Overstock.com 2010 Annual Report Download - page 27

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Table of Contents
we may become subject to injunctions prohibiting us from using software or business processes we currently use or may need to use in the future, or requiring
us to obtain licenses from third parties when such licenses may not be available on financially feasible terms or terms acceptable to us or at all. In addition, we
may not be able to obtain on favorable terms, or at all, licenses or other rights with respect to intellectual property we do not own in providing e-commerce
services to other businesses and individuals under commercial agreements.
If we do not respond to rapid technological changes, our services could become obsolete and we could lose customers.
To remain competitive, we must continue to enhance and improve the functionality and features of our e-commerce businesses. We may face material
delays in introducing new services, products and enhancements. If this happens, our customers may forego the use of our Website and use those of our
competitors. The Internet and the online commerce industry are rapidly changing. If competitors introduce new products and services using new technologies
or if new industry standards and practices emerge, our existing Website and our proprietary technology and systems may become obsolete. Our failure to
respond to technological change or to adequately maintain, upgrade and develop our computer network and the systems used to process customers' orders and
payments could harm our business, prospects, financial condition and results of operations.
We may not be able to obtain trademark protection for our marks, which could impede our efforts to build brand identity.
We have filed trademark applications with the Patent and Trademark Office seeking registration of certain service marks and trademarks. There can be
no assurance that our applications will be successful or that we will be able to secure significant protection for our service marks or trademarks in the United
States or elsewhere as we expand internationally. Our competitors or others could adopt product or service marks similar to our marks, or try to prevent us
from using our marks, thereby impeding our ability to build brand identity and possibly leading to customer confusion. Any claim by another party against us
or customer confusion related to our trademarks, or our failure to obtain trademark registration, could negatively affect our business, prospects, financial
condition and results of operations.
We may not be able to enforce protection of our intellectual property rights under the laws of other countries.
We sell products internationally and consequently we are subject to risks of doing business internationally as related to our intellectual property,
including:
legal uncertainty regarding liability for the listings and other content provided by our users, including uncertainty as a result of less Internet-
friendly legal systems, unique local laws, and lack of clear precedent or applicable law; and
differing intellectual property laws, which may provide insufficient protection for our intellectual property.
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