DIRECTV 2008 Annual Report Download - page 34

THE DIRECTV GROUP, INC.
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 and various
intellectual property licensed from third parties, 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 1,850 issued patents worldwide relating to our past and present businesses,
including over 350 patents developed by, or otherwise relating to, the businesses of DIRECTV U.S. We
hold a worldwide portfolio of over 1,100 registered trademarks in over 140 countries related to the
DIRECTV name and the Cyclone Design. In addition, DIRECTV U.S. holds 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 the
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 universal and hazardous
waste management activities. We have an environmental management function designed to track,
facilitate and support our compliance with these requirements and attempt to maintain 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 environmental compliance to be material in 2009. In addition, we periodically review
environmental stewardship concepts (such as green initiatives and energy conservation strategies) and
implement these whenever feasible. 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.
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