DuPont 2011 Annual Report Download - page 10

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Table of Contents
Part I
ITEM 1. BUSINESS, continued
Intellectual Property
DuPont believes that its intellectual property estate provides it with an important competitive advantage. It has an established global network of attorneys, as
well as branding, advertising and licensing professionals, to procure, maintain, protect, enhance and gain value from this estate.
The company has a large portfolio of and is licensed under various patents. These definite-lived patents cover many products, processes and product uses.
These patents protect many aspects of the company's significant research programs and the goods and services it sells. The actual protection afforded by these
patents varies from country to country and depends upon the scope of coverage of each individual patent as well as the availability of legal remedies in each
country. DuPont owns about 19,000 worldwide patents and is awaiting action on about 18,000 worldwide patent applications. In 2011, the company was
granted 910 U.S. patents, the highest number for a single year in the company's history, and about 2,100 international patents. DuPont's rights under its patents
and licenses, as well as the products made and sold under them, are important to the company as a whole, and to varying degrees, important to each reportable
segment.
Trade secrets are an important element of the company's intellectual property. Many of the processes used to make DuPont products are kept as trade secrets
which, from time to time, may be licensed to third parties. DuPont vigilantly protects all of its intellectual property including its trade secrets. When the
company discovers that its trade secrets have been unlawfully taken, it reports the matter to governmental authorities for investigation and potential criminal
action, as appropriate. In addition, the company takes measures to mitigate any potential impact, which may include civil actions seeking redress, restitution
and/or damages based on loss to the company and/or unjust enrichment.
Ownership of and access to intellectual property rights, pa rticularly those relating to biotechnology and germplasm, will continue to be important to Pioneer
and its competitors. The environment in which Pioneer competes is characterized by the use among competitors of intellectual property rights, including
patent lawsuits, to gain advantage in commercial markets. In support of its business, Pioneer continues to build a large collection of intellectual property rights
related to biotechnology and germplasm and to license technology from others, including competitors. Pioneer endeavors to obtain such licenses on
commercially reasonable terms.
The company has about 2,450 unique trademarks for its products and services and approximately 22,500 registrations for these trademarks worldwide.
Ownership rights in trademarks do not expire if the trademarks are continued in use and properly protected. The company has many trademarks that have
significant recognition at the consumer retail level and/or business to business level.
Research and Development
The company conducts research at either dedicated research facilities or manufacturing plants. There are twelve major research locations in the U.S. &
Canada, with the highest concentration of facilities being located in the Wilmington, Delaware area. Reflecting the company's global interests, five major
research locations are located in both the Asia Pacific and Europe, Middle East and Africa (EMEA) regions. One major location is also located in Latin
America.
The objectives of the company's research and development programs are to create new technologies, processes and business opportunities in relevant fields, as
well as to improve existing products and processes. Each segment of the company funds research and development activities that support its business mission.
The company is expanding its offerings addressing safety, environment, energy and climate challenges in the global marketplace by developing and
commercializing renewable, bio-based materials; advanced biofuels; energy-efficient technologies; enhanced safety and protection products; and alternative
energy products and technologies. The goals are tied directly to business growth, including increasing food production, increasing renewable sources for
energy and raw materials, and providing greater safety and protection for people and the environment. All research and development activities are
administered by senior research and development management to ensure consistency with the business and corporate strategy. The future of the company is
not dependent upon the outcome of any single research program.
Additional information with respect to research and development, including the amount incurred during each of the last three fiscal years, is included in
Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, on page 19 of this report.
7