MoneyGram 2006 Annual Report Download - page 11

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Table of Contents
Other: In the United States, the Company sells its own MoneyGram-branded stored value card and also loads stored value cards of other
card issuers through our ExpressPayment system. Stored value services are generally subject to federal and state laws and regulations,
including laws related to consumer protection, licensing, escheat, anti-money laundering and the payment of wages. These laws are
evolving, unclear and sometimes inconsistent. The extent to which these laws apply to the Company is in flux and we are currently
unable to determine the impact that any future clarification, changes or interpretation of these laws will have on our services.
Intellectual Property
We rely on a combination of patent, trademark and copyright laws, and trade secret protection and confidentiality or license agreements
to protect our proprietary rights in products, services, know-how and information. Intellectual property laws afford limited protection.
Certain rights in processing equipment, software and business processes held by us and our subsidiaries provide us with a competitive
advantage, even though not all of these rights are protected under intellectual property laws. It may be possible for a third party to copy
our products and services or otherwise obtain and use our proprietary information without our permission.
U.S. patents are currently granted for a term of 20 years from the date a patent application is filed. We own U.S. and foreign patents
related to our money order technology. Our U.S. patents have in the past given us competitive advantages in the marketplace, including a
number of patents for automated money order dispensing systems and printing techniques, many of which have expired. We also have
patent applications pending in the United States that relate to our money transfer, money order, PrimeLink and bill payment technologies
and business methods. We anticipate that these patents, if granted, will give us continued competitive advantages in the marketplace.
However, our competitors are also actively patenting their technology and business processes.
U.S. trademark registrations are for a term of 10 years and are renewable every 10 years as long as the trademarks are used in the regular
course of trade. We register our trademarks in the U.S. and in a number of other countries where we do business. We maintain a portfolio
of trademarks representing substantial goodwill in our businesses. Many of our trademarks, including the MoneyGram®,
ExpressPayment®, our globe with arrows logo, PrimeLink®, PrimeLinkplus®, AgentConnect®, DeltaWorks®, and Delta T3® marks have
substantial importance and value to our business.
Relationship with Viad
We entered into various agreements with Viad governing our division of liabilities at the time of the spin-off, including a Separation and
Distribution Agreement, an Employee Benefits Agreement and a Tax Sharing Agreement. An Interim Services Agreement with Viad
terminated in 2006. Additionally, we purchased a corporate aircraft from Viad, 50% in 2005 and the remainder in 2006. See Note 3 of the
Notes to the Consolidated Financial Statements.
Employees
At December 31, 2006, we had approximately 1,782 full-time employees in the United States and 294 full-time employees
internationally. In addition, we use contractors to support certain of our domestic and international sales and marketing efforts. None of
our employees are represented by a labor union and we consider our employee relations to be good.
Executive Officers of the Registrant
Philip W. Milne, age 47, has served as our President and Chief Executive Officer and as a Director of MoneyGram since June 2004. He
was named Chairman of the Board effective January 1, 2007. He is also the President and Chief Executive Officer of MPSI and its
predecessor, Travelers, our principal operating subsidiary, a position he has held since 1996. Mr. Milne joined Travelers in 1991 and
served as General Manager of the official check business from 1991 until early 1992, as Vice President, General Manager of the Payment
Systems segment from 1992 until early 1993, and as Vice President, General Manager of the Retail Payment Products group from 1993
to 1996.
David J. Parrin, age 52, has served as the Executive Vice President, Chief Financial Officer of MoneyGram since November 2005.
Mr. Parrin previously served as the Vice President and Chief Financial Officer of MoneyGram since June 2004 and Travelers since
joining the Company in June 2002. From 1998 to 2002, he was with the investment firm of Dain Rauscher Corporation (now RBC Dain
Rauscher Corporation), serving since 1999 as
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