Vistaprint 2006 Annual Report Download - page 31

Table of Contents
Alternatively, we may be required to, or decide to, enter into a license with a third party. Any license required under any patent may not be
made available on commercially acceptable terms, if at all. In addition, such licenses are likely to be non−exclusive and, therefore, our competitors
may have access to the same technology licensed to us. If we fail to obtain a required license and are unable to design around a third party
patent, we may be unable to effectively conduct certain of our business activities, which could limit our ability to generate revenues or maintain
profitability and possibly prevent us from generating revenue sufficient to sustain our operations.
We sell our products and services exclusively through our websites and our inability to acquire or maintain domain names for our
websites could result in the loss of customers which would substantially harm our business and results of operations.
We sell our products and services exclusively through our websites. We currently own or control a number of Internet domain names used
in connection with our various websites, including VistaPrint.com and similar names with alternate URL names, such as .net, .de and .co.uk.
Domain names generally are regulated by Internet regulatory bodies. If we lose the ability to use a domain name in a particular country, we would
be forced to either incur significant additional expenses to market our products within that country, including the development of a new brand and
the creation of new promotional materials and packaging, or elect not to sell products in that country. Either result could substantially harm our
business and results of operations. Furthermore, the relationship between regulations governing domain names and laws protecting trademarks
and similar proprietary rights is unclear and subject to change. We might not be able to prevent third parties from acquiring domain names that
infringe or otherwise decrease the value of our trademarks and other proprietary rights. Regulatory bodies could establish additional top−level
domains, appoint additional domain name registrars or modify the requirements for holding domain names. As a result, we may not be able to
acquire or maintain the domain names that utilize the name VistaPrint in all of the countries in which we currently or intend to conduct business.
Our revenues may be negatively affected if we are required to charge sales or other taxes on purchases.
We do not collect or have imposed upon us sales or other taxes related to the products and services we sell, except for certain corporate
level taxes and value added and similar taxes in certain jurisdictions. However, one or more jurisdictions or countries may seek to impose sales or
other tax collection obligations on us in the future. A successful assertion by one or more governments, including any country in which we do
business or sub−federal authorities such as states in the United States, that we should be collecting sales or other taxes on the sale of our
products could result in substantial tax liabilities for past sales, discourage customers from purchasing products from us, decrease our ability to
compete with traditional retailers or otherwise substantially harm our business and results of operations.
Currently, decisions of the United States Supreme Court restrict the imposition of obligations to collect state and local sales and use taxes
with respect to sales made over the Internet in the United States. However, implementation of the restrictions imposed by these Supreme Court
decisions is subject to interpretation by state and local taxing authorities. While we believe that these Supreme Court decisions currently restrict
state and local taxing authorities in the United States from requiring us to collect sales and use taxes from purchasers located within their
jurisdictions, taxing authorities could disagree with our interpretation of these decisions. Moreover, a number of states in the United States, as well
as the United States Congress, have been considering various initiatives that could limit or supersede the Supreme Court’s position regarding
sales and use taxes on Internet sales. If any state or local taxing jurisdiction were to disagree with our interpretation of the Supreme Court’s
current position regarding state and local taxation of Internet sales, or if any of these initiatives were to address
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