Seagate 2014 Annual Report Download - page 32

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TableofContents
significantandexpensivedisputesregardingourIPrightsandthoseofothers,includingclaimsthatwemaybeinfringingpatents,trademarksandotherIPrightsof
third-parties.Weexpectthatwewillbeinvolvedinsimilardisputesinthefuture.
Therecanbenoassurancethat:
•anyofourexistingpatentswillcontinuetobeheldvalid,ifchallenged;
•patentswillbeissuedforanyofourpendingapplications;
•anyclaimsallowedfromexistingorpendingpatentswillhavesufficientscopeorstrengthtoprotectus;or
•ourpatentswillbeissuedintheprimarycountrieswhereourproductsaresoldinordertoprotectourrightsandpotentialcommercialadvantage.
Inaddition,ourcompetitorsmaybeabletodesigntheirproductsaroundourpatentsandotherproprietaryrights.Enforcementofourrightsoftenrequires
litigation.Ifwebringapatentinfringementactionandarenotsuccessful,ourcompetitorswouldbeabletousesimilartechnologytocompetewithus.Moreover,
thedefendantinsuchanactionmaysuccessfullycountersueusforinfringementoftheirpatentsorassertacounterclaimthatourpatentsareinvalidor
unenforceable.
Furthermore,wehavesignificantoperationsandsalesinforeigncountrieswhereintellectualpropertylawsandenforcementpoliciesareoftenlessdeveloped,
lessstringentormoredifficulttoenforcethanintheUnitedStates.
Weareheavilydependentonourproprietarytechnologyandourcompetitorsmaygainaccesstothistechnology.
Wedependheavilyonourproprietarytechnologyandrelyonacombinationofpatent,copyrightandtradesecretlawstoprotectourintellectualpropertyand
expertise.Wealsoattempttoprotectourtradesecretsandotherproprietaryinformationthroughconfidentialityagreementswithourcustomers,suppliersand
employeesandthroughothersecuritymeasures.Despitetheseefforts,wecannotgiveassurancesthatotherswillnotgainaccesstoourtradesecretsorthatwecan
fullyprotectourintellectualproperty.Inaddition,effectivetradesecretprotectionmaybeunavailableorlimitedincertaincountriesinwhichweoperate.Norcan
weguaranteethatourcompetitorswillnotindependentlydevelopcomparabletechnologies.Wecannotrelyonourpatentstoprovideuswithanysignificant
competitiveadvantage.Failuretoprotectourproprietaryrightscouldsignificantlyharmourfinancialcondition.
Wecouldsufferalossofrevenueandincreasedcosts,exposuretosignificantliability,reputationalharm,andotherseriousnegativeconsequencesifwe
sustaincyber-attacksorotherdatasecuritybreachesthatdisruptouroperationsorresultinthedisseminationofproprietaryorconfidentialinformationabout
usorourcustomersorotherthird-parties.
Ouroperationsaredependentuponourabilitytoprotectourcomputerequipmentandtheelectronicdatastoredinourdatabasesfromdamageby,amongother
things,earthquake,fire,naturaldisasters,accidents,powerdisruptions,telecommunicationsfailures,actsofterrorismorwar,employeemisconduct,physicalor
electronicbreak-ins,cyber-attacks,orsimilareventsordisruptions.Wemanageandstorevariousproprietaryinformationandsensitiveorconfidentialdatarelating
toouroperations.Inaddition,ouroutsourcingservicesandcloudcomputingbusinessesroutinelyprocess,store,andtransmitlargeamountsofdataforour
customersandvendors,includingsensitiveandpersonallyidentifiableinformation.Asouroperationsbecomemoreautomatedandincreasinglyinterdependent,our
exposuretotherisksposedbythesetypesofeventswillincrease.Wehavebeen,andwilllikelycontinuetobe,subjecttocomputervirusesorothermalicious
codes,cyber-attacks,orothercomputer-relatedattemptstobreachtheinformationtechnologysystemsweuseforthesepurposes.Wemayalsobesubjectto
informationtechnologysystemfailuresandnetworkdisruptionsduetothesefactors.Experiencedcomputer
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