Google 2010 Annual Report Download - page 25

these laws were adopted prior to the advent of the internet and related technologies and, as a result, do not
contemplate or address the unique issues of the internet and related technologies. The laws that do reference the
internet are being interpreted by the courts, but their applicability and scope remain uncertain. For example, the
laws relating to the liability of providers of online services are currently unsettled both within the U.S. and abroad.
Claims have been threatened and filed under both U.S. and foreign laws for defamation, invasion of privacy and
other tort claims, unlawful activity, copyright and trademark infringement, or other theories based on the nature
and content of the materials searched and the ads posted by our users, our products and services, or content
generated by our users.
In addition, the Digital Millennium Copyright Act has provisions that limit, but do not necessarily eliminate, our
liability for hosting, or for listing or linking to, third-party websites that include materials that infringe copyrights or
other rights, so long as we comply with the statutory requirements of this act. Various U.S. and international laws
restrict the distribution of materials considered harmful to children and impose additional restrictions on the ability
of online services to collect information from minors. In the area of data protection, many states have passed laws
requiring notification to users when there is a security breach for personal data, such as California’s Information
Practices Act. We face similar risks and costs as our products and services are offered in international markets and
may be subject to additional regulations.
Privacy concerns relating to our technology could damage our reputation and deter current and
potential users from using our products and services.
From time to time, concerns have been expressed about whether our products and services compromise the
privacy of users and others. Concerns about our practices with regard to the collection, use, disclosure, or security
of personal information or other privacy related matters, even if unfounded, could damage our reputation and
operating results. While we strive to comply with all applicable data protection laws and regulations, as well as our
own posted privacy policies, any failure or perceived failure to comply may result, and has resulted, in proceedings
or actions against us by government entities or others, or could cause us to lose users and customers, which could
potentially have an adverse effect on our business.
In addition, as nearly all of our products and services are web based, the amount of data we store for our users
on our servers (including personal information) has been increasing. Any systems failure or compromise of our
security that results in the release of our users’ data could seriously limit the adoption of our products and services,
as well as harm our reputation and brand and, therefore, our business. We may also need to expend significant
resources to protect against security breaches. The risk that these types of events could seriously harm our
business is likely to increase as we expand the number of web-based products and services we offer, and operate
in more countries.
Regulatory authorities around the world are considering a number of legislative and regulatory proposals
concerning data protection. In addition, the interpretation and application of consumer and data protection laws in
the U.S., Europe and elsewhere are often uncertain and in flux. It is possible that these laws may be interpreted and
applied in a manner that is inconsistent with our data practices. If so, in addition to the possibility of fines, this could
result in an order requiring that we change our data practices, which could have an adverse effect on our business.
Complying with these various laws could cause us to incur substantial costs or require us to change our business
practices in a manner adverse to our business.
If our security measures are breached, or if our services are subject to attacks that degrade or deny
the ability of users to access our products and services, our products and services may be perceived as
not being secure, users and customers may curtail or stop using our products and services, and we may
incur significant legal and financial exposure.
Our products and services involve the storage and transmission of users’ and customers’ proprietary
information, and security breaches could expose us to a risk of loss of this information, litigation, and potential
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