Go Daddy 2015 Annual Report Download - page 37

Table of Contents
As of December 31, 2015 , we had 164 issued patents in the United States covering various aspects of our product offerings. Additionally, as of
December 31, 2015 , we had 211 pending U.S. patent applications and intend to file additional patent applications in the future. The process of obtaining patent
protection is expensive and time-consuming, and we may not be able to prosecute all necessary or desirable patent applications at a reasonable cost or in a timely
manner. We may choose not to seek patent protection for certain innovations and may choose not to pursue patent protection in certain jurisdictions, and under the
laws of certain jurisdictions, patents or others intellectual property may be unavailable or limited in scope. Furthermore, it is possible that our patent applications
may not issue as granted patents, that the scope of our issued patents will be insufficient or not have the coverage originally sought, that our issued patents will not
provide us with any competitive advantages, and that our patents and other intellectual property rights may be challenged by others or invalidated through
administrative processes or litigation. In addition, issuance of a patent does not assure that we have an absolute right to practice the patented invention, or that we
have the right to exclude others from practicing the claimed invention. As a result, we may not be able to obtain adequate patent protection or to enforce our issued
patents effectively.
In addition to patented technology, we rely on our unpatented proprietary technology and confidential proprietary information, including trade secrets and
know-how. Despite our efforts to protect the proprietary and confidential nature of such technology and information, unauthorized parties may attempt to
misappropriate, reverse engineer or otherwise obtain and use them. The contractual provisions in confidentiality agreements and other agreements we generally
enter into with employees, consultants, partners, vendors and customers may not prevent unauthorized use or disclosure of our proprietary technology or
intellectual property rights and may not provide an adequate remedy in the event of unauthorized use or disclosure of our proprietary technology or intellectual
property rights. Moreover, policing unauthorized use of our technologies, products and intellectual property is difficult, expensive and time-consuming,
particularly in foreign countries where the laws may not be as protective of intellectual property rights as those in the United States and where mechanisms for
enforcement of intellectual property rights may be weak. To the extent we expand our international activities, our exposure to unauthorized copying and use of our
products and proprietary information may increase. We may be unable to determine the extent of any unauthorized use or infringement of our products,
technologies or intellectual property rights.
As of December 31, 2015 , we had 388 registered trademarks in 54 countries, including the GoDaddy logo and mark in all international markets in which we
operate or intend to operate. We have also registered, or applied to register, the trademarks associated with several of our leading brands in the United States and in
certain other countries. Competitors and others may have adopted, and in the future may adopt, tag lines or service or product names similar to ours, which could
impede our ability to build our brands’ identities and possibly lead to confusion. In addition, there could be potential trade name or trademark infringement claims
brought by owners of other registered and common law trademarks or trademarks incorporating variations of the terms or designs of one or more of our trademarks
and opposition filings made when we apply to register our trademarks.
From time to time, legal action by us may be necessary to enforce our patents, trademarks and other intellectual property rights, to protect our trade secrets, to
determine the validity and scope of the intellectual property rights of others or to defend against claims of infringement or invalidity. Such litigation could result in
substantial costs and diversion of resources, distract management and technical personnel and negatively affect our business, operating results and financial
condition. If we are unable to protect our intellectual property rights, we may find ourselves at a competitive disadvantage to others who need not incur the
additional expense, time and effort required to create the innovative products that have enabled us to be successful to date. Any inability on our part to protect
adequately our intellectual property may have a material adverse effect on our business, operating results and financial condition.
Assertions by third parties of infringement or other violations by us of their intellectual property rights, or other lawsuits brought against us, could result in
significant costs and substantially harm our business and operating results.
In recent years, there has been significant litigation in the United States and abroad involving patents and other intellectual property rights. Companies
providing web-based and cloud-based products are increasingly bringing, and becoming subject to, suits alleging infringement of proprietary rights, particularly
patent rights. The possibility of intellectual property infringement claims also may increase to the extent we face increasing competition and become increasingly
visible as a publicly-traded company. Any claims we assert against perceived infringers could provoke these parties to assert counterclaims against us alleging that
we infringe their intellectual property rights. In addition, our exposure to risks associated with the use of intellectual property may increase as a result of
acquisitions we make or our use of software licensed from or hosted by third parties, as we have less visibility into the development process with respect to such
technology or the care taken to safeguard against infringement risks. Third parties may make infringement and similar or related claims after we have acquired or
licensed
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