eBay 2006 Annual Report Download - page 14

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amounts of data, eases the deployment and operation of large-scale global products and services and automates
much of the administration of large-scale clusters of computers. Our infrastructure has been designed around
industry-standard architectures to reduce downtime in the event of outages or catastrophic occurrences. We are
continually improving our technology to enhance the customer experience and to increase efficiency, scalability and
security. For information regarding technology related risks, see the information in “Item 1A: Risk Factors” under
the caption “Our failure to manage growth could harm our business.”
Communications
Skype’s VoIP communications and other services are delivered through a peer-to-peer network architecture
whereby users joining the network provide much of the technology resources that enable the Skype services. To
access Skype’s services, users download Skype software over the Internet. Skype utilizes a combination of
proprietary technologies and services as well as technologies and services provided by others to design, develop and
support its software products. For more information regarding Skype’s technology risks, see the information in
“Item 1A: Risk Factors” under the caption “Skype depends on key technology that is licensed from third parties.”
Intellectual Property
We regard the protection of our trademarks, copyrights, patents, domain names, trade dress and trade secrets as
critical to our success. We have entered into confidentiality and invention assignment agreements with our
employees and contractors, and nondisclosure agreements with parties with whom we conduct business in order to
limit access to and disclosure of our proprietary information.
We aggressively protect our intellectual property rights by relying on a combination of trademark, copyright,
patent, trade dress and trade secret laws and by using the domain name dispute resolution system. As a result, we
actively pursue the registration of our trademarks, copyrights, patents and domain names in the U.S. and other major
countries. The expansion of our business has required us to protect our trademarks, patents and domain names in an
increasing number of jurisdictions, a process that is expensive, may require litigation, and may not be successful in
every location. We have registered or applied to register for our “eBay” trademark in the U.S. and over 50
non-U.S. jurisdictions and have in place an active program to continue securing the “eBay,” “PayPal,” and “Skype”
domain names in major non-U.S. jurisdictions. If we are unable to secure our trademarks or domain names, we
could be adversely affected in any jurisdiction in which our trademarks or domain names we are not registered.
Third parties have from time to time claimed, and others may claim in the future, that we have infringed their
intellectual property rights. We currently are involved in several such legal proceedings. Please see the information
in “Item 3: Legal Proceedings” and in “Item 1A: Risk Factors” under the captions “We are subject to patent
litigation” and “We may be unable to protect or enforce our own intellectual property rights adequately.”
Segments and Geographic Information
For an analysis of financial information about our segments as well as our geographic areas, see “Note 4 —
Segments” to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
Available Information
Our Internet address is www.ebay.com. Our investor relations website is located at http://investor.ebay.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 amendments to those reports as
soon as reasonably practicable after we electronically file or furnish such materials to the SEC.
ITEM 1A: RISK FACTORS
The risks and uncertainties described below are not the only ones we face. Other events that we do not
currently anticipate or that we currently deem immaterial also may affect our results of operations and financial
condition.
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