TripAdvisor 2015 Annual Report Download - page 22

Forexample,thereis,andwilllikelycontinuetobe,anincreasingnumberoflawsandregulationspertainingtotheInternetandonlinecommercethatmay
relatetoliabilityforinformationretrievedfromortransmittedovertheInternet,onlineeditorialanduser-generatedcontent,userprivacy,datasecurity,behavioral
targetingandonlineadvertising,taxation,liabilityforthird-partyactivitiesandthequalityofproductsandservices.Ourcurrentbusinesspartnerarrangementswith
thirdparties,includingFacebook,couldbenegativelyimpactedtotheextentthatmorerestrictiveprivacylawsorregulationsareenacted,particularlyintheUnited
StatesorEuropeanUnion.Inaddition,enforcementauthoritiesintheUnitedStatescontinuetorelyontheirauthorityunderexistingconsumerprotectionlawsto
takeactionagainstcompaniesrelatingtodataprivacyandsecuritypractices.Thegrowthanddevelopmentofonlinecommercemaypromptcallsformorestringent
consumerprotectionlawsandmoreaggressiveenforcementefforts,whichmayimposeadditionalburdensononlinebusinessesgenerally.
Wealsohavebeensubject,andwewilllikelybesubjectinthefuture,toinquiriesfromtimetotimefromregulatorybodiesconcerningcompliancewith
consumerprotection,competition,taxandtravelindustry-specificlawsandregulations.Thefailureofourbusinessestocomplywiththeselawsandregulations
couldresultinfinesand/orproceedingsagainstusbygovernmentalagenciesand/orconsumers,whichifmaterial,couldadverselyaffectourbusiness,financial
conditionandresultsofoperations.Further,ifsuchlawsandregulationsarenotenforcedequallyagainstothercompetitorsinaparticularmarket,ourcompliance
withsuchlawsmayputusacompetitivedisadvantagevis-à-viscompetitorswhodonotcomplywithsuchrequirements.
Thepromulgationofnewlaws,rulesandregulations,orthenewinterpretationofexistinglaws,rulesandregulations,ineachcasethatrestrictorotherwise
unfavorablyimpacttheabilityormannerinwhichweprovideservicescouldrequireustochangecertainaspectsofourbusiness,operationsandcommercial
relationshipstoensurecompliance,whichcoulddecreasedemandforservices,reducerevenues,increasecostsand/orsubjectthecompanytoadditionalliabilities.
We cannot be sure that our intellectual property is protected from copying or use by others, including potential competitors.
Ourwebsitesrelyoncontent,brandsandtechnology,muchofwhichisproprietary.Weprotectourproprietarycontent,brandsandtechnologybyrelyingon
acombinationoftrademarks,copyrights,tradesecrets,patentsandconfidentialityagreements.Inconnectionwithourlicenseagreementswiththirdparties,we
seektocontrolaccessto,andtheuseanddistributionof,proprietarytechnology,contentandbrands.Evenwiththeseprecautions,itmaybepossibleforanother
partytocopyorotherwiseobtainanduseourproprietarytechnology,contentorbrandswithoutauthorizationortodevelopsimilartechnology,contentorbrands
independently.Effectiveintellectualpropertyprotectionmaynotbeavailableineveryjurisdictioninwhichourservicesaremadeavailable,andpolicing
unauthorizeduseofourintellectualpropertyisdifficultandexpensive.Therefore,incertainjurisdictions,wemaybeunabletoprotectourintellectualproperty
adequatelyagainstunauthorizedthird-partycopyingoruse,whichcouldadverselyaffectourbusinessorabilitytocompete.Wecannotbesurethatthestepswe
havetakenwillpreventmisappropriationorinfringementourintellectualproperty.Anymisappropriationorviolationofourrightscouldhaveamaterialadverse
effectonourbusiness.Furthermore,wemayneedtogotocourtorothertribunalsoradministrativebodiesinordertoenforceourintellectualpropertyrights,to
protectourtradesecretsortodeterminethevalidityandscopeoftheproprietaryrightsofothers.Theseproceedingsmightresultinsubstantialcostsanddiversion
ofresourcesandmanagementattention.Ourfailuretoprotectourintellectualpropertyinacost-effectiveoreffectivemannercouldhaveamaterialadverseeffect
onourbusinessandabilitytoprotectourtechnology,contentandbrands.
Wecurrentlylicensefromthirdpartiesandincorporatethetechnologiesandcontentintoourwebsites.Aswecontinuetointroducenewservicesthat
incorporatenewtechnologiesandcontent,wemayberequiredtolicenseadditionaltechnology,orcontent.Wecannotbesurethatsuchtechnologyorcontentwill
beavailableoncommerciallyreasonableterms,ifatall.
System interruption and the lack of redundancy in some of our internal information systems may harm our business.
Werelyoncomputersystemstodelivercontentandservices.Wehaveexperiencedandmayinthefutureexperiencesysteminterruptionsthatmakesome
orallofthesesystemsunavailableorpreventusfromefficientlyprovidingcontentandservicestousersandthirdparties.Significantinterruptions,outagesor
delaysininternalsystems,orsystemsofthirdpartiesthatwerelyupon,ordeteriorationintheperformanceofanysuchsystems,wouldimpairourabilityto
processtransactionsordisplaycontentanddecreasethequalityoftheservicesweoffertotravelersandusers.Theseinterruptionscouldincludesecurityintrusions
andattacksonoursystemsforfraudorserviceinterruption(called“denialofservice”or“bot”attacks).Ifweweretoexperiencefrequentorpersistentsystem
failures,ourbusiness,reputation,andbrandcouldbeharmed.
Wedonothaveacompletelyformalizedorcomprehensivedisasterrecoveryplanineverygeographicregioninwhichweconductbusinessandourbackup
systemsanddisasterrecovery,businesscontinuity/orcontingencyplansforcertaincriticalaspectsofouroperationsorbusinessprocessesmaynotbesufficient.
Fire,flood,powerloss,telecommunicationsfailure,break-ins,earthquakes,actsofwarorterrorism,actsofGod,computerviruses,electronicintrusionattempts
frombothexternalandinternalsourcesandsimilareventsordisruptionsmaydamageorimpactorinterruptcomputerorcommunicationssystemsorbusiness
processesatanytime.Althoughwehaveputmeasuresinplacetoprotectcertainportionsofourfacilitiesandassets,anyofthese

19