ADT 2009 Annual Report Download - page 100

adopted by each state / fire district and be incorporated into the local building codes in order to be
applied to any new homes being built in that area. The timing of adoption will vary by state / district.
Our Safety Products businesses utilize a worldwide network of sales offices and operate globally
under various trade names, including Scott, Protector, Ansul, Grinnell, Software House, American
Dynamics, DSC and Bentel.
Competition
Competition for the manufacture and sale of our products is based on specialized product capacity,
breadth of product line, price, training and support and delivery. The principal competitors are
specialty products manufacturing companies based in the United States, with other smaller competitors
in Europe and Asia.
Backlog
See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations for information relating to our backlog.
Intellectual Property
Patents, trademarks, copyrights and other proprietary rights are important to our business. We also
rely upon trade secrets, manufacturing know-how, continuing technological innovations and licensing
opportunities to maintain and improve our competitive position. We review third-party proprietary
rights, including trademarks, patents and patent applications, in an effort to develop an effective
intellectual property strategy, avoid infringement of third-party proprietary rights, identify licensing
opportunities and monitor the intellectual property claims of others.
We own a portfolio of patents that principally relates to: electronic security systems; fire detection
systems; fire suppression systems; fire extinguishers and related products; integrated systems for
surveillance and control of public transportation and other public works; fire protection sprinklers and
related systems and products; structural and electrical tubing and conduit; building structural members,
panels and related fixtures; concrete reinforcing products; fire-rated and armored electrical cabling;
heat tracing and floor heating systems; security wire and fencing; and flow control products, including
valves, actuators and controllers and airflow control and sensing products. We also own a portfolio of
trademarks and are a licensee of various patents and trademarks. Patents for individual products extend
for varying periods according to the date of patent filing or grant and the legal term of patents in the
various countries where patent protection is obtained. Trademark rights may potentially extend for
longer periods of time and are dependent upon national laws and use of the marks.
While we consider our patents to be valuable assets, we do not believe that our overall competitive
position is dependent on patent protection or that our overall operations are dependent upon any
single patent or group of related patents.
Research and Development
We are engaged in research and development in an effort to introduce new products, to enhance
the effectiveness, ease of use, safety and reliability of our existing products and to expand the
applications for which the uses of our products are appropriate. We continually evaluate developing
technologies in areas that we believe will enhance our business for possible investment. Our research
and development expense was $118 million in 2009, $127 million in 2008 and $120 million in 2007.
8 2009 Financials