Google Annual Report 2004
`
`EXHIBIT 2055
`Facebook, Inc. et al.
`v.
`Software Rights Archive, LLC
`CASE IPR2013-00480
`
`

`
`GOOGLE WAS BORN IN 1998. If it were a person, it would have started elementary school late last
`summer (around August 19), and today it would have just about fi nished the fi rst grade.
`
`Of course companies are not people. Among other obvious differences, they must be responsible and self-
`suffi cient at a very early age. But a long perspective, like that of a human lifespan, is useful in assessing year-
`by-year developments. While it may seem that we have come far already, this is just the beginning of a lifetime.
`
`And while Google is not a single person, it does embody the effort, ability, and commitment of thousands of
`individuals. Together we strive toward a common mission: to organize the world’s information and make it
`universally accessible and useful. This is an infi nitely large task for a long-term company.
`
`Last year, Larry discussed the principles of our work toward this goal in his letter that we included in the
`prospectus for our initial public offering. In this letter, I will update you on our progress over the past year,
`our team, and where we are headed in the future.
`
`345 DAYS
`
`It is hard to believe less than a year has passed since our last letter, given how much has happened. We made
`some big strides toward making more web information nearly instantly available. But just as important, we
`branched out to make a growing array of media forms and information types more accessible and, hopefully,
`more useful to people all around the world.
`
`Here are some of the highlights:
`
`8 billion pages. In web search alone, we doubled the size of our index over the past year. Now, users can
`search more than 8 billion web pages and experience greater relevance. We have simultaneously worked to
`ensure that users encounter less spam or other interference.
`
`More local information:
`
`Google Maps. Released early this year, Google Maps is an original interface to maps on the web, letting people
`plot routes, get directions, and fi nd businesses on a map intuitively and in a fl ash.
`
`Keyhole. Our acquisition of this geographic information search pioneer brings to Google users a stunning
`digital mapping tool. Keyhole lets people view 3D images of any place on Earth, including a rich database of
`roads, businesses and many other points of interest.
`
`Google SMS. Often when people need information they’re not at a desktop computer. But they can use their
`mobile phone to send a text message query to GOOGL (46645) to get local, weather, and other results.
`
`But not all information that matters to people is on the web. Much of it resides in different media – in books,
`on television, or on their hard drives. So we launched projects addressing each:
`
`Google Print. Announced late last year, Google Print seeks to digitize and make searchable the wealth of the
`world’s knowledge that is in the form of books. We have programs to work with both publishers and libraries
`
`Ads by Google
`
`Learn to Invest Wisely
`Mutual fund & stock courses
`Visit our upcoming seminar schedule
`www.fi nanciallysavvy.com
`
`Digital Mapping & Imaging
`Cutting edge technology services
`Topographic mapping, ortho images
`www.cooperaerial.com
`
`Library Automation System
`Alexandria library automation
`software used by 1000s of libraries
`www.goalexandria.com
`
`

`
`to digitize their collections, including those at Stanford, Harvard, Oxford, the University of Michigan, and
`the New York Public Library.
`
`Google Scholar. This service applies the power of link and citation analysis to scholarly research. With
`Google Scholar, researchers, students, professors, and others can fi nd relevant information drawn from
`literature such as peer-reviewed papers, theses, books, preprints, abstracts, and technical reports.
`
`Google Video. The preview release of Google Video demonstrated how searching television can work: People
`can search the content of TV programs, fi nd programs containing the content they’re looking for, and
`discover where and when the program next airs.
`
`Google Desktop Search. Why should it be easier to search the web than it is to search for the information
`on your own hard drive? Google Desktop Search lets people search their own computer for fi les, MP3s, web
`history, and more, just as easily as they can search on Google.
`
`Online communications have become pervasive in people’s lives – so pervasive, in fact, that people often
`don’t even think of it as information. As a result, we’ve begun developing
`products that improve the ways people can talk to each other – and share
`ideas and experiences – online.
`
`Gmail. I am writing this document using Gmail, our innovative web mail
`service. It provides people with a huge amount of storage (1 gigabyte per
`account, free) and fast, Google-style search through their mail.
`
`Picasa. With the acquisition of Picasa, we can help people manage their
`visual information in digital photographs. We released a much improved
`version of Picasa, and with Gmail integration, have started the work of
`making it easy for people to share photographs with family and friends.
