These excerpts taken from the PFWD 10-K filed Feb 27, 2009.
Our success and ability to compete are dependent on our ability to develop and maintain the proprietary aspects of our technology and operate without infringing the proprietary rights of others. We rely upon a combination of trademark, trade secret, copyright, patent and unfair competition laws, as well as license agreements and other contractual provisions, to protect our intellectual property and other proprietary rights. In addition, we attempt to protect our intellectual property and proprietary information by requiring our employees and consultants to enter into confidentiality, non-competition
and assignment of inventions agreements. These legal protections afford only limited protection for our technology. We have registered trademarks and service marks in the United States and abroad, and applications for the registration of additional trademarks and service marks. Our principal trademarks are our company name "Phase Forward", the company name of our subsidiary, "Lincoln Technologies", and our product names, "InForm", "Clintrial", "Clintrace", "Empirica", "WebVDME", "CTSD", "WebSDM", "LabPas" and "Clarix." We may or may not choose to register some or all of our trademarks. If we apply for trademark registration, we cannot predict whether registrations will be approved or, if approved, will provide meaningful protection. In addition, we have been granted a patent by the U.S. Patent and Trademark Office. We cannot predict whether this patent will provide meaningful protection. Our agreements with employees, consultants and others who participate in development activities could be breached. We may not have adequate remedies for any breach, and our trade secrets may otherwise become known or independently developed by our competitors or other third parties. In addition, the laws of some foreign countries do not protect proprietary rights to the same extent as the laws of the United States, and effective copyright, patent, trademark and trade secret protection may not be available in those jurisdictions.
We have licensed in the past, and expect that we may license in the future, certain of our proprietary rights, such as trademarks, technology or copyrighted material, to third parties. Due to rapid technological change, we believe that factors such as the technological and creative skills of our personnel, new product and service developments and enhancements to existing products and services are more important than the various legal protections of our technology to establishing and maintaining a technology leadership position.
In addition, we license, and expect to continue to license, third-party technologies and other intellectual property rights that are incorporated into some elements of our services and solutions.
Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy aspects of our software solutions or to obtain and use information that we regard as proprietary. The laws of many countries do not protect our proprietary rights to as great an extent as do the laws of the United States. Litigation may be necessary in the future to enforce our intellectual property rights or to determine the validity and scope of the proprietary rights of others. Any such litigation could result in substantial costs and diversion of resources and could have a material adverse effect on our business, operating results or financial condition. There can be no assurance that our means of protecting our proprietary rights will be adequate or that our competitors will not independently develop similar technology. Any failure to meaningfully protect our intellectual property and other proprietary rights could have a material adverse effect on our business, operating results or financial condition.
In addition, if any of our software solutions is covered by third-party patents or other intellectual property rights, we could be subject to infringement actions. We cannot assure you that our software solutions do not infringe patents held by others or that they will not in the future. Any infringement claims made against us could cause us to incur substantial costs defending against the claim, even if the claim is without merit, and could distract our management from our business. Moreover, any settlement of or adverse judgment resulting from such claims could require us to pay substantial amounts or obtain a license to continue to use the technology that is the subject of the claim, or otherwise restrict or prohibit our use of the technology.
Any required licenses, however, may not be available to us on acceptable terms, if at all. If we do not obtain any required licenses, we could encounter delays in product introductions if we attempt to design around the technology at issue or to find another provider of suitable alternative technology to permit us to continue offering the applicable software solution. In addition, we generally provide in our customer agreements that we will indemnify our customers against third-party infringement claims relating to our technology provided to the customer, which could obligate us to fund significant amounts.
Our success and ability to compete are dependent on our ability to develop and maintain the proprietary aspects of our technology and
This excerpt taken from the PFWD 8-K filed Sep 11, 2008.
4.10 Intellectual Property.
(a) Except as set forth on Schedule 4.10(a), the Company and its Subsidiaries, own, license or otherwise have the right to use, all Intellectual Property necessary to conduct the Ordinary Course of Business of the Company and its Subsidiaries, as presently conducted (Company Intellectual Property), and except as set forth on Schedule 4.10(a) or (b), all such Company Intellectual Property or Company-Owned Software owned by the Company or its subsidiaries is owned free and clear of all Liens, other than for Permitted Liens. Schedule 4.10(a) lists all pending or abandoned applications for registration of any Company Intellectual Property made by the Company or its Subsidiaries and all active or abandoned registrations for Company Intellectual Property or Company-Owned Software made by the Company or its Subsidiaries in all jurisdictions worldwide. Schedule 4.10(a) also lists all trademarks, service marks brand names, trade names or company names owned or used by the Company or its Subsidiaries, and whether the Company or its Subsidiaries have registered such marks or rely on common law rights to such marks. Except as set forth on Schedule 4.10(a), no compensation or other consideration is owed to or claimed to be owed to any third-party by the Company due to the Companys ownership, license (as licensor or licensee) or use (directly or indirectly via another party) of Company Intellectual Property. Schedule 4.10(b) lists each Contract that relates to Company Intellectual Property that evidences (i) Liens (other than Permitted Liens) upon such owned Company Intellectual Property, (ii) the assignment, license or other transfer of rights to Company Intellectual Property by a third party to the Company or any of its Subsidiaries, (iii) assignment, license or other transfer of rights to Company Intellectual Property by the Company or any of its Subsidiaries to a third party other than end-user licenses granted by the Company or any of its Subsidiaries in the Ordinary Course of Business, or (iv) royalties or other payments that are payable by the Company or any of its Subsidiaries on account of the use or license of Company Intellectual Property.
(c) All Company Intellectual Property owned by the Company or any of its Subsidiaries has been (i) developed by employees of the Company or a Subsidiary thereof, (ii) developed by independent contractors to the Company or a Subsidiary thereof, (iii) acquired from a third party under a Contract listed on Schedule 4.10(b) and/or (iv) created as works made for hire. Except as set forth on Schedule 4.10(c), every current and former officer, manager, consultant, independent contractor and employee of the Company is obligated by a Contract that assigns to the Company or a Subsidiary thereof all of their interests in Company
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