Lifetime Fitness 2010 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2010 Lifetime Fitness annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

20
If it becomes necessary to protect or defend our intellectual property rights or if we infringe on the intellectual
property rights of others, we may become involved in costly litigation or be required to pay royalties or fees.
We may have disputes with third parties to enforce our intellectual property rights, protect our trademarks,
determine the validity and scope of the proprietary rights of others or defend ourselves from claims of infringement,
invalidity or unenforceability. Such disputes may require us to engage in litigation. We may incur substantial costs
and a diversion of resources as a result of such disputes and litigation, even if we win. In the event that we do not
win, we may have to enter into royalty or licensing agreements, we may be prevented from using the marks within
certain markets in connection with goods and services that are material to our business or we may be unable to
prevent a third party from using our marks. We cannot assure you that we would be able to reach an agreement on
reasonable terms, if at all. In particular, although we own a federal trademark registration for use of the LIFE TIME
FITNESS® mark in the field of health and fitness centers, we are aware of entities in certain locations around the
country that use LIFE TIME FITNESS, LIFE TIME or other similar marks in connection with goods and services
related to health and fitness. The rights of these entities in such marks may predate our rights. Accordingly, if we
open any centers in the areas in which these parties operate, we may be required to pay royalties or may be
prevented from using the mark in such areas.
If we acquire a business, we may be unable to successfully integrate the business into our own.
In order to remain competitive or to expand our business, we may find it necessary or desirable to acquire other
businesses. If we identify an appropriate acquisition candidate, we may not be able to negotiate the terms of the
acquisition successfully or finance the acquisition. If we do acquire another business, completing a potential
acquisition and integrating the business into our own may place significant demands on our administrative,
operational, financial and other resources and may require significant management time. In addition, we cannot
provide any assurances that we will be able to successfully integrate them into our own business or achieve any
goals relating to the acquisition.
Item 1B. Unresolved Staff Comments.
None.