TiVo 2015 Annual Report Download - page 30

Table of Contents
Business interruptions could adversely affect our future operating results.
The provision of certain of our products and services depends on the continuing operation of communications and transmission systems and
mechanisms, including satellite, cable, wire, internet, over the air broadcast communications and transmission systems and mechanisms. These
communication and transmission systems and mechanisms are subject to significant risks and any damage to or failure of these systems and mechanisms
could result in an interruption of the provision of our products and services.
Several of our major business operations are subject to interruption by earthquake, fire, power shortages, terrorist attacks and other hostile acts,
and other events beyond our control. The majority of our research and development activities, our corporate headquarters, our principal information
technology systems, and other critical business operations are located near major seismic faults. Our operating results and financial condition could be
materially harmed in the event of a major earthquake or other natural or man
- made disaster that disrupts our business. The communications and
transmission systems and mechanisms that we depend on are not fully redundant, and our disaster recovery planning cannot account for all eventualities.
Our systems and networks are subject to security and stability risks that could harm our business and reputation and expose us to litigation or liability.
Online business activities depend on the ability to store and transmit confidential information and licensed IP securely on our systems, third party
systems and over private, hybrid and public networks. Any compromise of our ability to store or transmit such information and data securely or reliably,
and any costs associated with preventing or eliminating such problems, could harm our business. Storage and online transmissions are subject to a number
of security and stability risks, including:
The occurrence of any of these or similar events could damage our business, hurt our ability to distribute products and services and collect
revenue, threaten the proprietary or confidential nature of our technology, harm our reputation, and expose us to litigation or liability. Because some of our
technologies and businesses are intended to inhibit use of or restrict access to our customers' IP, we may become the target of hackers or other persons
whose use of or access to our customers' IP is affected by our technologies. Also, hackers may, for financial gain or other motives, seek to infiltrate or
damage our systems, or obtain sensitive business information or customer information. We also may be exposed to customer claims, or other liability, in
connection with any security breach or inadvertent disclosure. We may be required to expend significant capital or other resources to protect against the
threat of security breaches, hacker attacks or system malfunctions or to alleviate problems caused by such breaches, attacks or failures.
Our product and service offerings rely on a variety of systems, networks and databases, many of which are maintained by us at our data centers.
We do not have complete redundancy for all of our systems, and we do not maintain real
- time back - up of our data, so in the event of significant system
disruption, particularly during peak periods, we could experience loss of data processing capabilities, which could cause us to lose customers and could
harm our operating results. Notwithstanding our efforts to protect against “down time” for products and services, we do occasionally experience unplanned
outages or technical difficulties. In order to provide products and services, we must protect the security of our systems, networks, databases and software.
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our own or licensed encryption and authentication technology, or access or security procedures, may be compromised, breached or
otherwise be insufficient to ensure the security of customer information or IP;
•
we could experience unauthorized access, computer viruses, system interference or destruction, “denial of service” attacks and other
disruptive problems, whether intentional or accidental, that may inhibit or prevent access to our websites or use of our products and
services, or cause customer information or other sensitive information to be disclosed to a perpetrator, others or the general public;
•
someone could circumvent our security measures and misappropriate our, our business relations or customers' proprietary information or
content or interrupt operations, or jeopardize our licensing arrangements, many of which are contingent on our sustaining appropriate
security protections;
•
our computer systems could fail and lead to service interruptions or downtime for television or other guidance systems, or websites, which
may include e
- commerce websites;
•
we could inadvertently disclose customer information; or
•
we may need to grow, reconfigure or relocate our data centers in response to changing business needs, which may be costly and lead to
unplanned disruptions of service.