Vistaprint 2013 Annual Report Download - page 23

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companies from purchasing search results that use the trademark “Vistaprint.” As a result, we may not be able to
prevent our competitors from advertising to, and directly competing for, customers who search for the term
“Vistaprint” on search engines.
We rely heavily on email to market to and communicate with customers, and email communications are
subject to regulatory and reputation risks.
Various private entities attempt to regulate the use of commercial email solicitation by blacklisting
companies that the entities believe do not meet their standards, which results in those companies' emails being
blocked from some Internet domains and addresses. Although we believe that our commercial email solicitations
comply with all applicable laws, from time to time some of our Internet protocol addresses appear on some of these
blacklists. The blacklisting sometimes interferes with our ability to send operational or advertising emails to our
current and potential customers and to send and receive emails to and from our corporate email accounts, which
can interfere with our ability to market our products and services, communicate with our customers, and operate
and manage our websites and corporate email accounts. In addition, as a result of being blacklisted, we have had
disputes with, or concerns raised by, various service providers who perform services for us, including co-location
and hosting services, Internet service providers and electronic mail distribution services.
Further, we have contractual relationships with partners that market our products and services on our
behalf, and some of our marketing partners engage third-party email marketers with which we do not have any
contractual or other relationship. Although we comply with all applicable laws relating to email solicitations and our
contracts with our partners require that they do the same, we do not always have control over the third-party email
marketers that our partners engage. If such a third party were to send emails marketing our products and services
in violation of applicable anti-spam or other laws, then our reputation could be harmed and we could potentially be
liable for their actions.
Our customers create products that incorporate images, illustrations and fonts that we license from third
parties, and any loss of the right to use these licensed materials may substantially harm our business and
results of operations.
Many of the images, illustrations, and fonts incorporated in the design products and services we offer are
the copyrighted property of other parties that we use under license agreements. If one or more of our licenses
covering a significant amount of content were terminated, the amount and variety of content available on our
websites would be significantly reduced, and we may not be able to find, license, and introduce substitute content in
a timely manner, on acceptable terms, or at all.
The loss of key personnel or an inability to attract and retain additional personnel could affect our ability to
successfully grow our business.
We are highly dependent upon the continued service and performance of our senior management team and
key technical, marketing, and production personnel, any of whom may cease their employment with us at any time
with minimal advance notice. We face intense competition for qualified individuals from many other companies in
diverse industries. The loss of one or more of our key employees may significantly delay or prevent the
achievement of our business objectives, and our failure to attract and retain suitably qualified individuals could have
an adverse effect on our ability to implement our business plan.
Our credit facility contains financial and operating restrictions and covenants that may limit our access to
additional credit and could negatively impact our liquidity.
Our credit facility imposes limitations on our ability to, among other things:
• incur additional indebtedness and liens outside of the credit facility;
• make certain investments, payments, or changes in our corporate structure; and
• make capital expenditures or purchase our ordinary shares in excess of certain limits.
In addition, we are required to meet certain financial covenants that are customary with this type of credit
facility, and our inability to comply with these covenants could result in a default under the credit facility, which could