us to reopen or replace any one or more of these facilities, which may or may not be
reimbursed by insurance. As a result, disruption at one or more of these facilities could adversely
affect our profitability.
We may be a party to litigation involving our eCommerce intellectual property rights. If third
parties claim we are infringing their intellectual property rights, we could incur significant
litigation costs, be required to pay damages, or change our business or incur licensing expenses.
In recent years, there has been significant litigation in the United States involving patent
and other intellectual property rights. We may be a party to intellectual property litigation in
the future to protect our trade secrets or know-how. United States patent applications are
confidential until a patent is issued and most technologies are developed in secret. Accordingly,
we are not, and cannot be, aware of all patents or other intellectual property rights of which our
services may pose a risk of infringement. Others asserting rights against us could force us to
defend ourselves or our customers against alleged infringement of intellectual property rights. We
could incur substantial costs to prosecute or defend any such litigation.
Third parties have asserted, and may in the future assert, that our business or the
technologies we use infringe on their intellectual property rights. As a result, we may be subject
to intellectual property legal proceedings and claims in the ordinary course of business. We cannot
predict whether third parties will assert claims of infringement in the future or whether any
future claims will prevent us from offering popular products or services. If we are found to
infringe, we may be required to pay monetary damages, which could include treble damages and
attorneys fees for any infringement that is found to be willful, and either be enjoined or
required to pay ongoing royalties with respect to any technologies found to infringe. Further, as a
result of infringement claims either against us or against those who license technology to us, we
may be required, or deem it advisable, to develop non-infringing technology, which could be costly
and time consuming, or enter into costly royalty or licensing agreements. Such royalty or licensing
agreements, if required, may be unavailable on terms that are acceptable, or at all. If a third
party successfully asserts an infringement claim against us and we are enjoined or required to pay
monetary damages or royalties or we are unable to develop suitable non-infringing alternatives or
license the infringed or similar technology on reasonable terms on a timely basis, our business,
results of operations and financial condition could be materially harmed.
A breach of our eCommerce security measures could reduce demand for our services. Credit card fraud
and other fraud could adversely affect our business.
A requirement of the continued growth of eCommerce is the secure transmission of confidential
information over public networks. A party who is able to circumvent our security measures could
misappropriate proprietary information or interrupt our operations. Any compromise or elimination
of our security could reduce demand for our services.
We may be required to expend significant capital and other resources to protect against
security breaches or to address any problem they may cause. Because our activities involve the
storage and transmission of proprietary information, such as credit card numbers, security breaches
could damage our reputation, cause us to lose clients, impact our ability to attract new clients
and we could be exposed to litigation and possible liability. Our security measures may not prevent
security breaches, and failure to prevent security breaches may disrupt our operations. In certain
circumstances, we do not carry insurance against the risk of credit card fraud and other fraud, so
the failure to adequately control fraudulent transactions on either our behalf or our clients
behalf could increase our expenses.
We may be liable for misappropriation of our customers and our clients customers personal
Data security laws are becoming more stringent in the United States and abroad. Third parties
are engaging in increased cyber attacks against companies doing business on the Internet and
individuals are increasingly subjected to identity and credit card theft on the Internet. If third
parties or unauthorized employees are able to penetrate our network security or otherwise
misappropriate our or our clients customers personal information or credit card information, or
if we give third parties or our employees improper access to customers personal information or
credit card information, we could be subject to liability. This liability could include claims for
unauthorized purchases with credit card information, impersonation or other similar fraud claims.
This liability could also include