Lexmark 2009 Annual Report Download - page 18

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Mr. Patton has been Vice President, General Counsel and Secretary of the Company since October 2008.
From June 2008 to October 2008, Mr. Patton served as Acting General Counsel and Secretary. From
February 2001 to June 2008, Mr. Patton served as Corporate Counsel.
Mr. Stromquist has been Vice President, PSSD and Corporate Finance since June 2009. From July 2001
to June 2009, Mr. Stromquist served as Vice President and Corporate Controller of the Company.
Intellectual Property
The Company’s intellectual property is one of its major assets and the ownership of the technology used in
its products is important to its competitive position. Lexmark seeks to establish and maintain the
proprietary rights in its technology and products through the use of patents, copyrights, trademarks,
trade secret laws, and confidentiality agreements.
Lexmark holds a portfolio of approximately 1,610 U.S. patents and approximately 860 pending U.S. patent
applications. The Company also holds approximately 1,360 foreign patents and pending patent
applications. The inventions claimed in these patents and patent applications cover aspects of the
Company’s current and potential future products, manufacturing processes, business methods and
related technologies. The Company is developing a portfolio of patents that protects its product lines
and offers the possibility of entering into licensing agreements with others.
Lexmark has a variety of intellectual property licensing and cross-licensing agreements with a number of
third parties. Certain of Lexmark’s material license agreements, including those that permit the Company
to manufacture some of its current products, terminate as to specific products upon certain “changes of
control” of the Company.
The Company has trademark registrations or pending trademark applications for the name LEXMARK in
approximately 90 countries for various categories of goods and services. Lexmark also owns a number of
trademark applications and registrations for various product names. The Company holds worldwide
copyrights in computer code and publications of various types. Other proprietary information is protected
through formal procedures, which include confidentiality agreements with employees and other entities.
Lexmark’s success depends in part on its ability to obtain patents, copyrights and trademarks, maintain
trade secret protection and operate without infringing the proprietary rights of others. While Lexmark
designs its products to avoid infringing the intellectual property rights of others, current or future claims of
intellectual property infringement, and the expenses resulting therefrom, could materially adversely affect
its business, operating results and financial condition. Expenses incurred by the Company in obtaining
licenses to use the intellectual property rights of others and to enforce its intellectual property rights against
others also could materially affect its business, operating results and financial condition. In addition, the
laws of some foreign countries may not protect Lexmark’s proprietary rights to the same extent as the laws
of the U.S.
Environmental and Regulatory Matters
Lexmark’s operations, both domestically and internationally, are subject to numerous laws and
regulations, particularly relating to environmental matters that impose limitations on the discharge of
pollutants into the air, water and soil and establish standards for the treatment, storage and disposal of
solid and hazardous wastes. Lexmark could incur substantial costs, including cleanup costs, fines and civil
or criminal sanctions, and third-party damage or personal injury claims, if we were to violate or become
liable under environmental laws. The liability for environmental remediation and other environmental costs
is accrued when Lexmark considers it probable and can reasonably estimate the costs. Environmental
costs and accruals are presently not material to our operations or financial position. There is no assurance
that existing or future environmental laws applicable to our operations or products will not have a material
adverse effect on Lexmark’s operations or financial condition.
Lexmark has implemented numerous programs to recover, remanufacture and recycle certain of its
products and intends to continue to expand on initiatives that have a positive effect on the environment.
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