Google 2010 Annual Report Download - page 19

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Research
We continue to develop new products and services and to enhance our existing ones through research and
product development and the licensing and acquisition of third-party businesses and technology. Our product
development philosophy is to launch innovative products early and often, and then iterate rapidly to make those
products even better. We often post early stage products on Google Labs, at test locations online, or directly on
Google.com. We then use data and user feedback to decide if and how to invest further in those products.
Our research and development expenses were $2.8 billion, $2.8 billion, and $3.8 billion in 2008, 2009, and
2010, respectively, which included stock-based compensation expense of $732 million, $725 million, and $861
million, respectively. We expect to continue to invest in building the employee and systems infrastructures needed
to support the development of new products and services and to improve existing ones.
Intellectual Property
We rely on a combination of intellectual property laws, as well as confidentiality procedures and contractual
provisions, to protect our proprietary technology and our brand. We have registered, and applied for the registration
of, U.S. and international trademarks, service marks, domain names, and copyrights. Additionally, we have filed
U.S. and international patent applications covering certain of our proprietary technology. Over time, we have
assembled a portfolio of patents, trademarks, service marks, copyrights, domain names, and trade secrets
covering our products and services. Our proprietary technology is not dependent on any single patent or copyright
or groups of related patents or copyrights. We believe the duration of our patents is adequate relative to the
expected lives of our products. Although we rigorously protect our proprietary technology, any significant
impairment of, or third-party claim against, our intellectual property rights could harm our business or our ability to
compete.
Sales and Support
We continue to develop and grow our sales and support infrastructure. We have over 85 offices in over 40
countries, the large majority of which include sales people. Our global sales and support infrastructure has
specialized teams across vertical markets. We bring businesses into our advertising network through direct,
remote, and online sales channels, using technology and automation wherever possible to improve our customers'
experience and to grow our business cost-effectively. Our direct advertising and sales teams focus on building
relationships with the largest advertisers and leading internet companies. In 2010, we invested in building a multi-
product sales force, with teams selling campaigns that include search, display (including DoubleClick and
YouTube), and mobile advertising.
We provide customer service to our advertiser base through our global support organization. Our global
support organization concentrates on helping our advertisers and Google Network members get the most out of
their relationship with us.
No individual customer or groups of affiliated customers represented more than 10% of our revenues in
2008, 2009, or 2010.
Government Contracts
No material portion of our business is subject to renegotiation of profits or termination of contracts or
subcontracts at the election of the U.S. government.
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