Danaher 2009 Annual Report Download - page 22

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Third parties may claim that we are infringing or misappropriating their intellectual property rights and we could suffer significant litigation
expenses, losses or licensing expenses or be prevented from selling products or services.
From time to time, we receive notices from third parties regarding intellectual property infringement or misappropriation. Any dispute or litigation regarding
intellectual property could be costly and time-consuming due to the complexity of many of our technologies and the uncertainty of intellectual property
litigation. Our intellectual property portfolio may not be useful in asserting a counterclaim, or negotiating a license, in response to a claim of infringement or
misappropriation. In addition, as a result of such claims of infringement or misappropriation, we could lose our rights to critical technology, be required to
pay substantial damages or license fees with respect to the infringed rights or be required to redesign our products at substantial cost, any of which could
adversely impact our competitive position, revenues, profitability and cash flows. Even if we successfully defend against claims of infringement or
misappropriation, we may incur significant costs and diversion of management attention and resources, which could adversely affect our profitability and
cash flows.
We are subject to a variety of litigation in the course of our business that could adversely affect our results of operations and financial condition.
We are subject to a variety of litigation and similar proceedings incidental to our business, including claims for damages arising out of the use of our products
or services and claims relating to intellectual property matters, employment matters, tax matters, commercial disputes, competition and sales and trading
practices, environmental matters, personal injury, insurance coverage and acquisition-related matters. These lawsuits may include claims for compensatory
damages, punitive and consequential damages and/or injunctive relief. The defense of these lawsuits may divert our management’s attention, we may incur
significant expenses in defending these lawsuits, and we may be required to pay damage awards or settlements or become subject to equitable remedies that
could adversely affect our financial condition, operations and results of operations. Moreover, any insurance or indemnification rights that we may have may
be insufficient or unavailable to protect us against potential loss exposures. In addition, developments in legal proceedings in any given period may require us
to adjust the loss contingency estimates that we have recorded in our financial statements, or make estimates for matters previously not susceptible of
reasonable estimates, which could adversely affect our results of operations in any particular period.
Our operations, products and services expose us to the risk of environmental liabilities, costs, litigation and violations that could adversely affect
our financial condition, results of operations and reputation.
Certain of our operations, products and services are subject to environmental laws and regulations, which impose limitations on the discharge of pollutants
into the ground, air and water and establish standards for the use, generation, treatment, storage and disposal of hazardous and non-hazardous wastes. We
must also comply with various health and safety regulations in the U.S. and abroad in connection with our operations. We cannot assure you that our
environmental, health and safety compliance program has been or will be at all times effective. Failure to comply with any of these laws could result in civil
and criminal, monetary and non-monetary penalties and damage to our reputation. In addition, we cannot provide assurance that our costs of complying with
current or future environmental protection and health and safety laws will not exceed our estimates or adversely affect our financial condition and results of
operations.
In addition, we may incur costs related to remedial efforts or alleged environmental damage associated with past or current waste disposal practices or other
hazardous materials handling practices. We are also from time to time party to personal injury or other claims brought by private parties alleging injury due to
the presence of or exposure to hazardous substances. For additional information regarding these risks, please refer to “Item 1. Business – Regulatory Matters.”
We cannot assure you that our liabilities arising from past or future releases of, or exposures to, hazardous substances will not exceed our estimates or
adversely affect our financial condition, results of operations and reputation or that we will not be subject to additional claims for personal injury or cleanup in
the future based on our past, present or future business activities.
Product defects could adversely affect the results of our operations.
Manufacturing or design defects, unanticipated use of our products, or inadequate disclosure of risks relating to the use of our products can lead to injury or
other adverse events. These events could lead to recalls or safety alerts relating to our products, and could result, in certain cases, in the removal of a product
from the market. A recall could result in significant costs, as well as negative publicity and damage to our reputation that could reduce demand for our
products. Personal injuries relating to the use of our products can also result in product liability claims being brought against us.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.