Seagate 2014 Annual Report Download - page 31
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bedevotedtoourday-to-dayoperationsortotheexecutionofourstrategy.Growthbystrategicalliance,acquisition,jointventureorinvestmentinvolvesaneven
higherdegreeofrisktotheextentwecombinenewproductofferingsandenternewmarketsinwhichwehavelimitedexperience,andnoassurancecanbegiven
thatacquisitionsofentitieswithneworalternativebusinessmodelswillbesuccessfullyintegratedorachievetheirstatedobjectives.Therecanbenoassurancethat
wewillrealizetheanticipatedbenefitsofanystrategicalliance,acquisition,jointventureorinvestmentthatwemakeor,ifwedo,howlongitwilltaketoachieve
suchbenefits.
Furthermore,theexpansionofourbusinessinvolvestheriskthatwemightnotmanageourgrowtheffectively,thatwewouldincuradditionaldebttofinance
theseacquisitionsorinvestments,thatwemayhaveimpairmentofgoodwilloracquiredintangibleassetsassociatedwiththeseacquisitionsandthatwewould
incursubstantialchargesrelatingtothewrite-offofin-processresearchanddevelopment,similartothatwhichweincurredinconnectionwithseveralofourprior
acquisitions.Eachoftheseitemscouldhaveamaterialadverseeffectonourfinancialconditionandresultsofoperations.
Inaddition,wecouldissueadditionalordinarysharesinconnectionwithfuturestrategicalliances,acquisitions,jointventuresorinvestments.Issuingsharesin
connectionwithsuchtransactionswouldhavetheeffectofdilutingyourownershippercentageoftheordinarysharesandcouldcausethepriceofourordinary
sharestodecline.
Weareattimessubjecttointellectualpropertylegalproceedingsandclaimswhichcouldcauseustoincursignificantadditionalcostsorpreventusfrom
sellingourproducts,andwhichcouldadverselyaffectourresultsofoperationsandfinancialcondition.
Wearesubjectfromtime-to-timetolegalproceedingsandclaims,includingclaimsofallegedinfringementofthepatents,trademarksandotherintellectual
propertyrightsofthirdpartiesbyus,orourcustomers,inconnectionwiththeiruseofourproducts.Intellectualpropertylitigationcanbeexpensiveandtime-
consuming,regardlessofthemeritsofanyclaim,andcoulddivertourmanagement'sattentionfromoperatingourbusiness.Inaddition,intellectualproperty
lawsuitsaresubjecttoinherentuncertaintiesduetothecomplexityofthetechnicalissuesinvolved,whichmaycauseactualresultstodiffermateriallyfromour
expectations.Patentlitigationhasincreasedduetothecurrentuncertaintyofthelawandtheincreasingcompetitionandoverlapofproductfunctionalityinthe
field.Someoftheactionsthatwefacefromtime-to-timeseekinjunctionsagainstthesaleofourproductsand/orsubstantialmonetarydamages,whichifgrantedor
awarded,couldmateriallyharmourbusiness,financialconditionandoperatingresults.
Wecannotbecertainthatourproductsdonotandwillnotinfringeissuedpatentsorotherintellectualpropertyrightsofothers.Wemaynotbeawareof
currentlyfiledpatentapplicationsthatrelatetoourproductsortechnology.Ifpatentsarelaterissuedontheseapplications,wemaybeliableforinfringement.If
ourproductswerefoundtoinfringetheintellectualpropertyrightsofothers,wecouldberequiredtopaysubstantialdamages,ceasethemanufacture,useandsale
ofinfringingproductsinoneormoregeographiclocations,expendsignificantresourcestodevelopnon-infringingtechnology,discontinuetheuseofspecific
processesorobtainlicensestothetechnologyinfringed.Wemightnotbeabletoobtainthenecessarylicensesonacceptableterms,oratall,orbeableto
reengineerourproductssuccessfullytoavoidinfringement.Anyoftheforegoingcouldcauseustoincursignificantcostsandpreventusfromsellingourproducts,
whichcouldadverselyaffectourresultsofoperationsandfinancialcondition.See"Item8.FinancialStatementsandSupplementaryData-Note14.Legal,
EnvironmentalandOtherContingencies"containedinthisreportforadescriptionofpendingintellectualpropertyproceedings.
Wemaybeunabletoprotectourintellectualpropertyrights,whichcouldadverselyaffectourbusiness,financialconditionandresultsofoperations.
Werelyonacombinationofpatent,trademark,copyrightandtradesecretlaws,confidentialityproceduresandlicensingarrangementstoprotectourIPrights.
Inthepast,wehavebeeninvolvedin
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