Vistaprint 2009 Annual Report Download - page 21

their sites and in promotional materials and we pay program members for sales generated through
those links.
We have entered into a variety of strategic partnerships that facilitate access to customers that
would be difficult to reach through traditional direct marketing channels. We focus on cultivating
opportunities with strategic importance in the small business marketplace and seek to partner with
companies that have large numbers of well established small business customer relationships.
For example, we have developed a scalable capability to address the market of customers who
choose to order customized products and services through retail and on-line properties of office
superstores, retailers and copy storefronts, through strategic partnerships with third parties, including
OfficeMax, Office Depot and FedEx Office. We have also entered into strategic partnerships with
online and software vendors to small businesses, such as Intuit. We believe we are positioned to
develop even broader and deeper relationships in these markets.
In addition, we create co-branded versions of our websites and web landing pages for companies
in a variety of industries, such as franchised organizations seeking brand consistency. In general,
these arrangements involve payment of a commission or revenue share to these companies for sales
of our products and services generated through these websites and web pages.
Intellectual Property
We seek to protect our proprietary rights through a combination of patent, copyright, trade secret,
and trademark law and contractual restrictions, such as confidentiality agreements and proprietary
rights agreements. We enter into confidentiality and proprietary rights agreements with our employees,
consultants and business partners, and control access to and distribution of our proprietary
information.
We currently hold 25 issued United States patents and 4 patents in other countries. Subject to our
continued payment of required patent maintenance fees, our currently issued patents will expire
between December 2016 and April 2027. In addition, we currently have more than 50 patent
applications pending in the United States and other countries and we intend to pursue corresponding
patent coverage in additional countries to the extent we believe such coverage is justified, appropriate,
and cost efficient. Our issued patents relate generally to our automated process for receiving,
processing, aggregating and producing multiple individual print jobs and to automated processes for
facilitating document creation at a client system.
From time to time, third parties may allege that we have violated their intellectual property rights.
In addition, a third party may claim that we have improperly obtained or used its confidential or
proprietary information. We have in the past received letters from third parties that state that these third
parties have patent rights that cover aspects of the technology that we use in our business and that the
third parties believe we are obligated to license in order to continue to use such technology. Any claims
that our products or processes infringe the intellectual property rights of others, regardless of the merit
or resolution of such claims, could cause us to incur significant costs in responding to, defending, and
resolving such claims, and may divert the efforts and attention of our management and technical
personnel away from our business. As a result of such intellectual property infringement claims, we
could be required or otherwise decide it is appropriate to:
‰pay damages;
‰discontinue manufacturing, using, or selling particular products subject to infringement claims;
‰discontinue using or providing the technology or processes subject to infringement claims;
Form 10-K
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