Callaway 2007 Annual Report Download - page 20

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The Company adheres to all applicable Environmental Laws and takes action as necessary to comply with
these laws. The Company maintains an environmental and safety program and employs two full-time
environmental engineers at its Carlsbad, California facility and a director of environmental, health and safety
matters at its Chicopee, Massachusetts facility to manage the program. The environmental and safety program
includes obtaining environmental permits as required, capturing and appropriately disposing of any waste
by-products, tracking hazardous waste generation and disposal, air emissions, safety situations, material safety
data sheet management, storm water management and recycling, and auditing and reporting on its compliance.
In addition, the facility in Chicopee was a charter member in the U.S. Environmental Protection Agency’s
National Performance Track program. This program recognizes facilities that have demonstrated a commitment
to superior environmental performance and have a good record of compliance with environmental regulations.
The National Environmental Performance Track was developed by the Environmental Protection Agency to
reward companies who do more than environmental regulations require.
Historically, the costs of environmental compliance have not had a material adverse effect upon the
Company’s business. Furthermore, the Company does not believe that the monitoring and remedial obligations it
assumed in connection with the Top-Flite Acquisition will have a material adverse effect upon the Company’s
business. The Company believes that its operations are in substantial compliance with all applicable
Environmental Laws.
Intellectual Property
The Company is the owner of approximately 2,800 U.S. and foreign trademark registrations and over 2,100
U.S. and foreign patents relating to the Company’s products, product designs, manufacturing processes and
research and development concepts. Other patent and trademark applications are pending and await registration.
In addition, the Company owns various other protectable rights under copyright, trade dress and other statutory
and common laws. The Company’s intellectual property rights are very important to the Company and the
Company seeks to protect such rights through the registration of trademarks and utility and design patents, the
maintenance of trade secrets and the creation of trade dress. When necessary and appropriate, the Company
enforces its rights through litigation. Information regarding current litigation matters in connection with
intellectual property is contained in Item 3 “Legal Proceedings” below and in Note 14 to the Company’s
Consolidated Financial Statements, “Commitments and Contingencies: Legal Matters.”
The Company’s patents are generally in effect for up to 20 years from the date of the filing of the patent
application. The Company’s trademarks are generally valid as long as they are in use and their registrations are
properly maintained and have not been found to become generic. See below, “Certain Factors Affecting
Callaway Golf Company” contained in Item 1A.
Licensing
The Company from time to time, in exchange for a royalty fee, licenses its trademarks and service marks to
third parties for use on products such as golf apparel, watches, travel gear, rangefinders, practice aids and
eyewear. The Company has current licensing arrangements with (i) Ashworth, Inc. for a complete line of men’s
and women’s apparel for distribution in the United States, Canada, Europe and South Africa, (ii) Sanei
International Co., Ltd. for a complete line of men’s and women’s apparel for distribution in Japan, Korea, China
and other Asian Pacific countries, and (iii) Playcorp Pty. Ltd. for a complete line of men’s and women’s apparel
for distribution in Australia and New Zealand.
In addition to apparel, the Company has also licensed its trademarks to, among others, (i) Fossil, Inc. for a
line of watches and clocks, (ii) TRG Accessories, LLC for a collection primarily consisting of travel gear,
(iii) Global Wireless Entertainment, Inc. for the creation of golf-related software and applications for wireless
handheld devices and platforms, (iv) MicroVision Optical, Inc. for eyewear, (v) Nikon Vision Co., Ltd.
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