Casio 2012 Annual Report Download - page 18

8) Intellectual property
The Group principally uses proprietary technologies, and protects these proprietary technolo-
gies through a combination of patents, registered trade marks and other intellectual property.
The following is a list of accompanying risks.
• Competitors might develop the same technologies as the Group’s own proprietary
technologies
• Denial of approval for a pending patent submitted by a Group member
• Ineffectiveness of measures aimed at preventing the misuse or violation of intellectual
property rights held by a Group member
• Legislation relating to intellectual property might not provide adequate protection for the
Group’s intellectual property
• The Group’s future products and technologies might constitute a violation of another
company’s intellectual property rights
9) Defective products and lawsuits
As a manufacturer and marketer of consumer products, we ensure strict quality control for
our products. To date, we have never been subject to a damaging claim and have never had
our reputation endangered. Even so, it is impossible to ensure that claims regarding product
liability and product safety will not be brought against the Group members in the future.
10) Risks related to information management
The Group maintains personal information and confidential business information relating to
the promotion and development of its business operations. There are in-house rules governing
the use of this information, and each Group company raises awareness of the need for strict
control of such information in its employee training program. However, there is always the
possibility that information may be leaked, and such a leak of information might have a nega-
tive impact on the Group’s business, financial position and earnings performance.
11) Alliances, mergers and strategic investments
The Group may engage in alliances and mergers, or undertake strategic investments, in Japan
or overseas to expand its business operations or raise the efficiency of management. Changes
in the business partner’s management environment, business strategies, or operating environ-
ment might have a negative impact on the Group’s business, financial position and earnings
performance.
12)
Risks arising from fluctuations in foreign exchange rates and interest rates
The Group maintains operations in numerous countries around the world. Consequently,
the Group is substantially affected by exchange rate fluctuations. The Group’s gross profit
might be negatively affected as a result of movements in foreign currencies against the yen.
Moreover, the Group is exposed to risk associated with interest rate changes. These risks
could have an impact on overall operating costs, procurement costs, value of monetary assets
and liabilities (particularly long-term liabilities).
13) Other risks
The following other factors might have an impact on the Group’s business operations in the
future.
• Cyclical trends in the IT sector
• Uncertainties as to whether the required equipment, raw materials, facilities, and
electricity can be procured at an appropriate price
• A decline in the value of securities held by the Group
• Revisions to laws and regulations regarding the accounting standards for retirement
benefits and rapid changes in pension fund operations
• Damage caused by fires, earthquakes and other natural disasters, as well as other accidents
that disrupt operations
• Social unrest caused by wars, terrorist attacks, and epidemics
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CASIO Annual Report 2012
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