8x8 2015 Annual Report Download - page 26

Inability to protect our proprietary technology would disrupt our business.
We rely, in part, on trademark, copyright, and trade secret law to protect our intellectual property in the United States and abroad. We seek to
protect our software, documentation, and other written materials under trade secret and copyright law, which afford only limited protection. We
also rely, in part, on patent law to protect our intellectual property in the United States and internationally. As of March 31, 2015, we had been
awarded 104 United States patents, of which we expect to expire between 2015 and 2042. We have additional United States and foreign patents
pending. We cannot predict whether such pending patent applications will result in issued patents, and if they do, whether such patents will
effectively protect our intellectual property. The intellectual property rights we obtain may not be sufficient to provide us with a competitive
advantage, and could be challenged, invalidated, infringed or misappropriated. We may not be able to protect our proprietary rights in the United
States or internationally (where effective intellectual property protection may be unavailable or limited), and competitors may independently
develop technologies that are similar or superior to our technology, duplicate our technology or design around any patent of ours.
We attempt to further protect our proprietary technology and content by requiring our employees and consultants to enter into confidentiality and
assignment of inventions agreements and third parties to enter into nondisclosure agreements. These agreements may not effectively prevent
unauthorized use or disclosure of our confidential information, intellectual property or technology and may not provide an adequate remedy in
the event of unauthorized use or disclosure of our confidential information, intellectual property or technology.
Litigation may be necessary in the future to enforce our intellectual property rights, to determine the validity and scope of our proprietary rights
or the rights of others, or to defend against claims of infringement or invalidity. Such litigation could result in substantial costs and diversion of
management time and resources and could have a material adverse effect on our business, financial condition, and operating results. Any
settlement or adverse determination in such litigation would also subject us to significant liability.
We also may be required to protect our proprietary technology and content in an increasing number of jurisdictions, a process that is expensive
and may not be successful, or which we may not pursue in every location. In addition, effective intellectual property protection may not be
available to us in every country, and the laws of some foreign countries may not be as protective of intellectual property rights as those in the
United States. Additional uncertainty may result from changes to intellectual property legislation enacted in the United States and elsewhere, and
from interpretations of intellectual property laws by applicable courts and agencies. Accordingly, despite our efforts, we may be unable to obtain
and maintain the intellectual property rights necessary to provide us with a competitive advantage.
Acquisitions may divert our management's attention, result in dilution to our stockholders and consume resources that are necessary to
sustain our business.
On November 29, 2013, we acquired Voicenet Solutions Limited ("Voicenet"), a UK-
based provider of cloud communications and collaboration
services in the United Kingdom. In fiscal 2012, we completed two acquisitions of businesses. In fiscal 2011, we completed one acquisition and
one investment in another company. If appropriate opportunities present themselves, we may make additional acquisitions or investments or
enter into joint ventures or strategic alliances with other companies. Risks commonly encountered in such transactions include:
4 the difficulty of assimilating the operations and personnel of the combined companies;
4 the risk that we may not be able to integrate the acquired services or technologies with our current services, products, and technologies;
4 the potential disruption of our ongoing business;
4 the diversion of management attention from our existing business;
4 the inability of management to maximize our financial and strategic position through the successful integration of the acquired
businesses;
4 difficulty in maintaining controls, procedures, and policies;
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