Callaway 2009 Annual Report Download - page 21

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 16 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 and lifestyle apparel, watches, travel gear, rangefinders and practice
aids. With respect to its line of golf and lifestyle apparel, the Company has current licensing arrangements with
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 Perry Ellis International for a complete line of men’s and women’s
apparel for distribution in the United States.
In addition to apparel, the Company has also licensed its trademarks to, among others, (i) IZZO Golf for
practice aids, (ii) TRG Accessories, LLC for a collection primarily consisting of travel gear, (iii) Fossil, Inc. for a
line of Callaway Golf watches and clocks, (iv) Nikon Vision Co., Ltd. for rangefinders, and (v) Global Wireless
Entertainment, Inc. for the creation of golf-related software and applications for wireless handheld devices and
platforms. In addition, the Company designs and sells its own line of footwear and eyewear, and has entered into
buying service agreements with Advanced Manufacturing Group Ltd. for footwear and MicroVision Optical Inc.
for eyewear.
Employees
As of December 31, 2009, the Company and its subsidiaries had approximately 2,300 full-time and part-
time employees. This number was reduced from 2,700 full-time and part-time employees as of December 31,
2008 in order to reduce costs to mitigate the negative impacts of the economy on the Company’s results of
operations. The Company employs temporary workers as the business requires.
Historically, Callaway Golf employees have not been represented by unions. The golf ball manufacturing
employees in Chicopee, Massachusetts, however, are unionized and are covered under a collective bargaining
agreement, which is scheduled to expire on September 30, 2011. In addition, certain of the Company’s
production employees in Canada and Australia are also unionized. The Company considers its employee relations
to be good.
Access to SEC Filings through Company Website
Interested readers can access the Company’s annual reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) through the Investor Relations section of the
Company’s website at www.callawaygolf.com. These reports can be accessed free of charge from the Company’s
website as soon as reasonably practicable after the Company electronically files such materials with, or furnishes
them to, the Commission. In addition, the Company’s Corporate Governance Guidelines, Code of Conduct and
the written charters of the committees of the Board of Directors are available in the Corporate Governance
portion of the Investor Relations section of the Company’s website and are available in print to any shareholder
who requests a copy. The information contained on the Company’s website shall not be deemed to be
incorporated into this report.
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