Dell 2000 Annual Report Download - page 9

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patents that it anticipates will be of value in negotiating intellectual property rights with others in the industry.
The Company has obtained U.S. federal trademark registration for its DELL word mark and its Dell logo mark. The Company owns
registrations for 34 of its other marks in the U.S. As of March 1, 2001, the Company had pending applications for registration of 48
other trademarks. The DELL word mark, Dell logo and other trademark and service mark registrations in the U.S. may be renewed as
long as the mark continues to be used in interstate commerce. The Company believes that establishment of the DELL mark and logo
in the U.S. is material to the Company's operations. The Company has also applied for or obtained registration of the DELL mark and
several other marks in approximately 170 other countries or jurisdictions where the Company conducts or anticipates expanding its
international business. The Company has also registered approximately 700 global domain names. In addition, the Company has
registered in excess of 300 country-specific domain names. The Company has also taken steps to reserve corporate names and to form
non-operating subsidiaries in certain foreign countries where the Company anticipates expanding its international business.
The Company has entered into a variety of intellectual property licensing and cross-licensing agreements. In addition, the Company
has entered into nonexclusive licensing agreements with Microsoft Corporation for various operating system and application software.
The Company has also entered into various software licensing agreements with other companies.
From time to time, other companies and individuals assert exclusive patent, copyright, trademark or other intellectual property rights
to technologies or marks that are important to the technology industry or the Company's business. The Company evaluates each claim
relating to its products and, if appropriate, seeks a license to use the protected technology. The licensing agreements generally do not
require the licensor to assist the Company in duplicating its patented technology nor do these agreements protect the Company from
trade secret, copyright or other violations by the Company or its suppliers in developing or selling these products. See "Item 1 —
Business — Factors Affecting the Company's Business and Prospects — Patent Rights" for information about intellectual property
risks.
Infrastructure
Management Information Systems
The Company's management information systems enable the Company to track each unit sold from the initial sales contact, through
the manufacturing process to post-sale service and support. The systems assist the Company in tracking key information about
customer needs. Using its database to assess customer trends, the Company targets marketing activities specifically to particular types
of customers. This database, unique to the Company's direct model, allows the Company to gauge customer satisfaction issues and
also provides the opportunity to test new propositions in the marketplace prior to product or service introductions.
Employees
On February 2, 2001, the Company had approximately 40,000 regular employees. Approximately 27,000 of those employees were
located in the U.S., and approximately 13,000 were located in other countries. The Company has never experienced a work stoppage
due to labor difficulties and believes that its employee relations are good.
Government Regulation
The Company's business is subject to regulation by various federal and state governmental agencies. Such regulation includes the
radio frequency emission regulatory activities of the U.S. Federal Communications Commission, the anti-trust regulatory activities of
the U.S. Federal
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Trade Commission and Department of Justice, the import/export regulatory activities of the U.S. Department of Commerce and the
product safety regulatory activities of the U.S. Consumer Products Safety Commission.
The Company also is required to obtain regulatory approvals in other countries prior to the sale or shipment of products. In certain
jurisdictions, such requirements are more stringent than in the U.S. Many developing nations are just beginning to establish safety,
environmental and other regulatory requirements, which may vary greatly from U.S. requirements.
Backlog
The Company does not believe that backlog is a meaningful indicator of sales that can be expected for any period, and there can be no
assurance that the backlog at any point in time will translate into sales in any subsequent period. At the end of fiscal year 2001, 2000,
and 1999, backlog was not material.