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Tuesday, October 23, 2012 9:47:02 PM
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From Google's 2011 Annual Report Page 75+ on IP Lawsuits
By caseyny2005 . 13 minutes ago . Permalink
"Patent and Intellectual Property Claims
We have had patent, copyright, and trademark infringement lawsuits filed against us claiming that certain of
our products, services, and technologies, including Android, Google Search, Google AdWords, Google AdSense,
Google Books, Google News, Google Image Search, Google Chrome, Google Talk, Google Voice, and YouTube,
infringe the intellectual property rights of others. Adverse results in these lawsuits may include awards of
substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering
certain features, functionalities, products, or services, and may also cause us to change our business practices,
and require development of non-infringing products or technologies, which could result in a loss of revenues for us
and otherwise harm our business.
In addition, many of our agreements with our customers and partners require us to indemnify them for certain
intellectual property infringement claims against them, which would increase our costs as a result of defending
such claims, and may require that we pay significant damages if there were an adverse ruling in any such claims.
Furthermore, such customers and partners may discontinue the use of our products, services, and technologies,
as a result of injunctions or otherwise, which could result in loss of revenues and adversely impact our business.
Other
We are also regularly subject to claims, suits, government investigations, and other proceedings involving
competition and antitrust (such as the pending investigations by the FTC and the EC described above), intellectual
75property, privacy, tax, labor and employment, commercial disputes, content generated by our users, goods and
services offered by advertisers or publishers using our platforms, and other matters. Such claims, suits,
government investigations, and other proceedings could result in fines, civil or criminal penalties, or other adverse
consequences.
Certain of our outstanding legal matters include speculative claims for substantial or indeterminate amountsof damages. We record a liability when we believe that it is both probable that a loss has been incurred, and the
amount can be reasonably estimated. We evaluate, on a monthly basis, developments in our legal matters that
could affect the amount of liability that has been previously accrued, and make adjustments as appropriate.
Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss
related to such matters.
With respect to our outstanding legal matters, based on our current knowledge, we believe that the amount or
range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on
our business, consolidated financial position, results of operations, or cash flows. However, the outcome of such
legal matters is inherently unpredictable and subject to significant uncertainties.
We expense legal fees in the period in which they are incurred"
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