eBay 2003 Annual Report Download - page 67

may require litigation. We must protect our trademarks, patents, and domain names in an increasing
number of jurisdictions, a process that is expensive and may not be successful in every location. We have
licensed in the past, and expect to license in the future, certain of our proprietary rights, such as
trademarks or copyrighted material, to others. These licensees may take actions that diminish the value of
our proprietary rights or harm our reputation.
We are subject to the risks of owning real property.
We own real property including land, buildings and interests in a partnership holding land and
buildings, primarily related to our operations. We have little experience in managing real property.
Ownership of this property subjects us to risks, including:
‚ the possibility of environmental contamination and the costs associated with Ñxing any
environmental problems;
‚ adverse changes in the value of these properties, due to interest rate changes, changes in the
neighborhoods in which the properties are located, or other factors;
‚ the possible need for structural improvements in order to comply with zoning, seismic, disability
act, or other requirements; and
‚ possible disputes with tenants, neighboring owners, or others.
Some anti-takeover provisions may aÅect the price of our common stock.
Our Board of Directors has the authority to issue up to 10,000,000 shares of preferred stock and to
determine the preferences, rights and privileges of those shares without any further vote or action by the
stockholders. The rights of the holders of common stock may be harmed by the rights of the holders of
any preferred stock that may be issued in the future. Some provisions of our certiÑcate of incorporation
and bylaws could have the eÅect of making it more diÇcult for a potential acquiror to acquire a majority
of our outstanding voting stock. These include provisions that provide for a classiÑed board of directors,
prohibit stockholders from taking action by written consent and restrict the ability of stockholders to call
special meetings. We are also subject to provisions of Delaware law that prohibit us from engaging in any
business combination with any interested stockholder for a period of three years from the date the person
became an interested stockholder, unless certain conditions are met. This restriction could have the eÅect
of delaying or preventing a change of control.
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