Electronic Arts 2008 Annual Report Download - page 86

them run properly. Other intellectual property is in the form of audio-visual elements that consumers can see,
hear and interact with when they are playing our games — we call this form of intellectual property “content”.
Our products embody a number of separate forms of intellectual property protection:
• The software and the content of our products are copyrighted;
• Our products may use patented inventions and/or trade secrets;
• Our product brands and names may be trademarks of ours or others;
• Our products may contain voices and likenesses of actors, athletes, celebrities and/or commentators
(which may be protected by personal publicity rights), and
• Our products often contain musical compositions and recordings that are also copyrighted.
Our products also may contain content licensed from others, such as trademarks, fictional characters, storylines
and software code.
We develop products from wholly-owned intellectual properties we create within our own studios. We also
acquire the rights to include proprietary intellectual property in our products through acquisitions. We also
enter into content license agreements such as those with sports leagues and player associations, movie studios
and performing talent, music labels, music publishers and musicians. These licenses are typically limited to
use of the licensed rights in products for specific time periods. In addition, our products that play on game
consoles, handhelds and cellular handsets include technology that is owned by the console or handset
manufacturer and licensed non-exclusively to us for use. We also license technology from providers other than
console and handset manufacturers. While we may have renewal rights for some licenses, our business and the
justification for the development of many of our products is dependent on our ability to continue to obtain the
intellectual property rights from the owners of these rights on reasonable terms and at reasonable rates.
As with other forms of entertainment, our products are susceptible to unauthorized copying. We typically
distribute our PC products using copy protection technology that we license from other companies. In addition,
console manufacturers typically incorporate security devices in their consoles in an effort to prevent the use of
unlicensed products. Our primary protection against unauthorized use, duplication and distribution of our
products is enforcement of our copyright and trademark interests. We typically own the copyright to the
software code as well as the brand or title name trademark under which our products are marketed. We
register our copyrights and trademarks in the United States and other countries.
Significant Relationships
Console Manufacturers
Sony. Under the terms of agreements we have entered into with Sony Computer Entertainment Inc. and its
affiliates, we are authorized to develop and distribute disk-based software products and online content
compatible with the PlayStation 2, PLAYSTATION 3 and PSP. Pursuant to these agreements, we engage Sony
to supply PlayStation 2, PLAYSTATION 3 and PSP disks for our products.
Microsoft. Under the terms of agreements we have entered into with Microsoft Corporation and its affiliates,
we are authorized to develop and distribute DVD-based software products and online content compatible with
the Xbox 360.
Nintendo. Under the terms of agreements we have entered into with Nintendo Co., Ltd. and its affiliates, we
are authorized to develop and distribute proprietary optical format disk products and cartridges compatible
with the Wii and the Nintendo DS. Pursuant to these agreements, we engage Nintendo to supply Wii
proprietary optical format disk products and Nintendo DS cartridges for our products.
Wireless Carriers
We have agreements to distribute our wireless applications through more than 160 carriers in over 50
countries. Our customers download our applications to their cellular handsets and their wireless carrier
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