Sharp 2010 Annual Report Download - page 35

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in a case where an accident occurs related to one of Sharp’s
products, report of said incident, based on the Consumer
Product Safety Law and related regulations in Japan, and
disclosure of the accident information based on a system for
public announcements could diminish Sharp’s brand image.
(9) Litigation and Other Legal Proceedings
Sharp conducts business activities around the world, and as
such, there is a risk that Sharp could become involved with
litigation and other legal proceedings in each country. If Sharp
becomes involved in litigation or other legal proceedings, with
the different legal and judicial systems in each country,
depending on the case, Sharp may be ordered to pay a signifi-
cant amount in damages or fines. Sharp is subject to investiga-
tions conducted by the Directorate-General for Competition of
the European Commission, etc., with respect to its TFT LCD
business. In addition, civil lawsuits seeking monetary damages
resulting from alleged anticompetitive behavior have been
filed in North America and Europe against Sharp. Sharp also
received a cease and desist order and a surcharge payment
order from the Japan Fair Trade Commission. However, Sharp
has submitted a complaint to the Commission and the com-
plaint is pending. It is difficult to predict the result of these
proceedings and litigation at this stage. An adverse result
could affect Sharp’s business results and financial position.
(10) Leakage of Personal Data and Other
Information
Sharp retains personal data and other confidential information
concerning its customers, business partners and employees.
Extreme care is taken to protect this information. A company-
wide management system promotes employee education,
internal auditing, and other measures aimed at ensuring com-
pliance with management regulations. If information is leaked,
however, it may reduce confidence in Sharp or result in sub-
stantial costs (associated with leakage prevention measures or
indemnification for damages, for instance), which may affect
Sharp’s business results and financial position.
(11) Other Key Variable Factors
In addition to the aforementioned risks, Sharp’s business
results may be significantly affected by accidents and natural
calamities such as earthquakes or typhoons; human calamities
such as conflicts, insurrections or terrorism; the spread of a
new strain of influenza or other infectious disease; or major
fluctuations in the stock and bond markets.
Risk Factors
Annual Report 2010 33