`
`Blogger. Blogging is about personal expression and the freedom to
`share ideas. This year we completely redesigned Blogger and introduced
`powerful features like comments and rich-text editing. In doing so,
`we’ve made it quicker and easier than ever for people to share their
`thoughts online.
`
`People can now use Google
`SMS to get local information
`on their mobile phones.
`
`We also launched a number of improvements to our AdWords and AdSense programs to make it easier
`and more rewarding for both advertisers and publishers to participate in the increasing use of commercial
`information online. Notably, we have focused on improving our ads quality, which increases ads relevance
`for users, and clickthrough rates for our advertisers and publishers.
`
`Highlights for advertisers included:
`
`• Smart pricing, which automatically adjusts the price paid for clicks from the Google content network based
`on our estimates of the value of the clicks.
`
`Precis Abstract Mgmt
`Online Abstract Management for
`collecting abstracts and papers
`www.preciscentral.com
`
`Stanford Univ. Photos
`Postcards, Note cards, Posters, and
`Prints of Stanford University
`www.JoelSimonImages.com
`
`PPC Management Firms
`Powerful & convenient comparison
`site to select the best PPC Firms.
`WebsiteZone.com
`
`

`
`• Image ads, which enable advertisers to use graphical ad formats, instead of simply plain text, on Google’s
` content network.
`
`• AdWords API and a collection of campaign management tools, which make it simpler and more effi cient
`
`for advertisers and third parties to track and modify their ad campaigns.
`
`Highlights for publishers include:
`
`• The expansion of AdSense for content (in which we serve AdWords ads targeted to content on a publisher’s
` site) to 10 new languages.
`
`• The launch of AdSense for search (in which publishers can sign up online and offer Google search and
` related advertising on their site) in 21 new languages.
`
`• New ad formats and improved reporting tools which give publishers greater monetization opportunities and
` more precise tracking.
`
`We also made it affordable for organizations of any size to provide search as good as Google across their public
`websites and intranets. In 2005, we launched the Google Mini search appliance, which embeds Google search
`technology on a hardware platform.
`
`70-20-10
`
`Noting the number and range of these new offerings, some observers have wondered whether Google should
`focus more on its core – web search – because distractions from non-core services have previously led search
`engine companies astray. Others have asserted that we are a “one-trick pony,” too reliant on web search, and
`that we need to diversify.
`
`Let me clarify our strategy in this regard: We have decided that we need balance among core and expanded
`services. Larry and I use a rule called 70-20-10. Seventy percent of our effort goes to our core: our web search
`engine and our advertising network. These products still are the largest contributors to the fi nancial health of
`the company. {Comscore Media Metrix (October 2004) reports that our advertising network, which includes
`thousands of content sites, sites that use Google search, and Google properties, reaches 80% of Internet users.}
`But incremental resources have diminishing returns in almost any undertaking, so it is not desirable to put
`all your resources on the core product. That’s why we allocate 20 percent for adjacent areas such as Gmail
`and Google Desktop Search. The remaining 10 percent is saved for anything else, giving us the freedom to
`innovate. This is the logic behind our weighted balance.
`
`Larry, Eric, and I are proud to be at a company which delivers new products so quickly – and at such a high
`quality. But we’re even more proud that so many people tell us that these products improve their lives.
`
`Note: The ads at the bottom of these pages demonstrate examples of how Google can extend the notion of serving
`relevant ads based on the context of what people are reading. Woven into numerous Google offerings, these ads
`support innovation and content creation within Google and across the web.
`
`Ads by Google
`
`Product Planning Database
`Strategic Roadmapping software for
`improved product planning
`www.alignent.com
`
`Strategy and Operations
`We develop customer-driven
`strategies for large tech companies
`www.sacerdote-co.com
`
`Resource Allocation
`Coordinate Goals, Projects & Tasks
`Goal-based Mgmt Software – $450
`www.PerformanceSolutionsTech.com
`
`

`
`< OPEN HERE
`
`THE TEAM THAT BUILT IT
`
`Since we started Google, Larry and I have cared deeply about the people we hire and how we
`can fi nd and attract the most qualifi ed applicants. We then strive to empower and reward our
`employees from their fi rst day at Google.
`
`And those fi rst days can be in many places. We have offi ces in 12 countries, and we’ve also begun building
`out research and development centers in Zurich, Bangalore, and Tokyo. To date, we have built a great team,
`growing from 2,000 to more than 3,000 in the past year alone.
