Autodesk 2008 Annual Report Download - page 88

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including but not limited to: the structure of royalty payments, offsetting considerations, if any, and the degree of
use of the licensed technology.
See Item 1A, “Risk Factors,” for further discussion of risks related to protecting our intellectual property.
PRODUCTION AND SUPPLIERS
Production of our Design Solutions Segment and certain Media and Entertainment Segment software
products involves duplication of the software media and the printing of user manuals. The purchase of media and
the transfer of the software programs onto media for distribution to customers are performed by us and by
licensed subcontractors. Media for our products include DVDs which are available from multiple sources. User
manuals for our products and packaging materials are produced to our specifications by outside sources.
Production is either performed in leased facilities operated by us or by independent third-party contractors. To
date, we have not experienced any material difficulties or delays in the production of our software and
documentation.
In addition, the Advanced Systems business line has historically relied on third-party vendors for the supply
of hardware components used in its systems. In the past, many of the Advanced Systems software products ran
on workstations manufactured by Silicon Graphics, Inc. (“SGI”). Over the past two years, we transitioned our
Advanced Systems product portfolio to standard, open, PC-based hardware systems.
EMPLOYEES
As of January 31, 2008, we employed approximately 7,300 people. None of our employees in the United
States are represented by a labor union; however, in certain foreign countries, our employees are represented by
work councils. We have never experienced any work stoppages and believe our employee relations are good.
Reliance upon employees in other countries entails various risks that possible government instability or
regulation unfavorable to foreign-owned businesses could negatively impact our business in the future.
Competition in recruiting personnel in the software industry, especially highly skilled engineers, is intense.
We believe our continued growth and future success is highly dependent on our continued ability to attract, retain
and motivate highly skilled employees.
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