Yahoo 2007 Annual Report Download - page 17

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advertisers worldwide to maximize the social and economic potential of the Internet. Yahoo! performs research to
address fundamental problems facing users such as: making their search for information on the Internet easier and
more relevant; bringing them tools to help solve their problems; finding new and better ways for them to connect
and communicate with family and community; and guiding family and friends towards high-quality products,
songs, movies, and other resources. We also use technology to match relevant business services with customers
most likely to be interested in such services. Yahoo! Research Berkeley is a research facility that operates in a
partnership between Yahoo! Research Labs and the University of California at Berkeley (“UCB”). We believe this
is a mutually beneficial intellectual property arrangement, and an opportunity for students and staff at UCB to gain
access to resource and scale typically not afforded in the academic environment. The mission of Yahoo! Research
Berkeley is to explore and invent social media and mobile media technology and applications that will enable
people to create, describe, share, find, and remix media on the Web.
Our engineering and production teams are primarily located in our Sunnyvale, California headquarters and in
Bangalore, India and Burbank, California. Our research teams are located in our Sunnyvale, California head-
quarters and in Berkeley, California; Burbank, California; New York, New York; Barcelona, Spain; and Santiago,
Chile. We have internally developed, acquired, or licensed the products and services we offer. Product
development expenses for 2005, 2006, and 2007 totaled approximately $570 million, $833 million, and $1,084 mil-
lion, respectively, which included stock-based compensation expense of $22 million, $145 million, and $218 mil-
lion, respectively.
INTELLECTUAL PROPERTY
We create, own, and maintain a wide array of intellectual property assets that we believe are among our most
valuable assets. Our intellectual property assets include patents and patent applications related to our innovations,
products and services; trademarks related to our brands, products and services; copyrights in software and creative
content; trade secrets; and other intellectual property rights and licenses of various kinds. We seek to protect our
intellectual property assets through patent, copyright, trade secret, trademark and other laws of the U.S. and other
countries, and through contractual provisions. We enter into confidentiality and invention assignment agreements
with our employees and contractors, and non-disclosure agreements with third parties with whom we conduct
business in order to secure our proprietary rights and additionally limit access to, and disclosure of, our proprietary
information. We consider the Yahoo! trademark and our many related trademarks to be among our most valuable
assets and we have registered these trademarks in the U.S. and other countries throughout the world and
aggressively seek to protect them. We have licensed in the past, and expect that we may license in the future,
certain of our proprietary rights, such as trademark, patent, copyright, and trade secret rights to third parties.
Additional information regarding certain risks related to our intellectual property is included in Part I, Item 1A
“Risk Factors” of this Annual Report on Form 10-K.
EMPLOYEES
As of December 31, 2007, we had approximately 14,300 full-time employees. Our future success is substantially
dependent on the performance of our senior management and key technical personnel, as well as our continuing
ability to attract, maintain the caliber of, and retain highly qualified technical and managerial personnel. Additional
information regarding certain risks related to our employees is included in Part I, Item 1A “Risk Factors” of this
Annual Report on Form 10-K.
AVAILABLE INFORMATION
Our Website is located at http://www.yahoo.com. Our investor relations Website is located at
http://yhoo.client.shareholder.com/. We make available free of charge on our investor relations Website under
“SEC Filings” our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K,
and any amendments to those reports as soon as reasonably practicable after we electronically file or furnish such
materials to the U.S. Securities and Exchange Commission (“SEC”). Further, a copy of this annual report on
Form 10-K is located at the SEC’s Public Reference Room at 100 F Street, NE, Room 1580, Washington, D.C.
20549. Information on the operation of the Public Reference Room can be obtained by calling the SEC at
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