Garmin 2010 Annual Report Download - page 32

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Backlog
Our sales are generally of a consumer nature and there is a relatively short cycle between order and
shipment. Therefore, we believe that backlog information is not material to the understanding of our business.
We typically ship most orders within 72 hours of receipt.
Intellectual Property
Our success and ability to compete is dependent in part on our proprietary technology. We rely on a
combination of patent, copyright, trademark and trade secret laws, as well as confidentiality agreements, to
establish and protect our proprietary rights. In addition, Garmin often relies on licenses of intellectual property for
use in its business. For example, Garmin obtains licenses for digital cartography technology for use in our products
from various sources.
As of Jaua , , Gais oldide IP potfolio iludes oe 50 patents and 300 trademark
registrations. Garmin was selected as a constituent of the 2010/2011 Ocean Tomo® 300 Patent Index which
recognizes companies with high intellectual property value. We believe that our continued success depends on the
intellectual skills of our employees and their ability to continue to innovate. Garmin will continue to file and
prosecute patent applications when appropriate to attept to potet Gais ights i its popieta
technologies.
There is no assurance that our current patents, or patents which we may later acquire, may successfully
withstand any challenge, in whole or in part. It is also possible that any patent issued to us may not provide us with
any competitive advantages, or that the patents of others will preclude us from manufacturing and marketing
certain products. Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy
aspects of our products or to obtain and use information that we regard as proprietary. Litigation may be
necessary in the future to enforce our intellectual property rights, to protect our trade secrets, to determine the
validity and scope of the proprietary rights of others or to defend against claims of infringement or invalidity.
Regulations
The telecommunications industry is highly regulated, and the regulatory environment in which Garmin
operates is subject to change. In accordance with Federal Couiatios Coissio FCC ules ad
regulations, wireless transceiver and cellular handset products are required to be certified by the FCC and
opaale authoities i foeig outies hee the ae sold. Gais poduts sold i Euope ae required to
comply with relevant directives of the European Commission. A delay in receiving required certifications for new
poduts, o ehaeets to Gais poduts, o losig etifiatio fo Gais eistig poduts ould
adversely affect our usiess. I additio, aiatio poduts that ae iteded fo istallatio i tpe etifiated
aiaft ae euied to e etified  the FAA, its Euopea outepat, the Euopea Aiatio Safet Age,
and other comparable organizations before they can be used in an aircraft.
Beause Gai Copoatio, oe of the Copas piipal susidiaies, is loated i Taia, foeig
exchange control laws and regulations of Taiwan with respect to remittances into and out of Taiwan may have an
impat o Gais opeatios. The Taia Foeig Ehage Cotol Statute, ad egulatios theeude,
provide that all foreign exchange transactions must be executed by banks designated to handle such business by
the Ministry of Finance of Taiwan and by the Central Bank of the Republic of China (Taiwan), also referred to as the
CBC. Current regulations favor trade-related foreign exchange transactions. Consequently, foreign currency
earned from exports of merchandise and services may now be retained and used freely by exporters, while all
foreign currency needed for the import of merchandise and services may be purchased freely from the designated
foreign exchange banks. Aside from trade-related foreign exchange transactions, Taiwan companies and residents
may, without foreign exchange approval, remit outside and into Taiwan foreign currencies of up to $50 million and
$5 million respectively, or their equivalent, each calendar year. Currency conversions within the limits are
processed by the designated banks and do not have to be reviewed and approved by the CBC. The above limits