Lexmark 2011 Annual Report Download - page 22

Ms. Isbell has been Vice President of Human Resources of the Company since February 2003. From
January 2001 to February 2003, Ms. Isbell served as Vice President of Worldwide Compensation and
Resource Programs in the Company’s Human Resources department.
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, ISS and Corporate Finance since November 2010. From
June 2009 to November 2010, Mr. Stromquist served as Vice President, PSSD and Corporate
Finance. 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 1,905 U.S. patents and approximately 635 pending
U.S. patent applications. The Company also holds approximately 1,310 foreign patents and pending
patent applications. These patents generally have a term of twenty years from the time they are filed.
As the Company’s patent portfolio has been developed over time, the remaining terms on the individual
patents vary. 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. While we believe that our
portfolio of patents and applications has value, no single patent is in itself essential to our business as
a whole or any individual segment.
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 there from, 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.
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