Plantronics 2008 Annual Report Download - page 28

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impacted by the need for more stringent employee travel restrictions, limitations in the availability of freight services, governmental
actions limiting the movement of products between various regions, delays in production ramps of new products, and disruptions in
the operations of our manufacturing vendors and component suppliers. Our operating results and financial condition could be
adversely affected by these events.
We have intellectual property rights that could be infringed by others, and we are potentially at risk of infringement of the
intellectual property rights of others.
Our success will depend in part on our ability to protect our copyrights, patents, trademarks, trade dress, trade secrets, and other
intellectual property, including our rights to certain domain names. We rely primarily on a combination of nondisclosure agreements
and other contractual provisions as well as patent, trademark, trade secret, and copyright laws to protect our proprietary rights.
Effective trademark, patent, copyright, and trade secret protection may not be available in every country in which our products and
media properties are distributed to customers. The process of seeking intellectual property protection can be lengthy and expensive.
Patents may not be issued in response to our applications, and any patents that may be issued may be invalidated, circumvented or
challenged by others. If we are required to enforce our intellectual property or other proprietary rights through litigation, the costs and
diversion of management's attention could be substantial. In addition, the rights granted under any intellectual property may not
provide us competitive advantages or be adequate to safeguard and maintain our proprietary rights. Moreover, the laws of certain
countries do not protect our proprietary rights to the same extent as do the laws of the United States. If we do not enforce and protect
our intellectual property rights, it could materially adversely affect our business, financial condition and results of operations.
We are exposed to potential lawsuits alleging defects in our products and/or other claims related to the use of our products.
The use of our products exposes us to the risk of product liability and hearing loss claims. These claims have in the past been, and are
currently being, asserted against us. None of the previously resolved claims have materially affected our business, financial condition
or results of operations, nor do we believe that any of the pending claims will have such an effect. Although we maintain product
liability insurance, the coverage provided under our policies could be unavailable or insufficient to cover the full amount of any such
claim. Therefore, successful product liability or hearing loss claims brought against us could have a material adverse effect upon our
business, financial condition and results of operations.
Our mobile headsets are used with mobile telephones. There has been continuing public controversy over whether the radio frequency
emissions from mobile telephones are harmful to users of mobile phones. We believe that there is no conclusive proof of any health
hazard from the use of mobile telephones but that research in this area is incomplete. We have tested our headsets through independent
laboratories and have found that use of our corded headsets reduces radio frequency emissions at the user's head to virtually zero. Our
Bluetooth and other wireless headsets emit significantly less powerful radio frequency emissions than mobile phones. However, if
research establishes a health hazard from the use of mobile telephones or public controversy grows even in the absence of conclusive
research findings, there could be an adverse impact on the demand for mobile phones, which reduces demand for headset
products. Likewise, should research establish a link between radio frequency emissions and wireless headsets and public concern in
this area grows, demand for our wireless headsets could be reduced creating a material adverse effect on our financial results.
There is also continuing and increasing public controversy over the use of mobile telephones by operators of motor vehicles. While we
believe that our products enhance driver safety by permitting a motor vehicle operator to generally be able to keep both hands free to
operate the vehicle, there is no certainty that this is the case, and we may be subject to claims arising from allegations that use of a
mobile telephone and headset contributed to a motor vehicle accident. We maintain product liability insurance and general liability
insurance that we believe would cover any such claims. However, the coverage provided under our policies could be unavailable or
insufficient to cover the full amount of any such claim. Therefore, successful product liability claims brought against us could have a
material adverse effect upon our business, financial condition and results of operations. See Item 3 of this Form 10-K for a discussion
of our current legal proceedings.
Our business could be materially adversely affected if we lose the benefit of the services of key personnel.
Our success depends to a large extent upon the services of a limited number of executive officers and other key employees. The
unanticipated loss of the services of one or more of our executive officers or key employees could have a material adverse effect upon
our business, financial condition and results of operations.
We also believe that our future success will depend in large part upon our ability to attract and retain additional highly skilled
technical, management, sales and marketing personnel. Competition for such personnel is intense. We may not be successful in
attracting and retaining such personnel, and our failure to do so could have a material adverse effect on our business, operating results
or financial condition.