2010 10-K: Part I We could be subject to fines, penalties, or other sanctions as a result of an investigation by the New York Attorney  General’s Office related to some of the services Morningstar  Associates, LLC provides. Failure to protect our intellectual property rights could harm our  brand-building efforts and ability to compete effectively. The steps we have taken to protect our intellectual property may  not be adequate to safeguard our proprietary information. Further,  effective trademark, copyright, and trade secret protection may not  be available in every country in which we offer our services. Our  continued ability to market one or more of our products under their  current names could be adversely affected in those jurisdictions  where another person registers, or has a pre-existing registration  on one or more of them. Failure to adequately protect our intel- lectual property could harm our brand, devalue our proprietary  content, and affect our ability to compete in the marketplace. From time to time, we encounter jurisdictions in which one or more  third parties have a pre-existing trademark registration in certain  relevant international classes that may prevent us from registering  our own marks in those jurisdictions. It is possible that our contin- ued ability to use the “Morningstar” name or logo, either on a  stand-alone basis or in association with certain products or services,  could be compromised in those jurisdictions because of these pre- existing registrations. Similarly, from time to time, we encounter  situations in certain jurisdictions where one or more third parties  are already using the Morningstar name, either as part of a registered  corporate name, a registered domain name or otherwise. Our abil- ity to effectively market certain products and/or services in those  locations could be adversely affected by these pre-existing usages. Control by a principal shareholder could adversely affect our  other shareholders. Our future success depends on our ability to recruit and retain  qualified employees. As we originally disclosed in 2004, the New York Attorney General’s  Office is conducting an investigation related to some of the products  and services offered by Morningstar Associates, LLC. See Item  3—Legal Proceedings for a description of these matters. We cannot  predict the scope, timing, or outcome of these matters, which may  include the institution of administrative, civil, injunctive, or criminal  proceedings, the imposition of fines and penalties, and other rem- edies and sanctions, any of which could lead to an adverse impact  on our stock price, the inability to attract or retain key employees,  and the loss of customers. We also cannot predict what impact, if  any, these matters may have on our business, operating results, or  financial condition. We have not established any reserves relating  to these matters. Our future success also depends on the continued service of our  executive officers, including Joe Mansueto, our chairman, chief  executive officer, and controlling shareholder. Joe is heavily involved  in our day-to-day operations, business strategy, and overall company  direction. The loss of Joe or other executive officers could hurt our  business, operating results, or financial condition. We do not have  employment agreements, non-compete agreements, or life insurance  policies in place with any of our executive officers. They may leave  us and work for our competitors or start their own competing businesses. As of December 31, 2010, Joe Mansueto, our chairman and chief  executive officer, owned approximately 50% of our outstanding  common stock. As a result, he has the ability to control substantially  all matters submitted to our shareholders for approval, including  the election and removal of directors and any merger, consolidation,  or sale of our assets. He also has the ability to control our manage- ment and affairs. This concentration of ownership may delay or  prevent a change in control; impede a merger, consolidation, take- over, or other business combination involving us; discourage a  potential acquirer from making a tender offer or otherwise attempt- ing to obtain control of us; or result in actions that may be opposed  by other shareholders. 52 We experience competition for analysts and other employees from  financial institutions and financial services organizations. These  organizations generally have greater resources than we do and  therefore may be able to offer significantly more attractive com- pensation packages to potential employees. Competition for these  employees is intense, and we may not be able to retain our existing  employees or be able to recruit and retain other highly qualified  personnel in the future.