Vistaprint 2009 Annual Report Download - page 36

comply with are complex and subject to unpredictable enforcement and modification. If the United
States were to impose further border controls and restrictions, interpret or apply regulations in a
manner unfavorable to the importation of products from outside of the U.S., impose quotas, tariffs or
import duties, increase the documentation requirements applicable to cross border shipments or take
other actions that have the effect of restricting the flow of goods from Canada and other countries to
the United States, we may have greater difficulty shipping products into the United States or be
foreclosed from doing so, experience shipping delays, or incur increased costs and expenses, all of
which would substantially impair our ability to serve the United States market and harm our business
and results of operations.
We may not be able to protect our intellectual property rights, which may impede our ability to
build brand identity, cause confusion among our customers, damage our reputation and permit
others to practice our patented technology, which could substantially harm our business and
results of operations.
We rely on a combination of patent, trademark, trade secret and copyright law and contractual
restrictions to protect our intellectual property. These protective measures afford only limited
protection. Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to
copy aspects of our trademarks, our websites features and functionalities or to obtain and use
information that we consider proprietary, such as the technology used to operate our websites and our
production operations.
As of June 30, 2009, we held 25 issued United States patents, 4 patents in other countries and
we had more than 50 patent applications pending in the United States and other countries. We intend
to continue to pursue patent coverage in the United States and other countries to the extent we believe
such coverage is justified, appropriate, and cost efficient. There can be no guarantee that any of our
pending applications or continuation patent applications will be granted. In addition, there could be
infringement, invalidity, co-inventorship or similar claims brought by third parties with respect to any of
our currently issued patents or any patents that may be issued to us in the future. For example,
administrative opposition proceedings asking the European Patent Office to reconsider the allowance
of one of our European patents relating to certain downloadable document design programs and
methods were filed in 2005. At a hearing held in April 2008, an opposition panel of the European
Patent Office indicated its intention to revoke the patent at issue, and in June, 2009, the panel issued a
written opinion stating the basis for its decision. Vistaprint has appealed the decision. Any similar
claims, whether or not successful, could be extremely costly, could damage our reputation and brand
and substantially harm our business and results of operations.
Our primary brand is “Vistaprint.” We hold trademark registrations for the Vistaprint trademark in
the United States, the European Union, Canada, Japan and various other jurisdictions. Our
competitors or other entities may adopt names or marks similar to ours, thereby impeding our ability to
build brand identity and possibly leading to customer confusion. There are several companies that
currently incorporate or may incorporate in the future “Vista” into their company, product or service
names, such as Microsoft Corporation’s decision to name one of its operating systems “Vista.” There
could be potential trade name or trademark infringement claims brought by owners of other registered
trademarks or trademarks that incorporate variations of the term Vistaprint or our other trademarks,
and we may institute such claims against other parties. Any claims or customer confusion related to
our trademarks could damage our reputation and brand and substantially harm our business and
results of operations.
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