Adobe 2012 Annual Report Download - page 35

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We offer a range of support programs, from fee-based incidents to annual support contracts. Additionally, we provide
extensive self-help and online technical support capabilities via the web which allows customers quick and easy access to possible
solutions. 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.
We provide product support through a combination of outsourced vendors and internal support centers, and through multiple
channels including phone, chat web, and email. These support services are delivered by a global support organization that includes
several Regional and Global Support Centers. These teams are responsible for providing timely, high quality technical expertise
on all our products.
We also offer Developer Support to partners and developer organizations. The Adobe Partner Connection Program focuses
on providing developers with high-quality tools, software development kits, information and services.
Training
We offer a comprehensive portfolio of training options to enable our customer and partner teams in the use of our products.
Our training portfolio includes free on-line informational services on our website (www.adobe.com) and a growing series of how-
to books published by Adobe Press pursuant to a joint publishing agreement with Peachpit Press. We sponsor workshops, work
with professional associations and user groups, and conduct regular beta testing programs. We also provide fee-based education
services to enhance our customers’ use of our solutions, including a wide range of traditional and online training and certifications
delivered by our team of training professionals. Adobe's portfolio of technical training courses covers our Digital Media, Digital
Marketing and other mature products and solutions.
Investments
We 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. We also owned a limited partnership interest in Adobe Ventures
IV L.P. (“Adobe Ventures”) that invested in early stage companies with innovative technologies. During fiscal 2010, Adobe
Ventures was dissolved and all remaining assets were distributed to the partners. Adobe Ventures was managed by Granite Ventures,
an independent venture capital firm and sole general partner of Adobe Ventures.
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 owned 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 2012, 2011 and 2010, our research and development expenses were $742.8 million, $738.1 million and
$680.3 million, respectively.
PRODUCT PROTECTION
We regard our software as proprietary and protect it under the laws of copyrights, patents, trademarks and trade secrets.
We have a number of domestic and foreign patents and pending applications that relate to various aspects of our products and
technology. While we believe our patents have value, no single patent is material to us or to any of our reporting segments. 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 subject to specific security and confidentiality constraints. From time to time, we secure rights to third party
intellectual property as we decide is beneficial to our business.
Our products are generally licensed to end users under one of the following two methods:
(1) We offer many products 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.
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