Nautilus 2013 Annual Report Download - page 9

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Patents
Building our intellectual property portfolio is an important factor in maintaining our competitive position in the health and fitness equipment
industry. We have followed a policy of filing applications for U.S. and non-
U.S. patents on utility and design inventions that we deem valuable
to our business.
We own or license patents covering a variety of technologies, some of which are utilized in our variable stride ellipticals, selectorized dumbbells
and recumbent exercise bikes. Nautilus is also the exclusive licensee of patents that cover the Bowflex
®
Revolution home gyms. Patent
protection for these technologies, which are utilized in products sold in both the Direct and Retail segments, extends as far as 2020.
Additionally, we maintain a portfolio of patents related to our Bowflex
®
TreadClimber
®
specialized cardio machines, which are sold primarily
in our Direct segment. The portfolio is comprised of approximately 24 issued U.S. patents covering various product features and other
technologies associated with our TreadClimber
®
products.
A patent covering certain aspects of our TreadClimber
®
products expired in 2013. Additional individual patents covering elements of our
TreadClimber
®
products have expiration dates ranging from 2016 to 2027. Expiration or invalidity of patents within our TreadClimber
®
portfolio could trigger the introduction of similar products by our competitors. Although we view each of the patents within our portfolio as very
valuable, we do not view any single patent as critical to our success or ability to differentiate our TreadClimber
®
products from similar products
that may be introduced by competitors in the future. We regularly monitor commercial activity in our industry to guard against potential
infringement. We protect our proprietary rights vigorously and take prompt, reasonable actions to prevent counterfeit or products and other
infringement on our intellectual property.
BACKLOG
Historically, our backlog has not been a significant factor in our business. Our customer order backlog as of December 31, 2013 and 2012
was
approximately $1.4 million and $0.1 million , respectively.
SIGNIFICANT CUSTOMERS
In 2013, 2012 and 2011, Amazon.com accounted for 11.2%, 11.7% and 11.0%, respectively, of our Net Sales.
ENVIRONMENTAL AND OTHER REGULATORY MATTERS
Our operations are subject to various laws and regulations both domestically and abroad. In the United States, federal, state and local regulations
impose standards on our workplace and our relationship with the environment. For example, the U.S. Environmental Protection Agency,
Occupational Safety and Health Administration and other federal agencies have the authority to promulgate regulations that may impact our
operations. In particular, we are subject to legislation placing restrictions on our generation, emission, treatment, storage and disposal of
materials, substances and wastes. Such legislation includes: the Toxic Substances Control Act; the Resource Conservation and Recovery Act; the
Clean Air Act; the Clean Water Act; the Safe Drinking Water Act; and the Comprehensive Environmental Response and the Compensation and
Liability Act (also known as Superfund). We are also subject to the requirements of the Consumer Product Safety Commission and the Federal
Trade Commission, in addition to regulations concerning employee health and safety matters.
Our operations and certain disposed components of our former Commercial business expose us to claims related to environmental matters.
Although compliance with federal, state, local and international environmental legislation has not had a material adverse effect on our financial
condition or results of operations in the past, there can be no assurance that material costs or liabilities will not be incurred in connection with
such environmental matters in the future.
AVAILABLE INFORMATION
Our common stock is listed on the New York Stock Exchange and trades under the symbol “NLS.”
Our principal executive offices are located at
17750 SE 6th Way, Vancouver, Washington 98683, and our telephone number is (360) 859-
2900. The Internet address of our corporate website
is http://www.nautilusinc.com.
We file annual reports, quarterly reports, current reports, proxy statements and other information with the Securities and Exchange Commission
(the “SEC”)
under the Securities Exchange Act of 1934, as amended. You can inspect and obtain a copy of our reports, proxy statements and
other information filed with the SEC at the offices of the SEC's Public Reference Room at 100 F Street N.E., Washington, D.C. 20549, on
official business days during the hours of 10 a.m. to 3 p.m. EST. Please call the SEC at 1-800-
5