Casio 2014 Annual Report Download - page 18

8) Intellectual property
The Group principally uses proprietary technologies, and protects these proprietary technologies
through a combination of patents, registered trademarks 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฀prop-
erty 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฀com-
pany’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 Group members in the future.
10) Risks related to information management
The 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 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 management environment, business strategies, or operating environment might
have a negative impact on the Group’s business, financial position and earnings performance.
12) Risks arising from fluctuations in foreign exchange rates and interest rates
The 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 risks 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฀benets฀
and rapid changes in pension fund operations
•฀฀฀Damage฀caused฀by฀res,฀earthquakes฀and฀other฀natural฀disasters,฀as฀well฀as฀other฀accidents฀
that disrupt operations
•฀Social฀unrest฀caused฀by฀wars,฀terrorist฀attacks,฀and฀epidemics
Profile / Contents CASIO’s StrengthHistory To Our Stakeholders At a Glance Special Feature CSRCorporate Governance
PAGE 17
Move back to
previous page
Move forward to
next page
Search
Print
Corporate DataFinancial Section