`
`In this process, we have been careful to avoid hiring people who would not be good contributors at Google
`– the ‘false positives.’ But we have paid less attention to avoiding ‘false negatives.’ Perhaps we have focused
`too sharply on certain technical skills. I am sure there have been many people who would have excelled at
`Google, but whom we failed to hire.
`
`As we continue to grow and start to saturate certain specialties within geographic areas where we are based,
`we will redouble our efforts to identify and hire the most qualifi ed
`candidates. Choosing the best people is a fundamental challenge for
`every company, but it is not a proven science. Nonetheless, we are
`committed to making Google a natural home for a diverse group of the
`most talented people in our industry, and we’ll continue to work toward
`that goal.
`
`We believe we have created a work environment that attracts
`exceptional people. We know that people value meaning in their work;
`they want to be involved with things that are important and that are
`going to make a difference. That is what we let them do at Google.
`We give them autonomy by structuring projects around small teams.
`Our huge computational resources and business resources allow those
`teams to build great products and also empower individuals to create
`and test their own ideas.
`
`Google employees have “20 percent time” – effectively one day per
`week – in which they are free to pursue projects they are passionate
`about and think will benefi t Google. The results of this creative effort already include products such as
`Google News, Google Suggest, and Orkut – products which might otherwise have taken an entire start-up
`company to create and launch.
`
`Our recruitment campaign
`asked candidates to solve tough
`mathematical problems.
`
`We have never forgotten since our start-up days that great things happen more frequently within the right
`culture and environment. So we offer Googlers a generous host of benefi ts – such as an on-site doctor and
`two fresh meals a day – as part of our efforts to keep Google a motivating, healthy, and productive place.
`
`Manpower
`Total HR solutions
`Complete Business Resource Center
`www.us.manpower.com/brc
`
`The New War For Talent
`Innovative talent strategies.
`Creative rewards programs.
`www.deloitte.com/us/talent
`
`Jobs at TechJobsCafe
`Find 100’s of programming, Java,
`C++ job openings at TechJobsCafe
`www.Techjobscafe.Com
`
`

`
`3/15/2005 8:40:18 PM
`3/15/2005 8:40:18 PM
`
`52370 5-8.indd 1
`52370 5-8.indd 1
`
`20% time.
`our engineer’s
`during one of
`conceived
`world –
`around the
`search queries
`of Google
`representation
`A graphical
`
`(At least they’re not on our website)
`
` Pop-up ads.
`
`

`
`
`
` Compensation that rewards contribution
`
`It’s also why we are committed to rewarding employees fairly, commensurate with their
`contribution. We have instituted a number of incentives throughout the years, such as encouraging
`
`peers to recommend each other for company bonuses. But as we have grown into a larger, public
`
`company, we have recognized that our compensation system must evolve. Beyond simply addressing the
`accounting treatment of options and other equity incentives, it must ensure that compensation is fair, offers
`good performance incentive, and facilitates hiring and retention.
`
`We believe strongly in being generous with our greatest contributors. In too many companies, people who
`do great things are not justly rewarded.1 Sometimes, this is because profi t-sharing is so broad that any one
`person’s reward gets averaged out with the rewards of everyone else. Other times, it’s because contributions
`are simply not recognized. But we intend to be different. That is why we developed the Founders’ Award
`program over the past quarter.
`
`The Founders’ Award is designed to give extraordinary rewards for extraordinary team accomplishments.
`While there’s no single yardstick for measuring achievement, a general rule of thumb is that the team
`accomplished something that created tremendous value for Google. The awards pay out in the form of
`Google Stock Units (GSUs) that vest over time.2 Team members receive awards based on their level of
`involvement and contribution, and the largest awards to individuals can reach several million dollars.
`
`To date, Larry and I have given out two such awards for a total of about $12 million. We are currently
`planning to make two to three additional awards of similar size for recent work. Like a small start-up, Google
`will provide substantial upside to our employees based on their accomplishments. But unlike a start-up, we
`provide a platform and an opportunity to make those accomplishments much more likely to occur.
