Callaway 2011 Annual Report Download - page 21

• Logistics improvements and packaging minimization; and
• Supply chain management through Social, Safety, and Environmental Responsibility audits of
suppliers.
These programs are routinely monitored through metrics reporting and reviewed by management.
The Company also has two existing programs focusing on the community, the Callaway Golf Company
Foundation and the Callaway Golf Community Giving program. Through these programs the Company and its
employees are able to give back to the community through monetary donations and by providing community
services. Information on both of these programs is available on the Company’s website at
www.callawaygolf.com. By being active and visible in the community and by embracing the tenets of
environmental stewardship, the Company believes it is acting in an environmentally responsible manner.
Intellectual Property
The Company is the owner of approximately 3,100 U.S. and foreign trademark registrations and over 2,300
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 17 “Commitments and
Contingencies—Legal Matters” to the Notes to Consolidated Financial Statements in this Form 10-K.
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, travel gear, rangefinders and practice aids. With respect to
its line of golf apparel, the Company has current licensing arrangements with Perry Ellis International for a
complete line of men’s and women’s apparel for distribution in certain retail channels in the United States,
Canada and Mexico, and Sanei International Co., Ltd. for a complete line of men’s and women’s apparel for
distribution in Japan, Korea, China and other Asia Pacific countries.
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) Nikon Vision
Co., Ltd. for rangefinders, (iv) Sweda Company, LLC for a collection of padfolios, pens and other gift items for
the corporate market, and (v) Walman Optical, for a line of prescription Callaway eyewear. 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, 2011, the Company and its subsidiaries had approximately 2,100 full-time and part-
time employees. This number includes a reduction in personnel due in part to the Company’s restructuring of its
golf club and golf ball manufacturing and distribution operations, which was substantially completed as of
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