interruptions in our information systems on which our global operations depend. We may in the future experiencedepend or unplanned downtime of the infrastructure that delivers our SaaS. Such an unplanned interruption, even if temporary, could stop SaaS products. Further,customers from accessing their hosted data or on-premise customers from downloading licensed software or critical security patches, or from accessing our support portal, which could mean that we may face attempts by othersnot meet our contractual commitments for such services to gaincustomers, which could reduce our revenue or result in damage to our reputation and negatively impact future sales. Further, the information technology and infrastructure that stores and processes our and our customers’ data is susceptible to continually evolving cybersecurity threats that become more complex over time and may not be recognized until launched against a target, all of which could result in unauthorized access through the Internet to, or acquisition of, our information technology systems whether hosted by usdata, and interruption or disruption of our business. We and our third-party service providers, to intentionally hack, interfere with or cause physical or digital damage to or failure of such systems (such as significant viruses or worms), which attemptswhom we or theymay share data, may be unable to prevent. Ouranticipate these techniques or may not implement adequate preventative measures to prevent either unauthorized access to our systems or services that could compromise customer data or other confidential information or result in a disruption of our services. In particular, our industry is often the target of cyber-attacks by third parties seeking unauthorized access to confidential or sensitive data, including customer confidential information, or to disrupt our ability to provide services from a broad range of threat actors, including foreign governments, criminals, competitors, computer hackers, cyber terrorists and politically motivated groups or individuals. The security measures we have integrated into our internal systems, SaaS, and software products, which are designed to detect unauthorized intrusions or activity and prevent or minimize security breaches, may alsonot function as expected or may not be breachedsufficient to protect our internal networks, SaaS, and software products against certain attacks and other security incidents and attacks of varying degrees from time to time. In some cases, we do not have contracts to provide legal protection or recourse for breaches of our security protections, which may increase our exposure to expenses related to such attacks and negatively impact our results.
Ransomware attacks are becoming increasingly prevalent and severe, and can lead to significant interruptions in our operations, loss of data and income, reputational loss, diversion of funds, and may result in fines, litigation and unwanted media attention. Extortion payments may alleviate the negative impact of a ransomware attack, but we may be unwilling or unable to make such payments due to, employee errors, malfeasance,for example, applicable laws or otherwise. Despiteregulations prohibiting payments. Territorial invasions like Russia’s invasion of Ukraine or other geopolitical events can lead to cybersecurity attacks on technology companies, such as ours, located far outside of the conflict zone. In the event of prolonged business interruptions due to a security breach or disruption, we could incur significant losses, require substantial recovery time and experience significant expenditures in order to resume our ongoing efforts to enhance our network security measures, ourbusiness operations.
Our information systems are susceptible to computer viruses, cyber-related security breaches, and similar disruptions from unauthorized intrusions, tampering, misuse, criminal acts including phishing, or other events or developments that we may be unable to anticipate or fail to mitigate and are subject to the inherent vulnerabilities of networkmitigate. Our security measures. For example, in the middle of 2020, we became aware that a malicious third-party actor had fraudulently obtained one-time credentials to a limited set of hosts in a small segregated part of our networkmeasures may also be circumvented or bypassed due to a vulnerability in a third-party VPN device.employee errors or malfeasance. Third parties may also attempt to influencefraudulently induce employees users, suppliers or customers to disclose sensitive information in order to gain access to our data or our customers’ data, including account credentials, customer personnel information, or business partners’ data. Additionally, third parties with whomother information. If we work, such as vendorsfail to have adequate controls or developers, may violate applicable laws or our policies and such violations can place personal informationsafeguards, the security of our customers at risk. Weinternal networks, electronic systems, or our service providersphysical facilities could be unawarecompromised, which could result in significant legal and financial exposure, a loss of an incident or its magnitude and effects until after it is too late to prevent it and the damage it may cause. Further, because the techniques used to obtain unauthorized access to the information systems change frequently, and may not be recognized until launched against a target, we may be unable to anticipate these techniques or to implement adequate preventative measures.
The theft, unauthorized use, or a cybersecurity attack that resultsconfidence in the publicationsecurity of our trade secretsSaaS and other confidential business information as a result of such an incident could negatively affectsoftware products, interruptions, or malfunctions in our competitive position, the value of our investment in product or researchoperations, account lock outs, and, development, and third parties might assert against us or our customers claims relatedultimately, harm to resulting losses of confidential or proprietary information or end-user data and/or system reliability. We carry insurance that provides some protection against the potential losses arising from a cybersecurity incident, but it will not likely cover all such losses, and the losses that it does not cover may be significant. In any such event, our business, could be subject to significant disruption, which could impact our revenues or cause customers to cease doing business with us,financial condition and we could suffer monetary and other losses, including reputational harm, which costs we may not be able to recover from our service providers. Our operations are dependent upon our ability to protect our technology infrastructure against damage from business continuity events that could have a significant disruptive effect on ourresults of operations.
Our technologies could infringe the intellectual property rights of others, causing costly litigation and the loss of significant rights.
Significant litigation regarding intellectual property rights existsinsurance policies may not cover losses incurred in the semiconductor industry. It is possibleevent our systems or data are comprised, and they are subject to retention amounts that a third party may claim that our technologies infringe their intellectual property rights or misappropriate their trade secrets. For example, in late 2020, Ocean Semiconductor LLP (“Ocean”) filed complaints against a number of semiconductor companies in the United States, including a number of our customers, alleging that the importation of IC devices made overseas on a process that, in some cases, included our software, infringed U.S. patents owned by Ocean. Any claim, even if without merit, could be time consumingsubstantial. Moreover, we cannot be certain that such insurance policies will continue to defend, result in costly litigation, or require us to enter into royalty or licensing agreements, which may not be available to us on acceptableeconomically reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim.
If we experience a security event, we may have to conduct an investigation and notify individuals, customers, partners, service providers and state, federal and local governmental authorities and regulators in the U.S. and elsewhere around the globe. Accordingly, security events could adversely affectlead to significant costs and fees for legal advice, investigation support,
