Time Warner Cable 2007 Annual Report Download - page 44

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from further use of the intellectual property in question. In addition, certain agreements entered into may require the
Company to indemnify the other party for certain third-party intellectual property infringement claims, which could
increase the Company’s damages and its costs of defending against such claims. Even if the claims are without
merit, defending against the claims can be time consuming and costly.
As part of the TWE Restructuring, Time Warner agreed to indemnify the cable businesses of TWE from and
against any and all liabilities relating to, arising out of or resulting from specified litigation matters brought against
the TWE non-cable businesses. Although Time Warner has agreed to indemnify the cable businesses of TWE
against such liabilities, TWE remains a named party in certain litigation matters.
The costs and other effects of pending or future litigation, governmental investigations, legal and
administrative cases and proceedings (whether civil or criminal), settlements, judgments and investigations,
claims and changes in those matters (including those matters described above), and developments or assertions
by or against the Company relating to intellectual property rights and intellectual property licenses, could have a
material adverse effect on the Company’s business, financial condition and operating results.
Item 4. Submission of Matters to a Vote of Security Holders.
Not applicable.
39