Dell 2007 Annual Report Download - page 10

Table of Contents
Our manufacturing process consists of assembly, software installation, functional testing, and quality control. Testing and quality control
processes are also applied to components, parts, sub-assemblies, and systems obtained from third-party suppliers. Quality control is
maintained through the testing of components, subassemblies, and systems at various stages in the manufacturing process. Quality control
also includes a burn-in period for completed units after assembly, on-going production reliability audits, failure tracking for early
identification of production and component problems, and information from customers obtained through services and support programs.
We are certified, worldwide, by the International Standards Organization to the requirements of ISO 9001: 2000. This certification
includes our design, manufacture, and service of computer products in all of our locations.
We have relationships with third-party original equipment manufacturers that build some of our products to our specifications. In
addition, we are continuing to expand our use of original design manufacturing partnerships and manufacturing outsourcing relationships
in order to generate cost efficiencies, deliver products faster, and better serve our customers in certain segments and geographical areas.
We purchase materials, supplies, product components, and products from a large number of vendors. In some cases, multiple sources of
supply are not available and we have to rely on single-source vendors. In other cases, we may establish a working relationship with a
single source or a limited number of sources if we believe it is advantageous due to performance, quality, support, delivery, capacity, or
price considerations. This relationship and dependency has not caused material disruptions in the past, and we believe that any
disruptions that may occur because of our dependency on single- or limited-source vendors would not disproportionately disadvantage us
relative to our competitors. See "Part I — Item 1A — Risk Factors" for information about the risks associated with single- or limited-
sourced suppliers.
Patents, Trademarks, and Licenses
As of February 1, 2008, we held a worldwide portfolio of 1,954 patents and had an additional 2,196 patent applications pending. We also
hold licenses to use numerous third party patents. To replace expiring patents, we obtain new patents through our ongoing research and
development activities. The inventions claimed in our patents and patent applications cover aspects of our current and possible future
computer system products, manufacturing processes, and related technologies. Our product, business method, and manufacturing process
patents may establish barriers to entry in many product lines. While we use our patented inventions and also license them to others, we
are not substantially dependent on any single patent or group of related patents. We have entered into a variety of intellectual property
licensing and cross-licensing agreements. We have also entered into various software licensing agreements with other companies. We
anticipate that our worldwide patent portfolio will be of value in negotiating intellectual property rights with others in the industry.
We have obtained U.S. federal trademark registration for the DELL word mark and the Dell logo mark. We own registrations for 66 of
our other marks in the U.S. At February 1, 2008, we had pending applications for registration of 47 other trademarks. We believe that
establishment of the DELL word mark and logo mark in the U.S. is material to our operations. We have also applied for or obtained
registration of the DELL mark and several other marks in approximately 184 other countries.
We have entered into a variety of intellectual property licensing and cross-licensing agreements. We have also entered into various
software licensing agreements with a variety of 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 our business. We evaluate each claim relating to our products and,
if appropriate, seek a license to use the protected technology. The licensing agreements generally do not require the licensor to assist us in
duplicating its patented technology, nor do these agreements protect us from trade secret, copyright, or other violations by us or our
suppliers in developing or selling these products.
Employees
At the end of Fiscal 2008, we had approximately 88,200 total employees (consisting of 82,700 regular employees and 5,500 temporary
employees), compared to approximately 91,500 total employees (consisting of 83,100 regular
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