resources to pay for
the licenses. Such infringement claims could also cause us to incur substantial liabilities and to suspend or
permanently cease the use of critical technologies or processes or the production or sale of major products.
Failure to obtain required certifications of our products on a timely basis could harm our business.
We have certain products, especially in our aviation segment, that are subject to governmental and similar
certifications before they can be sold. For example, FAA certification is required for all of our aviation products
that are intended for installation in type certificated aircraft. To the extent required, certification is an expensive and
time-consuming process that requires significant focus and resources. An inability to obtain, or excessive delay in
obtaining, such certifications could have an adverse effect on our ability to introduce new products and, for certain
aviation OEM products, our customers’ ability to sell airplanes. Therefore, such inabilities or delays could
adversely affect our operating results. In addition, we cannot assure you that our certified products will not be
decertified. Any such decertification could have an adverse effect on our operating results.
Our business is subject to economic, political and other risks associated with international sales and
operations.
Our business is subject to risks associated with doing business internationally. We estimate that
approximately 39% of our net sales in the fiscal year ended December 27, 2008 represented products shipped to
international destinations. Accordingly, our business, financial condition and results of operations could be harmed
by a variety of international factors, including:
y changes in foreign currency exchange rates;
y changes in a specific country’s or region’s political or economic conditions, particularly in emerging
markets;
y trade protection measures and import or export licensing requirements;
y potentially negative consequences from changes in tax laws;
y difficulty in managing widespread sales and manufacturing operations;
y acts of war, terrorism, or political unrest; and
y less effective protection of intellectual property.
We may experience unique economic and political risks associated with companies that operate in Taiwan.
Relations between Taiwan and the People’s Republic of China, also referred to as the PRC, and other
factors affecting the political or economic conditions of Taiwan in the future could materially adversely affect our
business, financial condition and results of operations and the market price and the liquidity of our shares. Our