Metro PCS 2010 Annual Report Download - page 51

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misappropriation of our information or our proprietary rights. Further, the enforcement of our intellectual property
rights may require legal action, which may be costly and may not be successful, even if our rights are
misappropriated or infringed.
We cannot assure you that any patent, trademark or service mark, whether pending or future, or any application
for such will be granted or that any existing patent, trademark or service mark will not be infringed, challenged or
invalidated or that any such registration will adequately protect our brand, products or image. If any of our
intellectual property rights are infringed, challenged or invalidated, the costs associated with the protection and
attempted enforcement of our rights and the potential loss of such rights could have a material adverse effect on our
business, financial condition and operating results.
We and our suppliers may be subject to claims of infringement.
The technologies used in the telecommunications industry are protected by a wide array of patents and other
intellectual property rights. As a result, third parties may assert infringement and misappropriation claims against us
or our suppliers from time to time based on our or their general business operations, the equipment, software or
services we or they use or provide, or the specific operation of our wireless networks or service. Our suppliers may
be subject to infringement or misappropriation claims that if successful could preclude the supplier from supplying
us with the products, software, applications, content and services we require to run our business or offer our
services, require the supplier to change the products, software, applications, content and services they provide to us
in a way which could have a material adverse effect on us, or cause the supplier to increase the charges for their
products, software, applications, content and services to us. We also cannot guarantee that we will be fully
protected against all losses associated with an infringement or misappropriation claim involving our manufacturers,
licensors and suppliers who provide us with the equipment, software, applications, content, and technology that we
use in our business. In addition, our suppliers may refuse to, or may be unable to, pay any damages or honor their
defense and indemnification obligations to us, which may result in us having to bear such losses. We may also have
to buy equipment, software, applications, content and services from other third party suppliers or pay royalties to the
holders of intellectual property rights.
Moreover, we may be subject to claims that products, software, applications, content and services provided by
different vendors which we combine with products, software, applications, content or with services provided by
other vendors or with our own products, software, applications, content and services in order to offer products,
software, applications, content and services to our customers are infringing on or misappropriating the rights of
others, and we may not have any indemnification protection from our vendors for these claims. Further, we have
been, and in the future may be, subject to claims that certain business processes we use, services we provide,
software, applications or content we license, or products we create may infringe on or misappropriate the rights of
third parties, and we may have no indemnification rights from any of our vendors or suppliers. Whether or not an
infringement or misappropriation claim is valid or successful, it could adversely affect our business by diverting
management’s attention, involve us in costly and time-consuming litigation, require us to enter into royalty or
licensing agreements (which may not be available on acceptable terms, or at all), require us to pay royalties for prior
periods, require us or our suppliers to redesign our or their business operations, processes, systems, software,
applications, services or products to avoid claims of infringement or misappropriation, preclude our ability to offer
certain products, software, applications, content, and services at all, or require us to purchase products, software,
applications, content, and services from different vendors or not sell certain products, software, applications,
content, or services. If a claim is found to be valid or if we or our suppliers cannot successfully negotiate a required
royalty or license agreement, we could be forced to pay substantial damages, including potentially treble damages,
and we could be subject to an injunction that could disrupt our business, prevent us from offering some or all of our
products, content, software, applications or services and cause us to incur losses of customers or revenues, any or all
of which could be material and could materially adversely affect our business, financial condition and operating
results.
Substantially all of our CDMA network infrastructure equipment is manufactured or provided by a single
infrastructure vendor.
Substantially all of our broadband PCS and AWS, CDMA network infrastructure equipment is manufactured or
provided by Alcatel Lucent. We have entered into an agreement with Alcatel Lucent to provide us with PCS and
AWS CDMA system products and services, including without limitation, wireless base stations, switches, power,
cable and transmission equipment and services. The agreement does not cover any other non-AWS or non-PCS
spectrum we may acquire in the future, including our spectrum in the 700 MHz band or other technologies, such as