MoneyGram 2009 Annual Report Download - page 19

Table of Contents
Failure to attract and retain key employees could have a material adverse effect on our business, financial condition and results of
operations.
Our success depends to a large extent upon our ability to attract and retain key employees. We are in a period of significant change in our
executive management team, including vacancies of key positions, and we may face uncertainties in implementing our business strategies
and goals as a result. A failure to attract and retain key personnel could have a material adverse effect on our business, financial
condition, results of operations and cash flows.
If we fail to successfully develop and timely introduce new and enhanced products and services or we make substantial investments in
an unsuccessful new product, service or infrastructure change, our business, prospects, financial condition and results of operations
could be adversely affected.
Our future growth will depend, in part, on our ability to continue to develop and successfully introduce new and enhanced methods of
providing money transfer, money order, official check, bill payment and related services that keep pace with competitive introductions,
technological changes and the demands and preferences of our agents, financial institution customers and consumers. Many of our
competitors offer electronic payment mechanisms, including Internet-based and cellular phone payment services, that could be
substituted for traditional forms of payment, such as the money order, bill payment and money transfer services that we offer. If these
alternative payment mechanisms become widely substituted for our products and services, and we do not develop and offer similar
alternative payment mechanisms successfully and on a timely basis, our business and prospects could be adversely affected. Additionally,
we may make future investments or enter into strategic alliances to develop new technologies and services or to implement infrastructure
change to further our strategic objectives, strengthen our existing businesses and remain competitive. Such investments and strategic
alliances are inherently risky and we cannot guarantee that such investments or strategic alliances will be successful and if not successful,
will not have a material adverse effect on our business, financial condition and results of operations.
If we are unable to adequately protect our brand and the intellectual property rights related to our existing and any new or enhanced
products and services, or if we are unable to avoid infringing on the rights of others, our business, prospects, financial condition and
results of operations could be adversely affected.
The MoneyGram® brand is important to our business. We utilize trademark registrations in various countries and other tools to protect
our brand. Our business would be harmed if we were unable to adequately protect our brand, and the value of our brand were to decrease
as a result.
We rely on a combination of patent, trademark and copyright laws, trade secret protection and confidentiality and license agreements to
protect the intellectual property rights related to our products and services. We also investigate the intellectual property rights of third
parties to prevent our infringement of those rights. We may be subject to claims of third parties that we infringe their intellectual property
rights or have misappropriated other proprietary rights. We may be required to spend resources to defend any such claims or to protect
and police our own rights. Some of our intellectual property rights may not be protected by intellectual property laws, particularly in
foreign jurisdictions. The loss of our intellectual property protection, the inability to secure or enforce intellectual property protection or
to successfully defend against claims of intellectual property infringement could harm our business and prospects.
We face intense competition, and if we are unable to continue to compete effectively, our business, financial condition and results of
operations would be adversely affected.
The markets in which we compete are highly competitive, and we face a variety of competitors across our businesses, in particular our
largest competitor, The Western Union Company. In addition, new competitors or alliances among established companies may emerge.
With respect to our money transfer, urgent bill payment and money order businesses, our primary competition comes from our largest
competitor. We cannot anticipate every effect that actions taken by our competitors will have on our business, or the money transfer and
bill payment industry in general.
Money transfer, money order and bill payment services within our Global Funds Transfer segment compete in a concentrated industry,
with a small number of large competitors and a large number of small, niche competitors. We also compete with banks and niche
person-to-person money transfer service providers. The electronic bill payment services within our Global Funds Transfer segment
compete in a highly fragmented consumer-to-business payment
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