Dell 2003 Annual Report Download - page 9

Table of Contents
Patents, Trademarks, and Licenses
Dell holds a portfolio of 980 U.S. patents and 629 U.S. patent applications pending as of January 30, 2004, and has a number of related foreign patents and
patent applications pending. Dell's U.S. patents expire in years 2005 through 2022. The inventions claimed in those patents and patent applications cover
aspects of Dell's current and possible future computer system products, manufacturing processes, and related technologies. Dell is developing a portfolio of
patents that it anticipates will be of value in negotiating intellectual property rights with others in the industry.
Dell has obtained U.S. federal trademark registration for its DELL word mark and its Dell logo mark. Dell owns registrations for 52 of its other marks in the
U.S. As of January 30, 2004, Dell had pending applications for registration of 23 other trademarks. Dell believes that establishment of the DELL mark and
logo in the U.S. is material to Dell's operations. Dell has also applied for or obtained registration of the DELL mark and several other marks in approximately
185 other countries.
Dell has entered into a variety of intellectual property licensing and cross-licensing agreements. In addition, Dell has entered into nonexclusive licensing
agreements with Microsoft Corporation for various operating system and application software. Dell 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 Dell's business. Dell 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 Dell in duplicating its patented technology nor do these
agreements protect Dell from trade secret, copyright, or other violations by Dell or its suppliers in developing or selling these products. See "Item 1 —
Business — Factors Affecting Dell's Business and Prospects" for information about the risks associated intellectual property rights.
Employees
On January 30, 2004, Dell had approximately 46,000 regular employees. Approximately 22,200 of those employees were located in the U.S., and
approximately 23,800 were located in other countries. Dell believes that its ability to attract and retain qualified personnel is critical to its success and
achievement of its business plan. Dell has never experienced a work stoppage due to labor difficulties and believes that its employee relations are good.
Workforce diversity is an essential part of Dell's commitment to quality and the future of Dell.
Government Regulation
Dell'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 Trade Commission and Department of
Justice, the consumer protection laws of the Federal Trade Commission, the import/export regulatory activities of the U.S. Department of Commerce, the
product safety regulatory activities of the U.S. Consumer Products Safety Commission, and environmental regulation by a variety of regulatory authorities in
each of the areas in which Dell conducts business. Dell is also subject to regulation in other countries where it conducts business. In certain jurisdictions, such
regulatory requirements may be more stringent than in the U.S.
Backlog
Dell believes that backlog is not a meaningful indicator of net revenue that can be expected for any period. There can be no assurance that the backlog at any
point in time will translate into net revenue in any subsequent period, as unfilled orders can generally be canceled at any time by the customer. At the end of
fiscal 2004, 2003, and 2002, backlog was not material.
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