1 unchanged sentence
Reference is made to Part I, Item 1A, “Risk Factors” included in our 2022 Form 10-K for information concerning risk factors, which should be read in conjunction with the factors set forth in the Statement Pursuant to the Private Securities Litigation Reform Act of 1995 -- Forward-Looking Statements in Part I, Item 2 of this Quarterly Report on Form 10-Q.
−Removed: Except as set forth below, there have been no material changes with respect to the risk factors disclosed in our 2021 Form 10-K.
+Added: There have been no material changes with respect to the risk factors disclosed in our 2022 Form 10-K.
You should carefully consider such factors, which could materially affect our business, financial condition or future results.
−Removed: The risks described in this Quarterly Report on Form 10-Q and in the 2021 Form 10-K are not the only risks facing our company.
+Added: The risks described in the 2022 Form 10-K are not the only risks facing our company.
Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.
−Removed: Rising inflation may result in increased costs of operations
−Removed: Inflation has accelerated in the U.S.
−Removed: and globally.
−Removed: A majority of our revenue is derived from patent license agreements that provide for fixed payments that were negotiated before the recent rise in inflation.
−Removed: An inflationary environment can increase our cost of labor, as well as our other operating costs without a corresponding increase in our revenue, which may have a material adverse impact on our operating results and financial condition.
−Removed: Potential patent and litigation reform legislation, potential USPTO and international patent rule changes, potential legislation affecting mechanisms for patent enforcement and available remedies, and potential changes to the intellectual property rights (“IPR”) policies of worldwide standards bodies, as well as rulings in legal proceedings, may affect our investments in research and development and our strategies for patent prosecution, licensing and enforcement and could have a material adverse effect on our licensing business as well as our business as a whole.
−Removed: Potential changes to certain U.S.
−Removed: and international patent laws, rules and regulations may occur in the future, some or all of which may affect our research and development investments, patent prosecution costs, the scope of future patent coverage we secure, the number of forums in which we can seek to enforce our patents, the remedies that we may be entitled to in patent litigation, and attorneys’ fees or other remedies that could be sought against us, and may require us to reevaluate and modify our research and development activities and patent prosecution, licensing and enforcement strategies.
−Removed: For example, the State Administration for Market Regulation in China requested comments on June 27, 2022 on its draft Provisions on the Prohibition of the Abuse of Intellectual Property Rights to Exclude or Restrict Competition.
−Removed: If adopted as drafted, among other things, the provisions might create an ambiguous standard for a violation of Chinese antitrust laws where a patent holder seeks to enforce its patents “improperly”.
−Removed: The European Commission has also initiated a process to review the EU’s IP policies, in particular as they relate to SEPs and FRAND.
−Removed: Any change as it relates to these matters could impact our ability to negotiate license agreements on favorable terms or at all, limit our potential legal remedies and materially impact our business.
−Removed: Further, legislation designed to reduce the jurisdiction and remedial authority of the USITC has periodically been introduced in Congress.
−Removed: Any potential changes in the law, the IPR policies of standards bodies or other developments that reduce the number of forums available or the type of relief available in such forums (such as injunctive relief), restrict permissible licensing practices (such as our ability to license on a worldwide portfolio basis) or that otherwise cause us to seek alternative forums (such as arbitration or state court), would make it more difficult for us to enforce our patents, whether in adversarial proceedings or in negotiations.
−Removed: Because we have historically depended on the availability of certain forms of legal process to enforce our patents and obtain fair and adequate compensation for our investments in research and development and the unauthorized use of our intellectual property, developments that undermine our ability to do so could have a negative impact on future licensing efforts.
−Removed: Rulings in our legal proceedings as well as those of third parties may affect our strategies for patent prosecution, licensing and enforcement.
−Removed: For example, in recent years, the USITC and U.S.
−Removed: courts, including the U.S.
−Removed: Supreme Court and the U.S.
−Removed: Court of Appeals for the Federal Circuit, have taken some actions that have been viewed as unfavorable to patentees, including us.
−Removed: Decisions that occur in the U.S.
−Removed: or in international forums may change the law applicable to various patent law issues, such as, for example, patentability, validity, claim construction, patent exhaustion, patent misuse, permissible licensing practices, available forums, and remedies such as damages and injunctive relief, in ways that are detrimental to the ability of patentees to enforce patents and obtain suitable relief.
−Removed: We continue to monitor and evaluate our strategies for prosecution, licensing and enforcement of our rights with regard to these developments;
−Removed: however, any resulting change in such strategies may have an adverse impact on our business and financial condition.
−Removed: We may not be able to attract and retain qualified employees .
−Removed: Competition for top talent is substantial and increasing.
−Removed: In order to be successful, we must attract, develop, and retain employees.
−Removed: Implementing our business strategy requires specialized engineering and other technical talent, and these skills are in high demand among our competitors.
−Removed: The market for employees in our industry is extremely competitive, and competitors for talent, particularly engineering talent, increasingly attempt to hire, and to varying degrees have been successful in hiring, our employees or employment candidates.
−Removed: Further, the increased availability of remote working arrangements, largely driven by the COVID-19 pandemic, has expanded the pool of companies that can compete for our employees and employment candidates.
−Removed: A number of such competitors for talent are significantly larger than us and may be able to offer compensation, benefits or work arrangements perceived as more desirable than what we are able to offer.
−Removed: Wage inflation driven by the current inflationary economic environment could make it even more difficult to attract and retain talent.
−Removed: If we are unable to recruit, retain, and motivate our employees, then we may not be able to innovate, execute on our strategy and grow our business as planned.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.