internationally, we have filed various applications for protection of certain aspects of our intellectual property,
and we currently hold a number of issued patents in multiple jurisdictions and have acquired patents and patent
applications from third parties. In addition, in the future we may acquire additional patents or patent portfolios,
which could require significant cash expenditures. Third parties may knowingly or unknowingly infringe our
proprietary rights, third parties may challenge proprietary rights held by us, and pending and future trademark
and patent applications may not be approved. In addition, effective intellectual property protection may not be
available in every country in which we operate or intend to operate our business. In any or all of these cases, we
may be required to expend significant time and expense in order to prevent infringement or to enforce our rights.
Although we have taken measures to protect our proprietary rights, there can be no assurance that others will not
offer products or concepts that are substantially similar to ours and compete with our business. In addition, we
regularly contribute software source code under open source licenses and have made other technology we
developed available under other open licenses, and we include open source software in our products. For
example, we have contributed certain specifications and designs related to our data center equipment to the Open
Compute Project Foundation, a non-profit entity that shares and develops such information with the technology
community, under the Open Web Foundation License. As a result of our open source contributions and the use of
open source in our products, we may license or be required to license innovations that turn out to be material to
our business and may also be exposed to increased litigation risk. If the protection of our proprietary rights is
inadequate to prevent unauthorized use or appropriation by third parties, the value of our brand and other
intangible assets may be diminished and competitors may be able to more effectively mimic our service and
methods of operations. Any of these events could have an adverse effect on our business and financial results.
claims that are expensive and time consuming, and, if resolved adversely, could have a significant impact on
our business, financial condition, or results of operations.
misappropriation, or other violations of intellectual property or other rights. In addition, various "non-practicing
entities" that own patents and other intellectual property rights often attempt to aggressively assert their rights in
order to extract value from technology companies. Furthermore, from time to time we may introduce new
products, including in areas where we currently do not compete, which could increase our exposure to patent and
other intellectual property claims from competitors and non-practicing entities.
as we face increasing competition and gain an increasingly high profile, we expect the number of patent and
other intellectual property claims against us to grow. Defending patent and other intellectual property litigation is
costly and can impose a significant burden on management and employees, and there can be no assurances that
favorable final outcomes will be obtained in all cases. In addition, plaintiffs may seek, and we may become
subject to, preliminary or provisional rulings in the course of any such litigation, including potential preliminary
injunctions requiring us to cease some or all of our operations. We may decide to settle such lawsuits and
disputes on terms that are unfavorable to us. Similarly, if any litigation to which we are a party is resolved
adversely, we may be subject to an unfavorable judgment that may not be reversed upon appeal. The terms of
such a settlement or judgment may require us to cease some or all of our operations or pay substantial amounts to
the other party. In addition, we may have to seek a license to continue practices found to be in violation of a third
party's rights, which may not be available on reasonable terms, or at all, and may significantly increase our
operating costs and expenses. As a result, we may also be required to develop alternative non-infringing
technology or practices or discontinue the practices. The development of alternative non-infringing technology or
practices could require significant effort and expense or may not be feasible. Our business, financial condition,
and results of operations could be adversely affected as a result of an unfavorable resolution of the disputes and
litigation referred to above.