MoneyGram 2007 Annual Report Download - page 13

Table of Contents
Privacy Regulations. In the ordinary course of our business, we collect certain types of data and thus are subject to certain privacy laws
in the United States and abroad. In the United States, we are subject to the Gramm-Leach-Bliley Act of 1999 (the "GLB Act"), which
requires that financial institutions have in place policies regarding the collection, processing, storage and disclosure of information
considered nonpublic personal information. We comply with the GLB Act by posting a privacy notice on our website, posting a privacy
notice on the forms completed by consumers in order to use services and maintaining an information safeguards program. In addition, we
collect personal data from the European Union which is subject to the European Privacy Directive (the "Directive"). We abide by the
U.S. Department of Commerce's Safe Harbor framework principles to assist in compliance with the Directive. In some cases, the privacy
laws of an EU member state may be more restrictive than the Directive and may impose additional duties, with which we must comply.
We also have confidentiality/information security standards and procedures in place for our business activities and with our third-party
vendors and service providers. Privacy and information security laws in various jurisdictions are evolving regularly and conflicting laws
in various jurisdictions pose challenges.
In January 2007, we disclosed that we were the subject of an isolated unlawful data server attack and suffered potential improper data
access by unauthorized persons. We notified appropriate authorities and customers and also took additional security measures to help
ensure that such an incident does not occur again.
Other. In the United States, we sell our MoneyGram-branded stored value card and also load 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 are applicable to us is uncertain 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 rights in processing equipment,
computer systems, software and business processes held by us and our subsidiaries provide us with a competitive advantage. Even though
not all of these assets are protectable, we attempt to take the measures necessary to protect as much of our intellectual property as current
intellectual property laws will allow.
We own U.S. and foreign patents related to our money order and money transfer 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 applications, if granted, will give
us continued competitive advantages in the marketplace. However, our competitors are also actively patenting their technology and
business processes.
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.
Employees
At December 31, 2007, we had approximately 1,887 full-time employees in the United States and 433 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.
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