Western Union 2009 Annual Report Download - page 43

done in anticipation that they will result in increased transaction volumes. In addition, failure to compete on
service differentiation could significantly affect our future growth potential and results of operations.
As noted above, many of our agents outside the United States are national post offices. These entities are
usually governmental organizations that may enjoy special privileges or protections that could allow them to
simultaneously develop their own money transfer businesses. International postal organizations could agree to
establish a money transfer network among themselves. Due to the size of these organizations and the number
of locations they have, any such network could represent significant competition to us. Because these entities
are governmental organizations, they may be able to—or be required to—offer their money transfer services to
the public at, near or below their cost of providing such services.
Our ability to remain competitive depends in part on our ability to protect our brands and our other
intellectual property rights and to defend ourselves against potential patent infringement claims.
The Western Union brand, which is protected by trademark registrations in many countries, is material to
our company. The loss of the Western Union trademark or a diminution in the perceived quality associated
with the name would harm our business. Similar to the Western Union trademark, the Vigo, Orlandi Valuta,
Speedpay, Paymap, Equity Accelerator, Just in Time EFT, Pago Fácil, Western Union Quick Collect, Quick
Pay, Quick Cash, Convenience Pay, Custom House and other trademarks and service marks are also important
to our company and a loss of the service mark or trademarks or a diminution in the perceived quality
associated with these names could harm our business.
Our intellectual property rights are an important element in the value of our business. Our failure to take
appropriate actions against those who infringe upon our intellectual property could adversely affect our
business, financial position and results of operations.
The laws of certain foreign countries in which we do business either do not recognize intellectual
property rights or do not protect them to the same extent as do the laws of the United States. Adverse
determinations in judicial or administrative proceedings in the United States or in foreign countries could
impair our ability to sell our services or license or protect our intellectual property, which could adversely
affect our business, financial position and results of operations.
We have been, are and in the future may be, subject to claims alleging that our technology or business
methods infringe patents owned by others, both inside and outside the United States. Unfavorable resolution of
these claims could require us to change how we deliver a service, result in significant financial consequences,
or both, which could adversely affect our business, financial position and results of operations.
We receive services from third-party vendors that would be difficult to replace if those vendors ceased
providing such services which could cause temporary disruption to our business.
Some services relating to our business, such as software application support, the development, hosting
and maintenance of our operating systems, check clearing, and processing of returned checks are outsourced to
third-party vendors, which would be difficult to replace quickly. If our third-party vendors were unwilling or
unable to provide us with these services in the future, our business and operations could be adversely affected.
Breaches of our information security policies or safeguards could adversely affect our ability to operate and
could damage our reputation, business, financial position and results of operations.
We collect, transfer and retain consumer, employee and agent data as part of our business. These
activities are subject to laws and regulations in the United States and other jurisdictions. The requirements
imposed by these laws and regulations, which often differ materially among the many jurisdictions, are
designed to protect the privacy of personal information and to prevent that information from being
inappropriately disclosed. We have developed and maintain technical and operational safeguards designed to
comply with applicable legal requirements. However, despite those safeguards, it is possible that hackers,
employees acting contrary to our policies or others could improperly access our systems or improperly obtain
or disclose data about our consumers, agents and/or employees. Further, because some data is collected and
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