Casio 2009 Annual Report Download - page 24

22 CASIO COMPUTER CO., LTD.
8) Intellectual property
The Group principally uses proprietary technologies, and protects these proprietary technologies through a combina-
tion of patents, registered trade marks and other intellectual property. The following is a list of accompanying risks.
• Competitors might develop the same technologies as the Group’s own proprietary technologies
• Denial of approval for a pending patent submitted by a Group member
• Ineffectiveness of measures aimed at preventing the misuse or violation of intellectual property rights held by
a Group member
• Legislation relating to intellectual property might not provide adequate protection for the Group’s intellectual
property
• The Group’s future products and technologies might constitute a violation of another company’s intellectual
property rights
9) Defective products and lawsuits
As a manufacturer and marketer of consumer products, we ensure strict quality control for our products. To date,
we have never been subject to a damaging claim and have never had our reputation endangered. Even so, it is
impossible to ensure that claims regarding product liability and product safety will not be brought against Casio
Group members in the future.
10) Risks related to information management
The Casio Group maintains personal information and confidential business information relating to the promotion
and development of its business operations. There are in-house rules governing the use of this information, and each
Group company raises awareness of the need for strict control of such information in its employee training program.
However, there is always the possibility that information may be leaked, and such a leak of information might have
a negative impact on the Group’s business, financial position and earnings performance.
11) Alliances, mergers and strategic investments
The Casio Group may engage in alliances and mergers, or undertake strategic investments, in Japan or overseas to
expand its business operations or raise the efficiency of management. Changes in the business partner’s manage-
ment environment, business strategies, or operating environment might have a negative impact on the Casio
Group’s business, financial position and earnings performance.
12) Risks arising from fluctuations in foreign exchange rates and interest rates
The Casio Group maintains operations in numerous countries around the world. Consequently, the Group is
substantially affected by exchange rate fluctuations. The Group’s gross profit might be negatively affected as a result
of movements in foreign currencies against the yen. Moreover, the Group is exposed to risk associated with interest
rate changes. These risks could have an impact on overall operating costs, procurement costs, value of monetary
assets and liabilities (particularly long-term liabilities).
13) Other risks
The following other factors might have an impact on the Group’s business operations in the future.
• Cyclical trends in the IT sector
• Uncertainties as to whether the required equipment, raw materials, facilities, and electricity can be procured at an
appropriate price
• A decline in the value of securities held by the Group
• Revisions to laws and regulations regarding the accounting standards for retirement benefits and rapid changes in
pension fund operations
• Damage caused by fires, earthquakes and other natural disasters, as well as other accidents that disrupt operations
• Social unrest caused by wars, terrorist attacks, and epidemics
Business Risks