Dow Chemical 2014 Annual Report Download - page 40

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16
RESEARCH AND DEVELOPMENT
The Company is engaged in a continuous program of basic and applied research to develop new products and processes, to
improve and refine existing products and processes, and to develop new applications for existing products. Research and
development expenses were $1,647 million in 2014, $1,747 million in 2013 and $1,708 million in 2012. At December 31,
2014, the Company employed approximately 6,200 people in various research and development activities.
PATENTS, LICENSES AND TRADEMARKS
The Company continually applies for and obtains U.S. and foreign patents and has a substantial number of pending patent
applications throughout the world. At December 31, 2014, the Company owned 4,210 active U.S. patents and 17,311 active
foreign patents as follows:
Patents Owned at December 31, 2014
United
States Foreign
Agricultural Sciences 855 3,485
Consumer Solutions 1,070 3,167
Infrastructure Solutions 859 4,764
Performance Materials & Chemicals 490 2,328
Performance Plastics 807 3,276
Corporate 129 291
Total 4,210 17,311
Remaining Life of Patents Owned at December 31, 2014
United
States Foreign
Within 5 years 937 2,962
6 to 10 years 1,000 4,786
11 to 15 years 1,199 7,031
16 to 20 years 1,074 2,532
Total 4,210 17,311
Dow’s primary purpose in obtaining patents is to protect the results of its research for use in operations and licensing. Dow is
also party to a substantial number of patent licenses and other technology agreements. The Company had revenue related to
patent and technology royalties totaling $388 million in 2014, $327 million in 2013 and $448 million in 2012. The Company
incurred royalties to others of $170 million in 2014, $198 million in 2013 and $185 million in 2012. Dow also has a substantial
number of trademarks and trademark registrations in the United States and in other countries, including the “Dow in Diamond”
trademark. Although the Company considers that its patents, licenses and trademarks in the aggregate constitute a valuable
asset, it does not regard its business as being materially dependent on any single or group of related patents, licenses or
trademarks.