MoneyGram 2009 Annual Report Download - page 11

Table of Contents
We have been in discussions with Goldman Sachs regarding this matter, and Goldman Sachs and the Company are each evaluating
various alternatives pursuant to which the Company would not be deemed to be a subsidiary of a bank holding company and thus not
subject to the Bank Holding Company Act. There can be no assurance of any particular outcome of such evaluations.
Other. We sell our MoneyGram-branded prepaid card in the United States, in addition to loading prepaid cards of other card issuers
through our ExpressPayment system. Prepaid card 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.
Clearing and Cash Management Bank Relationships
Our business involves the movement of money. On average, we move over $1.0 billion daily to settle our payment instruments and make
related settlements with our agents and financial institutions. We generally receive a similar amount on a daily basis from our agents and
financial institutions in connection with our payment service obligations. We move money through a network of clearing and cash
management banks, and our relationships with these clearing banks and cash management banks are a critical component of our ability to
move funds on a global and timely basis.
We maintain contractual relationships with a variety of domestic and international cash management banks for automated clearing house
("ACH") and wire transfer services for the movement of consumer funds and agent settlements. There are a limited number of
international cash management banks with a network large enough to manage cash settlements for our entire agent base. During 2009, we
converted to a new primary international cash management banking relationship. This relationship and our other banking relationships
provide us with cash management services that are sufficient for our needs.
We rely on two banks to clear our retail money orders. We entered into a new five-year agreement with our secondary money order
clearing bank in early 2009, and are in the process of negotiating a new agreement with our primary money order clearing bank. We
currently have five official check clearing banks. We believe these relationships provide sufficient capacity for our money order and
official check outsourcing services.
Intellectual Property
The MoneyGram brand is important to our business. We have registered our MoneyGram trademark in the United States and a majority
of the other countries where we do business. We maintain a portfolio of other trademarks that are also important to our business,
including our ExpressPayment, globe with arrows logo, MoneyGram Rewards, The Power is in Your Hands®, The Power to Change the
Way You Send Money®, FormFree and AgentConnect marks. In addition, we maintain a portfolio of MoneyGram branded domain
names.
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 take appropriate measures to protect our intellectual property.
We own United States and foreign patents related to our money order and money transfer technology. Our United States 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, could give us continued competitive advantages in the marketplace. However, our competitors also actively patent their
technology and business processes.
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