Lifetime Fitness 2013 Annual Report Download - page 26

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20
• state licensing or other regulation of our service providers, such as cosmetologists, massage therapists and
registered dietitians; and
• federal and state laws and regulations governing privacy and security of information.
Any changes in such laws or regulations could have a material adverse effect on our financial condition and results
of operations.
We could be subject to claims related to our ancillary health and fitness-related offerings, and the value of our
brand may suffer.
We offer directly or through third parties a variety of ancillary health and fitness-related products and services, such
as nutritional products, blood screenings and other fitness assessments, chiropractic services, and medi-spa services.
These products and services are, or may be subject to, legal and regulatory requirements. We cannot assure you that
there will be no claims against us regarding the ingredients in, manufacture of or results of using our nutritional
products, or any claims against us regarding our provision of other health and fitness-related services or our
relationships with third parties. Furthermore, we cannot assure you that any rights we have under indemnification
provisions and/or insurance policies will be sufficient to cover any losses that might result from such claims. Any
publicity surrounding such claims may negatively impact the value of our brand.
If it becomes necessary to protect or defend our intellectual property rights or if we infringe on the intellectual
property rights of others, we may become involved in costly litigation or be required to pay royalties or fees.
We may have disputes with third parties to enforce our intellectual property rights, protect our trademarks, determine
the validity and scope of the proprietary rights of others or defend ourselves from claims of infringement, invalidity
or unenforceability. We may incur substantial costs and a diversion of resources as a result of such disputes, even if
we win. In the event that we do not win, we may have to enter into royalty or licensing agreements, we may be
prevented from using the marks within certain markets in connection with goods and services that are material to our
business or we may be unable to prevent a third party from using our marks. We cannot assure you that we would be
able to reach an agreement on reasonable terms, if at all. In particular, although we own a federal trademark
registration for use of the LIFE TIME FITNESS® mark in the field of health and fitness centers, we are aware of
entities in certain locations around the country that use LIFE TIME FITNESS, LIFE TIME or other similar marks in
connection with goods and services related to health and fitness. The rights of these entities in such marks may
predate our rights. Accordingly, if we open any centers in the areas in which these parties operate, we may be
required to pay royalties or may be prevented from using the mark in such areas.
Item 1B. Unresolved Staff Comments.
None.