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TableofContents
Wemaybeunabletoprotectourintellectualpropertyrights,whichcouldadverselyaffectourbusiness,financialconditionandresultsofoperations.
Werelyonacombinationofpatent,trademark,copyrightandtradesecretlaws,confidentialityproceduresandlicensingarrangementstoprotectourIPrights.
Inthepast,wehavebeeninvolvedin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;
•ourpatentswillbeissuedintheprimarycountrieswhereourproductsaresoldinordertoprotectourrightsandpotentialcommercialadvantage;
•wewillbeabletoprotectourtradesecretsandotherproprietaryinformationthroughconfidentialityagreementswithourcustomers,suppliersand
employeesandthroughothersecuritymeasures;and
•otherswillnotgainaccesstoourtradesecrets.
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maynotbeabletoidentifysuitablestrategicalliances,acquisitions,jointventuresorinvestmentopportunities,tosuccessfullyacquireandintegrate
companiesthatprovidecomplementaryproductsortechnologiesortorealizetheanticipatedbenefitsofsuchtransactions.
Ourgrowthstrategyinvolvespursuingstrategicallianceswith,makingacquisitionsof,formingjointventureswithormakinginvestmentsinothercompanies
thatarecomplementarytoourbusiness.Thereissubstantialcompetitionforattractivestrategicalliance,acquisition,jointventureandinvestmentcandidates.
Accordingly,wemaynotbeabletoidentifysuitablestrategicalliances,acquisition,jointventure,orinvestmentcandidates.Evenifwecanidentifythem,we
cannotassureyouthatwewillbeabletopartnerwith,acquireorinvestinsuitablecandidates,orintegrateacquiredtechnologiesoroperationssuccessfullyintoour
existingtechnologiesandoperations.Moreover,ourabilitytofinancepotentialstrategicalliances,acquisitions,jointventuresorinvestmentswillbelimitedbyour
highdegreeofleverage,thecovenantscontainedintheinstrumentsthatgovernouroutstandingindebtedness,andanyagreementsgoverninganyotherdebtwe
mayincur.
Ifwearesuccessfulinformingstrategicalliancesoracquiring,formingjointventuresormakinginvestmentsinothercompanies,anyofthesetransactions
mayhaveanadverseeffectonourresultsofoperations,particularlywhiletheoperationsofanacquiredbusinessarebeingintegrated.Itisalsolikelythat
integrationofacquiredcompanieswouldleadtothelossofkeyemployeesfromthosecompaniesorthelossofcustomersofthosecompanies.Inaddition,the
integrationofanyacquiredcompanieswould
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