Enom 2013 Annual Report Download - page 32

collection, use, retention, sharing and security of data that we receive from and about our users. The existing privacy-
related laws and regulations
are evolving and subject to potentially differing interpretations. We post privacy policies on all of our owned and operated websites that set forth
our policies and practices related to the collection and use of consumer data. Any failure, or perceived failure, by us to comply with our posted
privacy policies or with industry standards or laws or regulations could result in a loss of consumer confidence in us, or result in actions against
us by governmental entities or others, all of which could potentially cause us to lose consumers and revenue.
In addition, various federal, state and foreign legislative and regulatory bodies may expand current or enact new laws regarding privacy
matters. Recent developments related to “instant personalization” and similar technologies potentially allow us and other publishers access to
even broader and more detailed information about users. These developments have led to greater scrutiny of industry data collection practices by
regulators and privacy advocates. New laws may be enacted, new industry self-regulation
may be promulgated, or existing laws may be amended
or re-interpreted, in a manner that limits our ability to analyze user data. If our access to user data is limited through legislation or any industry
development, we may be unable to provide effective technologies and services to customers and we may lose customers and revenue.
Changes in state, federal or international taxation laws and regulations may adversely affect our business.
Due to the global nature of the Internet, it is possible that, although our services and the Internet transmissions related to them typically
originate in California, Texas, Illinois, Nevada, Washington, Virginia, Ireland and the Netherlands, governments of other states or foreign
countries might attempt to regulate our transmissions or levy sales, income or other taxes relating to our activities. Tax authorities at the
international, federal, state and local levels are currently reviewing the appropriate treatment of companies engaged in Internet commerce. New
or revised international, federal, state or local tax regulations may subject us or our customers to additional sales, income and other taxes. We
cannot predict the effect of current attempts to impose sales, income or other taxes on commerce over the Internet. New or revised taxes and, in
particular, sales taxes, would likely increase the cost of doing business online and decrease the attractiveness of advertising and selling goods
and services over the Internet. New taxes could also create significant increases in internal costs necessary to capture data, and collect and remit
taxes. Any of these events could have an adverse effect on our business and results of operations.
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:
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freedom of expression;
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information security and privacy;
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pricing, fees and taxes;
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content and the distribution of content, including liability for user reliance on such content;
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intellectual property rights, including secondary liability for infringement by others;