Enom 2010 Annual Report Download - page 40

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Third parties may sue us for intellectual property infringement or misappropriation which, if successful, could require us to pay significant damages or
curtail our offerings.
We cannot be certain that our internally-developed or acquired systems and technologies do not and will not infringe the intellectual property rights of
others. In addition, we license content, software and other intellectual property rights from third parties and may be subject to claims of infringement or
misappropriation if such parties do not possess the necessary intellectual property rights to the products or services they license to us. We have in the past and
may in the future be subject to legal proceedings and claims that we have infringed the patent or other intellectual property rights of a third party. These
claims sometimes involve patent holding companies or other patent owners who have no relevant product revenue and against whom our own patents may
provide little or no deterrence. In addition, third parties may in the future assert intellectual property infringement claims against our customers, which we
have agreed in certain circumstances to indemnify and defend against such claims. Any intellectual property-related infringement or misappropriation claims,
whether or not meritorious, could result in costly litigation and could divert management resources and attention. Moreover, should we be found liable for
infringement or misappropriation, we may be required to enter into licensing agreements, if available on acceptable terms or at all, pay substantial damages or
limit or curtail our systems and technologies. Also, any successful lawsuit against us could subject us to the invalidation of our proprietary rights. Moreover,
we may need to redesign some of our systems and technologies to avoid future infringement liability. Any of the foregoing could prevent us from competing
effectively and increase our costs.
Certain U.S. and foreign laws could subject us to claims or otherwise harm our business.
We are subject to a variety of laws in the U.S. and abroad that may subject us to claims or other remedies. Our failure to comply with applicable laws
may subject us to additional liabilities, which could adversely affect our business, financial condition and results of operations. Laws and regulations that are
particularly relevant to our business address:
privacy;
freedom of expression;
information security;
pricing, fees and taxes;
content and the distribution of content, including liability for user reliance on such content;
intellectual property rights, including secondary liability for infringement by others;
taxation;
domain name registration; and
online advertising and marketing, including email marketing and unsolicited commercial email.
Many applicable laws were adopted prior to the advent of the Internet and do not contemplate or address the unique issues of the Internet. Moreover, the
applicability and scope of the laws that do address the Internet remain uncertain. For example, the laws relating to the liability of providers of online services
are evolving. Claims have been either threatened or filed against us under both U.S. and foreign laws for defamation, copyright infringement, cybersquatting
and trademark infringement. In the future, claims may also be alleged against us based on tort claims and other theories based on our content, products and
services or content generated by our users.
We receive, process and store large amounts of personal data of users on our owned and operated websites and from our freelance content creators. Our
privacy and data security policies govern the
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