DIRECTV 2003 Annual Report Download - page 23

THE DIRECTV GROUP, INC.
the use of the frequencies on our satellites with other satellite operators who may interfere with us or who may
suffer interference from us. We may also be subject to national communications and/or broadcasting laws with
respect to our provision of international satellite service.
RESEARCH AND INTELLECTUAL PROPERTY
The ability to continue to generate technological innovations either internally or in relationships with third-
party suppliers is important to our long-term business strategy. The continued development of new technologies,
particularly as they relate to the DIRECTV service, including innovations in DVR capability, interactive
applications and HDTV, may provide new and improved products that will continue to fuel business
opportunities. Research and development is carried on in each of our business units in connection with ongoing
product improvement efforts. Expenditures for research and development were $57.7 million in 2003,
$71.7 million in 2002 and $85.8 million in 2001.
We utilize a large number of patents and trademarks, which are held by the Company or our subsidiaries.
We believe that, in the aggregate, the rights existing under such patents, trademarks and licenses are important.
Our portfolio of DIRECTV trademarks and other intellectual property is an integral part of our business.
DIRECTV holds over 75 U.S. and foreign trademark registrations, including registration of its primary
DIRECTV trademark and the Cyclone Design logo. We actively pursue patent and trademark protections of our
technological and engineering innovations and actively pursue enforcement of our intellectual property rights.
ENVIRONMENTAL REGULATION
We are subject to the requirements of federal, state, local and foreign environmental laws and regulations.
These include laws regulating air emissions, water discharge and waste management. We have an environmental
management structure designed to facilitate and support our compliance with these requirements and attempts to
maintain complete compliance with all such requirements. We have made and will continue to make capital and
other expenditures to comply with environmental requirements. We do not, however, expect capital or other
expenditures for environmental compliance to be material in 2004 and 2005. Environmental requirements are
complex, change frequently and have become more stringent over time. Accordingly, we cannot provide
assurance that these requirements will not change or become more stringent in the future in a manner that could
have a material adverse effect on our business.
We are also subject to environmental laws requiring the investigation and cleanup of environmental
contamination at facilities we formerly owned or operated or currently own or operate or to which we sent
hazardous wastes for treatment or disposal. We are aware of contamination at one of our former sites. We believe
that we have adequately provided for the expected cost of environmental investigation and cleanup.
SEGMENT REPORTING DATA
Operating segment and principal geographic area data for 2003, 2002 and 2001 are summarized in Note 19
of the Notes to the Consolidated Financial Statements in Part II and are incorporated herein by reference.
EMPLOYEES
As of December 31, 2003, the Company and our subsidiaries had approximately 12,300 employees. We
believe that our employee relations are good. None of our employees are represented by labor unions.
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