`
`Extraordinary contributions are not the only area where our compensation practices have evolved. We have
`also put in place a new long-term incentive program to complement our traditional stock option plan. We
`believe that our previous compensation practices could expose new hires to market volatility that is not
`related to their individual performance or contribution. Under our revised program, newly hired employees
`will still receive some traditional-style stock options. But a signifi cant component of their hiring grant will
`come in the form of GSUs.2 The actual number of GSUs any employee receives in any year is adjusted, based
`on the individual performance of the employee and on their option strike price relative to other employees
`who started at about the same time. We believe this approach accomplishes two important goals: it signifi cantly
`
`1 Often noted is the case of Shuji Nakamura. The inventor of the blue LED received a bonus of around $200, while his
`company retained rights to the patent. Last year, he reached a legal settlement with his employer for $8 million.
`
`2 A Google Stock Unit (GSU) is a contractual promise made by the company to an employee to issue a specifi c number
`of shares to that employee at some future date, after they are vested. Unlike an option, which gives an employee the right
`to purchase a share at a given time for a set price, GSUs are already shares.
`
`Ads by Google
`
`PlayTime Inc.
`Innovative Corporate Team Building
`High-Tech Treasure Hunts with GPS
`www.playtimeinc.com
`
`Employee Incentives
`Incentive Solutions to Motivate
`& Drive your Team & Channel
`www.salesdriver.com
`
`ESOP Solutions
`Is an Employee Stock Ownership Plan
`a good choice for your company?
`www.bipc.com
`
`

`
`reduces distortions based on the volatility of the initial strike price, and it provides a better incentive by
`more directly tying reward to performance.
`
`Look for us to continue exploring novel ideas in benefi ts, compensation, and culture. Our goal is to build a
`company characterized not only by success and innovation, but also by the highest levels of integrity and
`fairness in our dealings with one another.
`
`OUR HOMEWORK
`
`Next year, Larry and I hope to report as much progress as we have had over the past year. Here are some of
`the areas in which we hope to advance:
`
`More information: Currently, our index covers only a fraction of the world’s information, and new
`information is being created at an extraordinary pace every day.3 We aim to greatly expand the scope of
`what’s searchable, making more and different types of information readily accessible.
`
`More mature products: Many of our latest products are in various test stages. In the coming year, we expect
`to see them develop further, graduate from Google Labs, and move from beta into more general availability.
`
`The W-W in WWW
`
`Google has always been a globally-available service, by virtue of the nature of the Internet. And today, we
`strive to be a globally-useful service and a truly global company. Google search is available in more than 100
`interface languages on 112 international domains. We offer 41 different language interfaces for our AdWords
`product, and 21 for AdSense. We have offi ces in 12 countries.
`
`But we have far to go. We need to make more of our products and services, not just Google’s core search
`and ad products, available in more countries and languages. We need to fi gure out how to overcome certain
`technological challenges: for example, it’s hard to offer a useful map product in countries where many places
`remain essentially unmapped. This is even harder in countries where many people do not have access to
`computers.
`
`Google.org
`
`We are aware of the challenges that are even more fundamental, such as: how to help people access water,
`clothing, and shelter, let alone information. In a direct sense, such challenges are beyond the reach of even
`the most ambitious information-technology company. But our actions in areas of our competence and
`expertise are guided by an awareness of how much needs to be done to create opportunities for people in all
`countries of the world.
`
`3 “How Much Information is There?” by Peter Lyman and Hal Varian, 2003.
`http://www.sims.berkeley.edu/research/projects/how-much-info-2003/
`
`Reward Your Employees
`Recognition/Incentive Rewards
`1000s of Gift Certifi cates and more
`www.incentone.com
`
`PASSOLO
`Makes Your Software Ready
`For The Global Market
`www.passolo.com
`
`Nonprofi t Organizations
`Database with 1000s of listings
`Find some to match your interests!
`www.takingitglobal.org
`
`

`
`In last year’s Founder’s Letter, we made a commitment to set up a non-profi t arm, called the Google
`Foundation, which we hope to be a lasting symbol of Google’s values. As we said then, we hope that
`someday this institution will eclipse Google itself in overall world impact by ambitiously applying innovation
`and signifi cant resources to the largest of the world’s problems. We are grateful to have had the opportunity
`in the past year to brainstorm with some of the world’s most dedicated and talented philanthropists and
`social entrepreneurs. We realize that the resources we have in mind, while large for a corporate foundation,
`are nonetheless small compared with offerings from governments and many non-governmental organizations
`
`
`(NGOs). This only increases our determination to fi nd original ways
`
`
`to extend our assets, so that we can drive scalable, sustainable efforts.
