Intel 2010 Annual Report Download - page 20

Table of Contents
Acquisitions and Strategic Investments
We expect to complete the acquisition of McAfee in the first quarter of 2011. McAfee is a provider of security products and
services that help secure systems and networks. As a result of the acquisition, we expect to hire approximately 6,400 McAfee
employees. McAfee’
s offerings will include endpoint security products, system security products, consumer security products,
network security products, and risk and compliance products. Many of McAfee’s products are offered under a software-as-a-
service delivery model, an online console used to manage and update hardware and software, which reduces on-premise
capital expenses. The anticipated acquisition of McAfee reflects our belief that security is a fundamental component of online
computing. As we develop future products and services, security considerations will be as important as our continued focus on
energy-efficient performance and Internet connectivity.
In the first quarter of 2011, we completed the acquisition of the WLS business of Infineon. As a result of the acquisition, we
expect to hire approximately 3,700 employees from Infineon. The WLS business will operate as Intel Mobile Communications
and offer mobile phone components such as baseband processors, radio frequency transceivers, and power management chips.
In addition to managing the existing WLS business, the objective of the acquisition is to contribute to our strategy to provide
solutions with Internet connectivity to a broad range of computing devices.
During 2009, we completed the acquisition of Wind River Systems, a vendor of software for embedded devices. The objective
of the acquisition of Wind River Systems was to enable the introduction of products for the embedded and handheld market
segments, resulting in benefits for our existing operations.
For further information, see “Note 15: Acquisitions” in Part II, Item 8 of this Form 10-K.
Intellectual Property and Licensing
Intellectual property rights that apply to our products and services include patents, copyrights, trade secrets, trademarks, and
maskwork rights. We maintain a program to protect our investment in technology by attempting to ensure respect for our
intellectual property rights. The extent of the legal protection given to different types of intellectual property rights varies
under different countries’ legal systems. We intend to license our intellectual property rights where we can obtain adequate
consideration. See “Competition” earlier in this section, “Risk Factors” in Part I, Item 1A, and “Note 29: Contingencies” in
Part II, Item 8 of this Form 10-K.
We have filed and obtained a number of patents in the U.S. and other countries. While our patents are an important element of
our success, our business as a whole is not significantly dependent on any one patent. Because of the fast pace of innovation
and product development, our products are often obsolete before the patents related to them expire, and sometimes are
obsolete before the patents related to them are even granted. As we expand our product offerings into new industries, we also
seek to extend our patent development efforts to patent such product offerings. Established competitors in existing and new
industries, as well as companies that purchase and enforce patents and other intellectual property, may already have patents
covering similar products. There is no assurance that we will be able to obtain patents covering our own products, or that we
will be able to obtain licenses from such companies on favorable terms or at all.
The majority of the software that we distribute, including software embedded in our component-level and system-level
products, is entitled to copyright protection. To distinguish Intel products from our competitors’ products, we have obtained
certain trademarks and trade names for our products, and we maintain cooperative advertising programs with certain
customers to promote our brands and to identify products containing genuine Intel components. We also protect certain details
about our processes, products, and strategies as trade secrets, keeping confidential the information that we believe provides us
with a competitive advantage.
Compliance with Environmental, Health, and Safety Regulations
Our compliance efforts focus on monitoring regulatory and resource trends and setting company-wide performance targets for
key resources and emissions. These targets address several parameters, including product design; chemical, energy, and water
use; climate change; waste recycling; and emissions.
Intel focuses on reducing natural resource use, the solid and chemical waste by-products of our manufacturing processes, and
the environmental impact of our products. We currently use a variety of materials in our manufacturing process that have the
potential to adversely impact the environment and are subject to a variety of EHS laws and regulations. Over the past several
years, we have significantly reduced the use of lead and halogenated flame retardants in our products and manufacturing
processes.
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