MoneyGram 2011 Annual Report Download - page 23

Table of Contents
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 infringe on the rights of others, our business, prospects, financial condition and results of operations could be adversely affected.
The MoneyGram(R) 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 was 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 third party claims alleging that we infringe their intellectual property rights or have misappropriated
other proprietary rights. We may be required to spend resources to defend 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, prospects, financial condition and results of operation.
Failure to attract and retain key employees could have a material adverse impact on our business.
Our success depends to a large extent upon our ability to attract and retain key employees. The loss of one or more members of our executive management
team could harm our business and future development. A failure to attract and retain key personnel could also have a material adverse impact on our
business.
A breach of security of our systems could adversely affect our business.
We obtain, transmit and store confidential customer, employer and agent information in connection with certain of our services. These activities are subject
to laws and regulations in the United States and other jurisdictions. The requirements imposed by these laws and regulations, which often differ materially
among the many jurisdictions, are designed to protect the privacy of personal information and to prevent that information from being inappropriately
disclosed. Any security breaches in our computer networks, databases or facilities could harm our business and reputation, cause inquiries and fines or
penalties from regulatory or governmental authorities, cause a loss of customers and subject us to lawsuits. We rely on a variety of technologies to provide
security for our systems. Advances in computer capabilities, new discoveries in the field of cryptography or other events or developments, including
improper acts by third parties, may result in a compromise or breach of the security measures we use to protect our systems. We may be required to expend
significant capital and other resources to protect against these security breaches or to alleviate problems caused by these breaches. Third−party contractors
also may experience security breaches involving the storage and transmission of our data. If users gain improper access to our or our contractor’s systems or
databases, they may be able to steal, publish, delete or modify confidential customer information. A security breach could expose us to monetary liability,
lead to reputational harm and make our customers less confident in our services, which could have a material adverse effect on our business, financial
condition and results of operations.
Because our business is particularly dependent on the efficient and uninterrupted operation of our computer network systems and data centers,
disruptions to these systems and data centers could adversely affect our business, financial condition and results of operations.
Our ability to provide reliable service largely depends on the efficient and uninterrupted operation of our computer network systems and data centers. Our
business involves the movement of large sums of money and the management of data necessary to do so. The success of our business particularly depends
upon the efficient and error−free handling of transactions and data. We rely on the ability of our employees and our internal systems and processes to
process these transactions in an efficient, uninterrupted and error−free manner.
In the event of a breakdown, catastrophic event (such as fire, natural disaster, power loss, telecommunications failure or physical break−in), security breach,
improper operation, improper action by our employees, agents, customer financial institutions or third party vendors or any other event impacting our
systems or processes or
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