Ubisoft 2000 Annual Report Download - page 44

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43
5.1. PROTECTION OF TRADEMARKS
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5
Ubi Soft programs are covered by intellectual property rights both in
Europe and internationally (for France: the Institut National de la
Propriété Industrielle [French Patent Office] in Paris; for Europe: the
Office for Harmonization in the Internal Market; internationally: the
World Intellectual Property Organization; and finally, for North
America, the Patent and Trademark Office in Washington, D.C.). The
Ubi Soft Group owns all its trademarks.
In addition, the software programs produced by Ubi Soft
Entertainment are covered by international copyright laws.
Ubi Soft Entertainment has not filed any patents and does not
depend on any particular patent.
Like all publishers of entertainment software, Ubi Soft
Entertainment faces the problem of piracy. It belongs to SELL (the
French trade association of entertainment software publishers) and
is a private party in all software counterfeiting cases brought in
France. Moreover, with regard to piracy over the Internet, the com-
pany systematically takes legal action against hackers in order to
force the withdrawal of games which are on-line illegally.
5.2. DEPENDENCE OF UBI SOFT ENTERTAINMENT ON PARTICULAR
CONTRACTS - MAIN CUSTOMERS
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Ubi Soft Entertainment has two types of distribution network:
>the centralized Anglo-American model (USA, United Kingdom,
Japan): the chain’s buyer makes centralized purchases of the pro-
ducts, which the chain then distributes to its own stores;
>the decentralized European model (Germany, France, Switzerland,
Benelux, Italy, Spain): the chain makes centralized purchases of the
items, but uses a distributor to deliver them to each of its stores.
>Ubi Soft’s ten largest customers account for 31.9% of the Group’s
pre-tax sales.
>Dependence on manufacturers:
Ubi Soft, like all publishers of games for consoles, buys games
cartridges and miscellaneous accessories from console manufacturers.
These supplies are thus dependent on the manufacturer. There is no
special dependency with regard to PC games.
5.3. LITIGATION
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So far as the company is aware, there are no particular events or
disputes that are likely to have or have recently had any significant
impact on the business, earnings, financial situation, or assets of
Ubi Soft Entertainment and its subsidiaries.
5.4. COMMITMENTS
The Group’s management has made no firm commitments on future
investments.
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