eBay 2008 Annual Report Download - page 49

process of applying to register the Skype name as a trademark worldwide. In the EU, Skype’s application is being
opposed. If these oppositions to Skype’s applications were to be successful, Skype’s ability to protect its brand
against third-party infringers would be compromised. 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 and buildings 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 fixing 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 affect 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 rights granted to the holders of any preferred stock that
may be issued in the future. Some provisions of our certificate of incorporation and bylaws could have the effect of
making it more difficult for a potential acquirer to acquire a majority of our outstanding voting stock. These include
provisions that provide for a classified 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 effect of delaying or preventing a change of control.
ITEM 1B: UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 2: PROPERTIES
We own and lease various properties in the United States and 25 other countries around the world. We use the
properties for executive and administrative offices, data centers, product development offices and customer service
offices. As of December 31, 2008, our owned and leased properties provided us with aggregate square footage of
approximately 1.7 million and 2.3 million, respectively. Our corporate headquarters of approximately 0.2 million
square feet are located in San Jose, California. As of December 31, 2008, the total square footage generally used by
each of our Marketplaces, Payments and Communications segments was approximately 2.1 million, 1.6 million and
0.1 million, respectively.
From time to time we consider various alternatives related to our long-term facilities needs. While we believe
our existing facilities are adequate to meet our immediate needs, it may become necessary to lease or acquire
additional or alternative space to accommodate any future growth.
ITEM 3: LEGAL PROCEEDINGS
In August 2006, Louis Vuitton Malletier and Christian Dior Couture filed two lawsuits in the Paris Court of
Commerce against eBay Inc. and eBay International AG. Among other things, the complaint alleges that we
violated French tort law by negligently broadcasting listings posted by third parties offering counterfeit items
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