DIRECTV 2005 Annual Report Download - page 30

THE DIRECTV GROUP, INC.
•Other Legal and Regulatory Requirements. DBS/DTH providers are subject to other federal and
state regulatory requirements, such as Federal Trade Commission, FCC and state telemarketing
and advertising rules, and subscriber privacy rules similar to those governing other MVPDs.
DIRECTV U.S. has agreed with the Federal Trade Commission to (a) review and monitor
compliance with telemarketing laws by any companies it authorizes to do telemarketing as well
as by independent retailers, (b) investigate and respond to complaints about alleged improper
telemarketing and (c) terminate its relationship with marketers or retailers found in violation.
Similarly, DIRECTV U.S. has agreed with certain state attorneys general to comply with
advertising disclosure requirements and monitor compliance by independent retailers.
In addition, although Congress has granted the FCC exclusive jurisdiction over the provision of
DTH satellite services, aspects of DBS/DTH service remain regulated at the state and local
level. For example, the FCC has promulgated rules prohibiting restrictions by local government
agencies, such as zoning commissions and private organizations, such as homeowners
associations, on the placement of DBS dish receiving antennas. Local governments and
homeowners associations, however, may continue to regulate the placement of such antennas if
necessary to accomplish a clearly defined public safety objective or to preserve a recognized
historic district, and may also apply to the FCC for a waiver of FCC rules if there are other
local concerns of a special or unusual nature. In addition, a number of state and local
governments have attempted to impose consumer protection, customer service and other types
of regulation on DBS operators. Also, while Congress has prohibited local taxation of the
provision of DBS service, taxation at the state level is permissible, and many states have imposed
such taxes. Incident to conducting a consumer directed business, we occasionally receive
inquiries or complaints from authorities such as state attorneys general and state consumer
protection offices. These matters are generally resolved in the ordinary course of business.
INTELLECTUAL PROPERTY
All DIRECTV Group companies maintain active programs for identifying and protecting our
important intellectual property. With the exception of certain U.S. trademark registrations held by
DIRECTV U.S., we own all of our intellectual property for the benefit of our company and our
subsidiaries.
We believe that our growing portfolio of pending and issued patents are important assets. We
presently hold over 1,500 issued patents worldwide relating to our past and present businesses,
including over 100 patents developed by, or otherwise relating to, the businesses of DIRECTV U.S. We
hold a worldwide portfolio of over 720 registered trademarks, including over 450 foreign registrations
related to the DIRECTV name and the Cyclone Design. In addition, DIRECTV U.S. holds over 73
U.S. and Canadian trademark registrations relating to its business, including registrations of the
primary ‘‘DIRECTV’’ and Cyclone Design trademarks. These trademarks are licensed royalty-free to
third parties for use in support of DIRECTV U.S.’ business. We actively protect our important patents
and trademarks against unauthorized or improper use by third parties.
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, as necessary, capital and other expenditures to comply with
environmental requirements. We do not, however, expect capital or other expenditures for
17