Support.com 2011 Annual Report Download - page 18
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We license technologies from third parties, which are integrated into our services and software. Our use of commercial technologies licensed on
a non-exclusive basis from third parties poses certain risks. Some of the third-party technologies we license may be provided under “open source”
licenses, which may have terms that require us to make generally available our modifications or derivative works based on such open source code.
Our inability to obtain or integrate third-party technologies with our own technology could delay service development until equivalent compatible
technology can be identified, licensed and integrated. These third-party technologies may not continue to be available to us on commercially reasonable
terms or at all. If our relationship with third parties were to deteriorate, or if such third parties were unable to develop innovative and saleable products,
we could be forced to identify a new developer and our future revenue could suffer. We may fail to successfully integrate any licensed technology into
our services or software, or maintain it through our own development work, which would harm our business and operating results. Third-party
licenses also expose us to increased risks that include:
• Risks of product malfunction after new technology is integrated;
• Risks that we may be unable to obtain or continue to obtain support, maintenance and updates from the technology supplier;
• The diversion of resources from the development of our own proprietary technology; and
• Our inability to generate revenue from new technology sufficient to offset associated acquisition and maintenance costs.
We rely on a combination of laws, such as those applicable to patents, copyrights, trademarks and trade secrets, and contractual restrictions,
such as confidentiality agreements and licenses, to establish and protect our proprietary rights. Our ability to compete and grow our business could
suffer if these rights are not adequately protected. Our proprietary rights may not be adequately protected because:
• Laws and contractual restrictions may not adequately prevent infringement of our proprietary rights and misappropriation of our
technologies or deter others from developing similar technologies; and
• Policing infringement of our patents, trademarks and copyrights, misappropriation of our trade secrets, and unauthorized use of our
products is difficult, expensive and time-consuming, and we may be unable to determine the existence or extent of this infringement or
unauthorized use.
Intellectual property litigation is expensive and time-consuming and could divert management’s attention from our business. The outcome of
any litigation is uncertain and could significantly impact our financial results. Also, the laws of other countries in which we market our products may
offer little or no protection of our proprietary technologies. Reverse engineering, unauthorized copying or other misappropriation of our proprietary
technologies could enable third parties to benefit from our technologies without paying us for them, which would harm our competitive position and
market share.
Our success and ability to compete depend to a significant degree on the protection of our solutions and other proprietary technology. It is
possible that:
• We may not be issued patents we may seek to protect our technology;
• Competitors may independently develop similar technologies or design around any of our patents;
• Patents issued to us may not be broad enough to protect our proprietary rights; and
• Our issued patents could be successfully challenged.
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