Virgin Media 2011 Annual Report Download - page 23

We also used our digital technology to provide social benefits in 2011 through our Virgin Media Pioneers
program. This program provides young people who are in the early stages of running or setting up a business
with business support, professional advice and opportunities to work with us.
Following the launch of our sustainability website in 2010, digital technology has been at the heart of how
we engage people in our progress. In 2011 this included a formal program involving key opinion leaders, staff
and customers.
Research and Development
Our research and development activities involve the analysis of technological developments affecting our
cable television, telephone (including mobile) and telecommunications businesses, the evaluation of existing
services and sales and marketing techniques and the development of new services and techniques.
Patents, Trademarks, Copyrights and Licenses
We do not have any material patents or copyrights nor do we believe that patents play a material role in our
business. We own or have the right to use registered trademarks, which in some cases are, and in others may be,
of material importance to our business. This includes the exclusive right to use the “Virgin” name and logo under
licenses from Virgin Enterprises Limited in connection with our corporate activities and the activities of our
consumer and business operations. These licenses, which expire in April 2036, are exclusive to us within the
U.K. and Ireland, and are subject to renewal on terms to be agreed. They entitle us to use the “Virgin” name for
the television, broadband internet, fixed line telephone and mobile phone services we provide to our consumer
and business customers, and in connection with the sale of certain communications equipment, such as set-top
boxes and cable modems.
Our license agreements provide for an annual royalty of 0.25% of certain consumer, business and content
revenues, subject to a minimum annual royalty, subject to inflationary adjustments, of £8.5 million in relation to
our consumer operations, and £1.5 million in relation to our business operations.
Under the agreements we have worldwide exclusivity over the name “Virgin Media” and “Virgin Media
Inc.” For our Business division, we are licensed to use the name “Virgin Media Business” for the provision of
business communications services. We had the right to use the name “Virgin Media Entertainment” for our
premium TV distribution operations in Luxembourg until the end of 2011 when our Luxembourg operations
ceased whereupon Virgin Media Limited assumed all responsibility for the premium-subscription based services.
Employees
At December 31, 2011, we had 12,689 employees, of whom 11,450 were full-time and 1,239 were part-time
employees. We also had 1,014 temporary employees. Our field service technicians and network engineers (which
represent approximately 16% of our employees) are covered by agreements with either the Communication
Workers Union, or CWU, or the Broadcasting, Entertainment, Cinematograph and Theatre Union, or BECTU.
These agreements are terminable by either the relevant union or us with three months written notice. Except for
these arrangements, no other employees are covered by collective bargaining or recognition agreements. We
believe we have good relationships with our employees and our unions in relation to the dealings we have with
them under our recognition agreements.
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