Dish Network 2006 Annual Report Download - page 28

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18
Export Control Regulation
We are required to obtain import and general destination export licenses from the United States government to
receive and deliver components of DTH satellite TV systems. In addition, the delivery of satellites and related
technical information for the purpose of launch by foreign launch services providers is subject to strict export
control and prior approval requirements.
PATENTS AND TRADEMARKS
Many entities, including some of our competitors, have or may in the future obtain patents and other intellectual
property rights that cover or affect products or services related to those that we offer. In general, if a court
determines that one or more of our products infringes on intellectual property held by others, we may be required to
cease developing or marketing those products, to obtain licenses from the holders of the intellectual property at a
material cost, or to redesign those products in such a way as to avoid infringing the patent claims. If those
intellectual property rights are held by a competitor, we may be unable to obtain the intellectual property at any
price, which could adversely affect our competitive position.
We may not be aware of all intellectual property rights that our products may potentially infringe. In addition,
patent applications in the United States are confidential until the Patent and Trademark Office issues a patent and,
accordingly, our products may infringe claims contained in pending patent applications of which we are not aware.
Further, the process of determining definitively whether a claim of infringement is valid often involves expensive
and protracted litigation, even if we are ultimately successful on the merits.
We cannot estimate the extent to which we may be required in the future to obtain intellectual property licenses or
the availability and cost of any such licenses. Those costs, and their impact on our results of operations, could be
material. Damages in patent infringement cases may also include treble damages in certain circumstances. To the
extent that we are required to pay unanticipated royalties to third parties, these increased costs of doing business
could negatively affect our liquidity and operating results. We are currently defending multiple patent infringement
actions. We cannot be certain the courts will conclude these companies do not own the rights they claim, that our
products do not infringe on these rights, that we would be able to obtain licenses from these persons on
commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our
products to avoid infringement. See “Item 3 – Legal Proceedings.”
ENVIRONMENTAL REGULATIONS
We are subject to the requirements of federal, state, local and foreign environmental and occupational safety and
health laws and regulations. These include laws regulating air emissions, water discharge and waste management.
We attempt to maintain compliance with all such requirements. We do not expect capital or other expenditures for
environmental compliance to be material in 2007 or 2008. 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.
SEGMENT REPORTING DATA AND GEOGRAPHIC AREA DATA
For operating segment and principal geographic area data for 2006, 2005 and 2004 see Note 10 in the Notes to the
Consolidated Financial Statements in Item 15 of this Annual Report on Form 10-K.
EMPLOYEES
We had approximately 21,000 employees at December 31, 2006, most of whom are located in the United States. We
generally consider relations with our employees to be good.
Although a total of approximately 33 employees in two of our field offices have voted to unionize, we are not currently
a party to any collective bargaining agreements. However, we are currently negotiating collective bargaining
agreements at these offices.