DIRECTV 2007 Annual Report Download - page 28

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. We
have agreed with the Federal Trade Commission to (1) review and monitor compliance with
telemarketing laws by any companies we authorize to do telemarketing as well as by independent
retailers, (2) investigate and respond to complaints about alleged improper telemarketing and
(3) terminate our relationship with marketers or retailers found in violation. Similarly, we have
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 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.
In Latin America, DTVLA and its subsidiaries are subject to laws and regulations in each
country in which they operate that govern many of the same aspects of our operations as in the
United States, such as landing rights for satellites; spectrum, earth station and other licenses;
must carry and other requirements with respect to the channels we carry; regulations governing
telemarketing and customer service, etc. Regulatory regimes in Latin America are generally less
developed than in the United States, as a result of which the application of existing laws and
regulations to DBS providers is at times uncertain. In addition, there are certain areas where
regulations in Latin America are stricter than in the United States, such as regarding labor and
consumer protection laws. Foreign exchange laws in some countries can have a material impact
on our ability to repatriate funds to the United States. Also, recently in several countries such as
Brazil there have been proposed laws that would require us to carry certain thresholds of
domestic or ‘‘national’’ content which, if approved, could have a material impact on our
subsidiaries operating in those countries.
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., Sky Mexico and Sky Brazil pursuant to trademark license agreements, The DIRECTV
Group owns 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 1,650 issued patents worldwide relating to our past and present businesses,
including over 250 patents developed by, or otherwise relating to, the businesses of DIRECTV U.S. We
hold a worldwide portfolio of over 710 registered trademarks, including over 465 foreign registrations
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