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Non-Tech : Radica Games (RADA)
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To: jerald morse who wrote (1856)1/14/1998 5:35:00 PM
From: Gurupup  Read Replies (1) of 7111
 
INTELLECTUAL PROPERTY RISKS
From time to time, other companies and individuals may asset exclusive
patent, copyright, trademark and other intellectual property rights to
technologies or marks that are important to the electronic handheld and
mechanical games industry generally or to the Company's business specifically.
The Company has recently been contacted by a Japanese company which has asserted
that certain of the Company's electronic games may infringe patents of such
other company. The Company has only begun to evaluate this matter. The Company
will evaluate each claim relating to its products and, if appropriate, will seek
a license to use the protected technology. There can be no assurance that the
Company will be able to obtain licenses to intellectual property of third
parties on commercially reasonable terms, if at all. In addition, the Company
could be at a disadvantage if its competitors obtain licenses for protected
technologies on more favorable terms than does the Company. If the Company or
its suppliers are unable to license protected technology used in the Company's
products, the Company could be prohibited from marketing those products or may
have to market products without desirable features. The Company could also incur
substantial costs to redesign its products or to defend any legal action taken
against the Company. If the Company's products should be found to infringe
protected technology, the Company could be enjoined from further infringement
and required to pay damages to the infringed party. Any of the foregoing could
have an adverse effect on the results of operations and financial position of
the Company.CHANGING CONSUMER PREFERENCES
The toy market is characterized by changing consumer preferences and
frequent new product introductions which reduce the length of product life
cycles. There can be no assurance that any of
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