Juno 2012 Annual Report Download - page 29

Table of Contents
each month, a significant number of email addresses for members of our online nostalgia and online loyalty marketing services become invalid. This
disrupts our ability to email these members and also prevents our online nostalgia members from being able to contact these members, which is one of
the reasons why members use our online nostalgia services.
Our FTD segment generates a significant portion of its consumer orders from the emails we send to customers who have previously ordered
products from us. We also engage in a number of third-party email marketing campaigns in which such third parties include our marketing offers in the
emails they send.
An increase in the number of members or customers to whom we are not able to send emails, or who elect to not receive, or are unable to receive,
our emails could adversely affect our business, financial condition, results of operations, and cash flows. From time to time, Internet service providers
block bulk email transmissions or otherwise experience technical difficulties that result in our inability to successfully deliver emails to our members or
customers. Third parties may also block, impose restrictions on, or start to charge for, the delivery of emails through their email systems. Due to the
importance of email to our businesses, any disruption or restriction on the distribution of emails or increase in the associated costs could materially and
adversely affect our revenues and profitability.

Our trade names, trademarks, service marks, patents, copyrights, domain names, trade secrets, and other intellectual property are important to the
success of our businesses. In particular, we view our primary trademarks as critical to our success. We principally rely upon patent, trademark,
copyright, trade secret, and domain name laws in the U.S. and similar laws in other countries, as well as licenses and other agreements with our
employees, members, consumers, suppliers, and other parties, to establish and maintain our intellectual property and proprietary rights in the
technology, products, services, and content used in our operations. These laws and agreements may not guarantee that our proprietary rights will be
protected and our intellectual property and proprietary rights could be challenged or invalidated. We also license some of our intellectual property rights,
including the Mercury Man logo, to third parties. The steps we and such third parties have taken to protect our intellectual property and proprietary
rights may not be adequate, and other third parties may infringe or misappropriate our intellectual property and proprietary rights. The protection of our
intellectual property and proprietary rights may require the expenditure of significant financial and internal resources. We cannot assure you that we
have taken adequate steps to prevent infringement or misappropriation of our intellectual property and proprietary rights. Our failure to adequately
protect our intellectual property and proprietary rights could adversely affect our brands and could harm our business.


Acquisitions of businesses, services or technologies may provide us with an opportunity to diversify the products and services we offer, leverage
our assets and core competencies, complement our existing businesses, or expand our geographic reach. However, acquiring companies is a difficult
process with many factors outside of our control. In addition, the Credit Agreement imposes certain restrictions on our ability to complete acquisitions
and there is no assurance that we will be successful in completing additional acquisitions, if any.
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