Plantronics 2011 Annual Report Download - page 16

We procure materials to meet forecasted customer requirements. Special products and certain large orders are quoted for delivery
after receipt of orders at specific lead times. We maintain minimum levels of finished goods based on market demand in addition
to inventories of raw materials, work in process, and sub-assemblies and components. In addition, certain vendors maintain
inventories on consignment which primarily consist of raw materials and components. We write-down inventory items determined
to be either excess or obsolete to the lower of cost or market value.
ENVIRONMENTAL MATTERS
We are required to comply and are currently in compliance with the European Union and other Directives on the Restrictions of
the use of Certain Hazardous Substances in Electrical and Electronic Equipment (“RoHS”) and on Waste Electrical and Electronic
Equipment requirements. Additionally, we are compliant with the RoHS initiatives in China and Korea.
We are subject to various federal, state, local, and foreign environmental laws and regulations, including those governing the use,
discharge, and disposal of hazardous substances in the ordinary course of our manufacturing process. We believe that our current
manufacturing and other operations comply in all material respects with applicable environmental laws and regulations; however,
it is possible that future environmental legislation may be enacted or current environmental legislation may be interpreted to create
environmental liability with respect to our facilities, operations, or products.
We continue our efforts toward environmental and social responsibility. In Spring 2011, our solar panel installation project will
be completed, and it will be the largest solar installation in Santa Cruz County. Upwards of 80% of our Santa Cruz corporate site
utility costs are expected to be offset by our solar installation.
INTELLECTUAL PROPERTY
We maintain a program of seeking patent protection for our technologies when we believe it is commercially appropriate. As of
March 31, 2011, we had 534 worldwide patents in force, expiring between 2011 and 2035.
Our success will depend in part on our ability to obtain patents and preserve other intellectual property rights covering the design
and operation of our products. We intend to continue to seek patents on our inventions when commercially appropriate. The
process of seeking patent protection can be lengthy and expensive, and there can be no assurance that patents will be issued for
currently pending or future applications or that our existing patents or any new patents issued will be of sufficient scope or strength
or provide meaningful protection or any commercial advantage to us. We may be subject to, or may initiate, litigation or patent
office interference proceedings, which may require significant financial and management resources. The failure to obtain necessary
licenses or other rights or the advent of litigation arising out of any such intellectual property claims could have a material adverse
effect on our operations.
We own trademark registrations in the U.S. and a number of other countries with respect to the Plantronics and Clarity trademarks
as well as the names of many of our products and product features. We currently have U.S. and foreign trademark applications
pending in connection with certain new products and product features. We also attempt to protect our trade secrets and other
proprietary information through comprehensive security measures, including agreements with customers and suppliers, and
proprietary information agreements with employees and consultants. We may seek copyright protection where we believe it is
applicable. We own a number of domain name registrations and intend to seek more as appropriate. There can be no assurance
that our existing or future copyright registrations, trademarks, trade secrets, or domain names will be of sufficient scope or strength
or provide meaningful protection or any commercial advantage to us.
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