Oracle 2010 Annual Report Download - page 193
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Our software and hardware systems product sales agreements generally include certain provisions for indemnifying
customers against liabilities if our products infringe a third party’s intellectual property rights. To date, we have not
incurred any material costs as a result of such indemnifications and have not accrued any material liabilities related
to such obligations in our consolidated financial statements. Certain of our product sales agreements also include
provisions indemnifying customers against liabilities in the event we breach confidentiality or service level
requirements. It is not possible to determine the maximum potential amount under these indemnification agreements
due to our limited and infrequent history of prior indemnification claims and the unique facts and circumstances
involved in each particular agreement.
Our software license and hardware systems products agreements also generally include a warranty that our products
will substantially operate as described in the applicable program documentation for a period of one year after
delivery. We also warrant that services we perform will be provided in a manner consistent with industry standards
for a period of 90 days from performance of the service.
We occasionally are required, for various reasons, to enter into financial guarantees with third parties in the ordinary
course of our business including, among others, guarantees related to foreign exchange trades, taxes, import licenses
and letters of credit on behalf of parties with whom we conduct business. Such agreements have not had a material
effect on our results of operations, financial position or cash flows.
Source: ORACLE CORP, 10-K, June 28, 2011 Powered by Morningstar® Document Research℠