eBay 2007 Annual Report Download - page 22

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 the heading “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
Risk Factors That May Affect Results of Operations and Financial Condition
The risks and uncertainties described below are not the only ones facing us. Other events that we do not
currently anticipate or that we currently deem immaterial also may affect our results of operations and financial
condition.
Our operating results may fluctuate.
Our operating results have varied on a quarterly basis during our operating history. Our operating results may
fluctuate significantly as a result of a variety of factors, many of which are outside our control. Factors that may
affect our operating results include the following:
• our ability to retain an active user base, attract new users, and encourage existing users to list items for sale,
purchase items through our websites, or use our payment service or communication software and products;
• our ability to increase activity of the users of our Marketplaces business, especially with respect to our top
buyers and sellers, in our most mature geographies, especially the U.S., Germany and the U.K.;
• the volume, size, timing, monetization, and completion rates of transactions using our websites or
technology;
• the amount and timing of operating costs and capital expenditures relating to the maintenance and expansion
of our businesses, operations, and infrastructure;
• the effect of recently announced changes to our pricing, products and policies, including our buyer/seller
feedback features;
• the effect of recently announced management changes;
• general economic conditions, including higher inflation, the possibility of a recession in the U.S. and interest
rate fluctuations, as well as those economic conditions specific to the Internet and ecommerce industries;
• regulatory and legal actions imposing obligations on our businesses or our users;
• new laws or regulations, or interpretations of existing laws or regulations, that impose liability on us for
actions of our users or otherwise harm our business models or restrict the Internet, electronic commerce,
online payments, or online communications;
• the actions of our competitors, including the introduction of new sites, services, and products;
• consumer confidence in the safety and security of transactions using our websites or technology and our
ability to manage the costs of our user protection programs;
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