`
`
`We have always been good at using our resources creatively; Larry
`
`
`and I started Google using LegoTM blocks. Thankfully, we now have
`
`
`more to offer, but the underlying principle is the same: Never stop
`
`
`looking for ways to do the best with what you have.
`
`As a result, we believe we need to go beyond the traditional defi nition
`of a foundation and combine a variety of approaches – investing in
`socially progressive companies, making targeted philanthropic
`donations, infl uencing public policy, and more. We have therefore
`chosen to change the Google Foundation name and adopt the broader
`name Google.org. We are currently working on staffi ng as well as
`defi ning the goals, priorities, and principles of Google.org. We hope
`to have a lot more to share with you on this front by next year.
`
`We built our fi rst disk array
` out of Lego blocks.
`In the past year, we’ve learned a lot about how to run a company like
`
`
`Google, how to attract the best people, and how to arrange our efforts for the best result.
`
`But all credit, of course, goes to our fellow Googlers. Throughout a year full of potential distractions, you
`demonstrated unwavering focus on the work at hand, dedication to our mission, and often soaring vision.
`We are honored to work with you.
`
`********
`
`If Google were a person, it would graduate from high school in 2016. Given a typical life span, it would
`expect to be around for almost a century – or more, thanks to continual innovations in healthcare technology.
`Today, it would only have seen a glimmer of its full potential.
`
`We’re just getting started.
`
`
`
`
`
`
`
`
`
`
`
`Sergey Brin
`
`
`
`Larry Page
`
`Ads by Google
`
`Nonprofi t Web Solutions
`Easy to use giving tools will boost
`donations and empower your mission
`www.kintera.com
`
`Nonprofi t Resource Portal
`Helping To Start & Grow Charities
`Consulting, Fundraising, 501c3.
`www.citylinks.org
`
`TechSoup for Nonprofi ts
`Get charitable software donations
`for your nonprofi t or charity.
`www.techsoup.org/stock
`
`

`
`UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`Washington, D.C. 20549
`FORM 10-K
`
`(Mark One)
`È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
`EXCHANGE ACT OF 1934
`For the fiscal year ended December 31, 2004
`OR
`‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
`EXCHANGE ACT OF 1934
`
`Commission file number: 000-50726
`
`Google Inc.
`
`(Exact name of registrant as specified in its charter)
`
`Delaware
`(State or other jurisdiction of
`incorporation or organization)
`
`77-0493581
`(I.R.S. Employer
`Identification Number)
`
`1600 Amphitheatre Parkway
`Mountain View, CA 94043
`(Address of principal executive offices)
`(650) 623-4000
`(Registrant’s telephone number, including area code)
`
`Securities registered pursuant to Section 12(b) of the Act:
`None
`Securities registered pursuant to Section 12(g) of the Act:
`Class A Common Stock, $0.001 par value
`Class B Common Stock, $0.001 par value
`(Title of class)
`Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or
`15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that
`the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
`90 days. Yes È No ‘
`Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not
`contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or
`information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form
`10-K. ‘
`Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the
`Act.) Yes ‘ No È
`At December 31, 2004, the last business day of the Registrant’s most recently completed fiscal quarter,
`there were 95,542,010 shares of Registrant’s Class A common stock and 178,980,030 shares of Registrant’s Class
`B common stock outstanding, and the aggregate market value of such shares held by non-affiliates of the
`Registrant (based upon the closing sale price of such shares on The Nasdaq National Market on December 31,
`2004) was approximately $27,286,463,824. Shares of Registrant’s Class A common stock and Class B common
`stock held by each executive officer and director and by each entity or person that, to the Registrant’s
`knowledge, owned 5% or more of Registrant’s outstanding common stock as of December 31, 2004 have been
`excluded in that such persons may be deemed to be affiliates of the Registrant. This determination of affiliate
`status is not necessarily a conclusive determination for other purposes.
`At March 28, 2005, there were 114,754,458 shares of Registrant’s Class A common stock outstanding and
`162,594,769 shares of Registrant’s Class B common stock outstanding.
`
`DOCUMENTS INCORPORATED BY REFERENCE
`Portions of the registrant’s Proxy Statement for the 2005 Annual Meeting of Stockholders are incorporated
`herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein.
`
`

`
`Form 10-K
`For the Fiscal Year Ended December 31, 2004
`INDEX
`
`TABLE OF CONTENTS
`
`PART I
`Item 1.
`
`Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Executive Officers of the Registrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Submission of Matters to a Vote of Security Holders
`. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`
`Item 2.
