Vistaprint 2015 Annual Report Download - page 30

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If we are unable to protect our intellectual property rights, our reputation and brands could be damaged,
and others may be able to use our technology, which could substantially harm our business and financial
results.
We rely on a combination of patents, trademarks, trade secrets and copyrights and contractual restrictions
to protect our intellectual property, but these protective measures afford only limited protection. Despite our efforts
to protect our proprietary rights, unauthorized parties may be able to copy or use technology or information that we
consider proprietary. There can be no guarantee that any of our pending patent applications or continuation patent
applications will be granted, and from time to time we face infringement, invalidity, intellectual property ownership,
or similar claims brought by third parties with respect to our patents. In addition, despite our trademark registrations
throughout the world, our competitors or other entities may adopt names, marks, or domain names similar to ours,
thereby impeding our ability to build brand identity and possibly leading to customer confusion. For example, some
of our competitors purchase the term “Vistaprint” and other terms incorporating our proprietary trademarks from
Google and other search engines as part of their search listing advertising, and courts do not always side with the
trademark owners in cases involving search engines. Enforcing our intellectual property rights can be extremely
costly, and a failure to protect or enforce these rights could damage our reputation and brands and substantially
harm our business and financial results.
Intellectual property disputes and litigation are costly and could cause us to lose our exclusive rights,
subject us to liability, or require us to stop some of our business activities.
From time to time, we receive claims from third parties that we infringe their intellectual property rights, that
we are required to enter into patent licenses covering aspects of the technology we use in our business, or that we
improperly obtained or used their confidential or proprietary information. Any litigation, settlement, license, or other
proceeding relating to intellectual property rights, even if we settle it or it is resolved in our favor, could be costly,
divert our management's efforts from managing and growing our business, and create uncertainties that may make
it more difficult to run our operations. If any parties successfully claim that we infringe their intellectual property
rights, we might be forced to pay significant damages and attorney's fees, and we could be restricted from using
certain technologies important to the operation of our business.
Our business is dependent on the Internet, and unfavorable changes in government regulation of the
Internet, e-commerce, and email marketing could substantially harm our business and financial results.
Due to our dependence on the Internet for our sales, laws specifically governing the Internet, e-commerce
and email marketing may have a greater impact on our operations than other more traditional businesses. Existing
and future laws, such as laws covering pricing, customs, privacy, consumer protection, or commercial email, may
impede the growth of e-commerce and our ability to compete with traditional “bricks and mortar” retailers. It is not
always clear how existing laws governing these and other issues apply to the Internet and e-commerce, as the vast
majority of applicable laws were adopted before the advent of the Internet and do not contemplate or address the
unique issues raised by the Internet or e-commerce. Those laws that do reference the Internet, such as the
Bermuda Electronic Transactions Act 1999, the U.S. Digital Millennium Copyright Act, and the U.S. CAN SPAM Act
of 2003, are only beginning to be interpreted by the courts, and their applicability and reach are therefore uncertain.
Those current and future laws and regulations or unfavorable resolution of these issues may substantially harm our
business and financial results.
Our suppliers' failure to use legal and ethical business practices could negatively impact our business.
We source the raw materials for the products we sell from an expanding number of suppliers in an
increasing number of jurisdictions worldwide, and we require our suppliers to operate in compliance with all
applicable laws, including those regarding corruption, working conditions, employment practices, safety and health,
and environmental compliance. However, we cannot control our suppliers' business practices, and we may not be
able to adequately monitor and audit our many suppliers throughout the world. If any of our suppliers violates labor,
environmental, or other laws or implements business practices that are regarded as unethical, our reputation could
be severely damaged, and our supply chain could be interrupted, which could harm our sales and results of
operations.