Epson 2010 Annual Report Download - page 20

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19
between those companies and Epson in transactions or competing businesses. In particular, Seiko Holdings
entrusts a large portion of the manufacturing of its watches, its primary business, to Epson.
24. Laws and regulations pose risks for Epson
Epson has businesses in which products require permission or licenses under laws and regulations, such as its
plastic corrective lenses, which are subject to regulations of relevant authorities as they are considered medical
equipment in Japan. Such products do not represent a high percentage of Epson’ s overall sales or profit, but
Epson is subject to the permission and other regulations of relevant authorities in its manufacturing and
manufacturing/sales of those products in Japan.
Also, because the plastic corrective lenses, which are manufactured by Epson, are sold in the United States,
Europe and Asia by a distributor subsidiary of Seiko Holdings, Epson is also subject to certain regulations in
these regions. For example, relevant authorities in the United States generally make it compulsory to carry out
tests of new products and to keep designated records relating to those products.
Regulations governing medical devices in Japan, the United States and other regions have changed in the past,
so there is a possibility that they will change again in the future. If they do, there is a possibility the changes
might impede the manufacture and sale of Epson’ s products and thereby adversely affect Epson’ s results.