Seagate 2003 Annual Report Download - page 53

Table of Contents
advantage or will not be challenged by third parties. Moreover, our competitors may already have applied for patents that, once issued, will
prevail over our patent rights or otherwise limit our ability to sell our products in the United States or abroad. Our competitors also may attempt
to design around our patents or copy or otherwise obtain and use our proprietary technology. With respect to our pending patent applications,
we may not be successful in securing patents for these claims. Our failure to secure these patents may limit our ability to protect the intellectual
property rights that these applications were intended to cover.
Disclosure of our Proprietary Technology—Confidentiality and non-disclosure agreements may not adequately protect our
proprietary technology or trade secrets.
We have entered into confidentiality agreements with our employees and non-disclosure agreements with customers, suppliers and
potential strategic partners, among others. If any party to these agreements were to violate their agreement with us and disclose our proprietary
technology to a third party, we may be unable to prevent the third party from using this information. Because a significant portion of our
proprietary technology consists of specialized knowledge and technical expertise developed by our employees, we have a program in place
designed to ensure that our employees communicate any developments or discoveries they make to other employees. However, employees may
choose to leave our company before transferring their knowledge and expertise to our other employees. Violations by others of our
confidentiality or non-disclosure agreements and the loss of employees who have specialized knowledge and expertise could harm our
competitive position and cause our sales and operating results to decline. Our trade secrets may otherwise become known or independently
developed by others, and trade secret laws provide no remedy against independent development or discovery.
Service Marks and Trademarks—Our failure to obtain trademark registrations or service marks, or challenges to those marks, could
impede our marketing efforts.
We have registered and applied for some service marks and trademarks, and will continue to evaluate the registration of additional service
marks and trademarks, as appropriate. We cannot guarantee the approval of any of our pending applications by the applicable governmental
authorities. Moreover, even if the applications are approved, third parties may seek to oppose or otherwise challenge these registrations. A
failure to obtain trademark registrations in the United States and in other countries could limit our ability to use our trademarks and impede our
marketing efforts in those jurisdictions.
Environmental Matters—We could incur substantial costs, including cleanup costs, fines and civil or criminal sanctions, as a result
of violations of or liabilities under environmental laws.
Our operations inside and outside the United States are subject to laws and regulations relating to the protection of the environment,
including those governing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes,
and the cleanup of contaminated sites. In addition to the U.S. federal, state and local laws to which our domestic operations are subject, our
extensive international manufacturing operations subject us to environmental regulations imposed by foreign governments.
Although our policy is to apply strict standards for environmental protection at our sites inside and outside the United States, we could
incur substantial costs, including cleanup costs, fines and civil or criminal sanctions, third-party property damage or personal injury claims if
we were to violate or become liable under environmental laws or become non-compliant with environmental permits required at our facilities.
Contaminants have been detected at some of our present and former sites, principally in connection with historical operations. In addition, we
have been named as a potentially responsible party at several superfund sites. While we are not currently aware of any contaminated or
superfund sites as to which material outstanding claims or obligations exist, the discovery of additional contaminants or the imposition of
additional cleanup obligations at these or other sites could result in significant liability. In addition, the ultimate costs under environmental laws
and the timing of these costs are difficult to predict. Liability under some environmental laws relating to contaminated sites can be imposed
retroactively and on a joint and several basis. In other words, one liable party could be held liable for all costs at a site. Potentially significant
expenditures could be required in order to comply with environmental laws that may be adopted or imposed in the future.
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