`Item 3.
`Item 4.
`PART II
`Market for The Registrant’s Common Equity and Related Stockholder Matters . . . . . . . . . . . .
`Item 5.
`Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Item 6.
`Management’s Discussion and Analysis of Financial Condition and Results of Operations
`. . .
`Item 7.
`Item 7A. Quantitative and Qualitative Disclosures About Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . .
`Item 8.
`Financial Statements and Supplementary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Item 9.
`Changes in and Disagreements with Accountants on Accounting and Financial Disclosure . .
`Item 9A. Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Item 9B
`Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`PART III
`Item 10.
`Item 11.
`Item 12.
`Item 13.
`Item 14.
`PART IV
`Item 15.
`
`Directors and Executive Officers of the Registrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Security Ownership of Certain Beneficial Owners and Management . . . . . . . . . . . . . . . . . . . . .
`Certain Relationships and Related Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
`Principal Accounting Fees and Services
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`i
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`PART I
`
`ITEM 1. BUSINESS
`Overview
`Google is a global technology leader focused on improving the ways people connect with information. Our
`innovations in web search and advertising have made our web site a top Internet destination and our brand one
`of the most recognized in the world. We maintain the world’s largest online index of web sites and other
`content, and we make this information freely available to anyone with an Internet connection. Our automated
`search technology helps people obtain nearly instant access to relevant information from our vast online index.
`
`We generate revenue by delivering relevant, cost-effective online advertising. Businesses use our AdWords
`program to promote their products and services with targeted advertising. In addition, the thousands of third-
`party web sites that comprise our Google Network use our Google AdSense program to deliver relevant ads that
`generate revenue and enhance the user experience.
`
`Our Mission
`Our mission is to organize the world’s information and make it universally accessible and useful. We believe
`that the most effective, and ultimately the most profitable, way to accomplish our mission is to put the needs of
`our users first. We have found that offering a high-quality user experience leads to increased traffic and strong
`word-of-mouth promotion. Our dedication to putting users first is reflected in three key commitments we have
`made to our users:
`• We will do our best to provide the most relevant and useful search results possible, independent of
`financial incentives. Our search results will be objective and we will not accept payment for inclusion
`or ranking in them.
`• We will do our best to provide the most relevant and useful advertising. If any element on a result page
`is influenced by payment to us, we will make it clear to our users. Advertisements should not be an
`annoying interruption.
`• We will never stop working to improve our user experience, our search technology and other important
`areas of information organization.
`
`We believe that our user focus is the foundation of our success to date. We also believe that this focus is
`critical for the creation of long-term value. We do not intend to compromise our user focus for short-term
`economic gain.
`
`How We Provide Value to Users, Advertisers and Web Sites
`Our Users
`We serve our users by developing products that enable people to more quickly and easily find, create and
`organize information. We place a premium on products that matter to many people and have the potential to
`improve their lives, especially in areas in which our expertise enables us to excel.
`
`Search is one such area. People use search frequently and the results are often of great importance to them.
`For example, people search for information on medical conditions, purchase decisions, technical questions,
`long-lost friends and other topics about which they care a great deal. Delivering quality search results requires
`significant computing power, advanced software and complex processes—areas in which we have expertise and a
`high level of focus.
`
`Communication is another such area. People increasingly rely on the Internet to communicate with each
`other. Gmail, our new email service (available in a limited test), offers a gigabyte of free storage for each user,
`along with email search capabilities and relevant advertising. Delivering an improved user experience in Gmail
`has similar computing and software requirements as our search service.
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`1
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`Some of the key benefits we offer to users include:
`
`Relevant and Useful Information. Our technologies sort through a vast and growing amount of information to
`deliver relevant and useful search results in response to user queries. This is an area of continual development
`for us. When we started the company six years ago, our web index contained approximately 30 million
`documents. We now index more than 8 billion web pages, or more than 250 times as much information. We are
`also constantly developing new functionality. We’ve made recent enhancements to our local search offering,
`which now includes Google Maps and we’ve also enhanced Google Desktop Search, which now supports
`additional
`file formats and browser and email clients. In addition, we also provide convenient links to
`specialized information, such as weather and movie information.
`
`Objectivity. We believe it is very important that the results users get from Google are produced with only
`their interests in mind. We do not accept money for search result ranking or inclusion. We do accept fees for
`advertising, but it does not influence how we generate our search results. The adve