The company is involved in lawsuits regarding patent issues and has also been notified of other potential patent disputes. The
company has been in other legal proceedings that include claims of alleged infringement of trademarks, trade secrets, copyrights,
and other intellectual property rights, claims related to employment matters, claims alleging defamation, invasion of privacy, or
similar claims arising in connection with the company’s e-mail, message boards, photo and video sites, auction sites, shopping
services, and other communications and community features. In the event of adverse verdicts, the company may have to bear
financial losses, which would have an adverse affect on its business.