ADT 2011 Annual Report Download - page 110

and products in most geographic regions directly through its internal sales force and in some cases
through a network of independent distributors and manufacturers’ representatives.
Customers
Tyco Flow Control’s customers include businesses engaged in a wide range of industries, including
power generation, chemical and petrochemical, pharmaceutical, oil and gas exploration, production and
refining, mining, water, food and beverage, marine and shipbuilding and other process industries.
Customers include end users as well as engineering, procurement and construction companies,
contractors, original equipment manufacturers and distributors. Tyco Flow Control operates an
extensive network of sales, service and distribution centers to serve a wide range of global customers.
Competition
The flow control industry is highly fragmented, consisting of many local and regional companies
and a few global competitors. We compete against a number of international, national and local
manufacturers of industrial valves as well as against specialized manufacturers on the basis of product
capability, product quality, breadth of product line, delivery, service capability and price. Our major
competitors vary by region.
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 misappropriation of our proprietary rights, and monitor the intellectual property
claims of others.
We own a portfolio of patents that principally relates to: electronic security systems; fire protection
products and systems, including fire detection and fire suppression with chemical, gas, foam and water
agents, piping, couplings, fittings for fluid systems; personal protective products and systems for fire and
other hazards; integrated systems for surveillance and control of public transportation and other public
works; heat tracing and floor heating systems; 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
2011 Financials 7