Callaway 2013 Annual Report Download - page 20

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6
Historically, the costs of environmental compliance have not had a material adverse effect upon the Company’s
business. The Company believes that its operations are in substantial compliance with all applicable Environmental Laws.
Sustainability
The Company believes it is important to conduct its business in an environmentally, economically, and socially
sustainable manner. In this regard, the Company has an environmental sustainability program which focuses on the
reductions of volatile organic compound (VOC) emissions, reductions of hazardous waste, reductions in water usage,
improved recycling and development programs which involve the elimination or reduction of undesirable chemicals and
solvents in favor of safer and environmentally preferred alternatives. These efforts cross divisional lines and are visible
in the following areas within the Company:
• Facilities through the partnership with local utilities to implement energy reduction initiatives such as energy
efficient lighting, demand response energy management and heating, ventilation and air conditioning
optimization;
• Manufacturing through lean initiatives and waste minimization;
• Product development through specification of environmentally preferred substances;
• Logistics improvements and packaging minimization; and
• Supply chain management through Social, Safety, and Environmental Responsibility audits of suppliers.
The Company also has two existing programs focusing on the community, the Callaway Golf Company Foundation
and the Callaway Golf Company Employee 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 principles of environmental stewardship, the Company believes it is
acting in an environmentally and socially responsible manner.
Intellectual Property
The Company is the owner of approximately 2,700 U.S. and foreign trademark registrations and over 2,000 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 Note 13 “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 “Risk Factors” contained in Item 1A.
Licensing
The Company, in exchange for a royalty fee, licenses its trademarks and service marks to third parties for use on
products such as golf apparel and footwear, golf gloves, umbrellas, prescription eyewear, 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, Latin America,
Europe, Middle East, and Africa, and Sanei International Co., Ltd. for a complete line of men’s and women’s apparel for
distribution in Asia and Asia Pacific countries. With respect to the footwear lines, the Company has a licensing arrangement
with AMG-SF, LLC for a complete line of men’s and women’s golf footwear for distribution in certain retail channels in
the United States and Canada.