Dow Chemical 2015 Annual Report Download - page 26

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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 $1,598 million in 2015, $1,647 million in 2014 and $1,747 million in 2013. At December 31,
2015, the Company employed approximately 6,800 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, 2015, the Company owned 4,651 active U.S. patents and 19,541 active
foreign patents as follows:
Patents Owned at December 31, 2015 United
States Foreign
Agricultural Sciences 940 3,886
Consumer Solutions 1,187 3,686
Infrastructure Solutions 950 5,185
Performance Materials & Chemicals 363 1,994
Performance Plastics 1,102 4,559
Corporate 109 231
Total 4,651 19,541
Remaining Life of Patents Owned at December 31, 2015
United
States Foreign
Within 5 years 969 3,053
6 to 10 years 1,023 5,540
11 to 15 years 1,479 8,209
16 to 20 years 1,180 2,739
Total 4,651 19,541
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 $357 million in 2015, $388 million in 2014 and $327 million in 2013. The Company
incurred royalties to others of $198 million in 2015, $170 million in 2014 and $198 million in 2013. 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.