Dow Chemical 2013 Annual Report Download - page 38

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16
RESEARCH AND DEVELOPMENT
The Company is engaged in a continuous program of basic and applied research to develop new products and processes, to
improve and refine existing products and processes, and to develop new applications for existing products. Research and
development expenses were $1,747 million in 2013, $1,708 million in 2012 and $1,646 million in 2011. At December 31, 2013,
the Company employed approximately 6,400 people in various research and development activities.
PATENTS, LICENSES AND TRADEMARKS
The Company continually applies for and obtains U.S. and foreign patents and has a substantial number of pending patent
applications throughout the world. At December 31, 2013, the Company owned 3,879 active U.S. patents and 15,556 active
foreign patents as follows:
Patents Owned at December 31, 2013
United
States Foreign
Electronic and Functional Materials 1,049 3,864
Coatings and Infrastructure Solutions 607 2,887
Agricultural Sciences 706 2,789
Performance Materials 586 2,547
Performance Plastics 720 2,975
Feedstocks and Energy 68 213
Corporate 143 281
Total 3,879 15,556
Remaining Life of Patents Owned at December 31, 2013
United
States Foreign
Within 5 years 923 2,761
6 to 10 years 1,074 4,842
11 to 15 years 1,040 6,224
16 to 20 years 842 1,729
Total 3,879 15,556
Dow’s primary purpose in obtaining patents is to protect the results of its research for use in operations and licensing. Dow is
also party to a substantial number of patent licenses and other technology agreements. The Company had revenue related to
patent and technology royalties totaling $327 million in 2013, $448 million in 2012 and $437 million in 2011. The Company
incurred royalties to others of $198 million in 2013, $185 million in 2012 and $114 million in 2011. Dow also has a substantial
number of trademarks and trademark registrations in the United States and in other countries, including the “Dow in Diamond”
trademark. Although the Company considers that its patents, licenses and trademarks in the aggregate constitute a valuable
asset, it does not regard its business as being materially dependent on any single or group of related patents, licenses or
trademarks.