Adobe 2008 Annual Report Download - page 29

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As a registered owner of the current version of an Adobe desktop product, customers are eligible to receive Getting
Started support on certain matters. Support for some products and in some countries may vary.
Training
We inform customers about the use of our products through on-line informational services on our Web site
(www.adobe.com) and through a growing series of how to books published by Adobe Press pursuant to a joint publishing
agreement with Peachpit Press. In addition, we develop tests to certify independent trainers who teach Adobe software
classes. We sponsor workshops, work with professional associations and user groups, and conduct regular beta testing
programs.
Investments
We own a limited partnership interest in Adobe Ventures IV L.P. (“Adobe Ventures”) that has invested in early stage
companies with innovative technologies. We also make direct investments in privately-held companies. We enter into these
investments with the intent of securing financial returns as well as for strategic purposes as they often increase our
knowledge of emerging markets and technologies, as well as expand our opportunities to provide Adobe products and
services. Adobe Ventures is managed by Granite Ventures, an independent venture capital firm and sole general partner of
Adobe Ventures.
As previously disclosed, we plan to invest $100.0 million directly in venture capital, of which, approximately $33.5
million has already been invested. We expect the remaining balance will be invested over the next three to five years.
PRODUCT DEVELOPMENT
As the software industry is characterized by rapid technological change, a continuous high level of investment is
required for the enhancement of existing products and services and the development of new products and services. We
develop our software internally as well as acquire products or technology developed by others by purchasing the stock or
assets of the business entity that held ownership rights to the technology. In other instances, we have licensed or purchased
the intellectual property ownership rights of programs developed by others with license or technology transfer agreements
that may obligate us to pay a flat license fee or royalties, typically based on a dollar amount per unit shipped or a percentage
of the revenue generated by those programs.
During fiscal years ended November 28, 2008, November 30, 2007 and December 1, 2006, our research and
development expenses were $662.1 million, $613.2 million and $539.7 million, respectively.
PRODUCT PROTECTION
We regard our software as proprietary and protect it under the laws of copyrights, patents, trademarks and trade secrets.
We protect the source code of our software programs as trade secrets and make source code available to third parties only
under limited circumstances and specific security and confidentiality constraints.
Our products are generally licensed to end users on a “right to use” basis pursuant to a license that restricts the use of the
products to a designated number of devices. We also rely on copyright laws and on “shrink wrap” and electronic licenses that
are not physically signed by the end user. Copyright protection may be unavailable under the laws of certain countries and
the enforceability of “shrink wrap” and electronic licenses has not been conclusively determined in all jurisdictions.
Policing unauthorized use of computer software is difficult and software piracy is a persistent problem for the software
industry. This problem is particularly acute in international markets. We conduct vigorous anti-piracy programs directly and
through certain external software associations. In addition, we have activation technology in certain products to guard against
illegal use and will continue to do so in certain future products.
EMPLOYEES
As of January 16, 2009, we employed 7,335 people. We have not experienced work stoppages and believe our employee
relations are good.