Google 2013 Annual Report Download - page 11

5GOOGLE INC.
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ITEM1.Business
Motorola
The Motorola Mobile segment is focused on mobile wireless devices and related products and services and generates revenues
primarily by selling hardware products. In January 2014, we entered into an agreement with Lenovo providing for the disposition
of our Motorola Mobile segment.
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 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$5.2billion,$6.8billion,and$8.0billionin2011,2012,and2013,respectively,
whichincludedstock-basedcompensationexpenseof$1.1billion,$1.3billion,and$1.7billion,respectively.Weexpecttocontinue
to invest in building the employee and systems infrastructure 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condentiality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led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signicant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ocesinover50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-eectively.Ourdirect
advertising and sales teams focus on building relationships with the largest advertisers and leading internet companies. We have
built a multi-product sales force, with teams selling campaigns that include search and display (including video) that appear on
multiple devices used by consumers.
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aliatedcustomersrepresentedmorethan10%ofourrevenuesin2011,2012,or2013.
Government Contracts
Nomaterialportionofourbusinessissubjecttorenegotiationofprotsorterminationofcontractsorsubcontractsattheelection
of the U.S. government.
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