Plantronics 2009 Annual Report Download - page 18

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10
We procure materials to meet forecasted customer requirements. Special products and certain large orders are quoted for delivery
after receipt of orders at specific lead times. We maintain minimum levels of finished goods based on market demand in addition to
inventories of raw materials, work in process, and sub-assemblies and components. We write-down inventory items determined to be
either excess or obsolete.
ENVIRONMENTAL MATTERS
We have complied with the European Union and other Directives on the Restrictions of the use of Certain Hazardous Substances in
Electrical and Electronic Equipment (“RoHS”) and on Waste Electrical and Electronic Equipment requirements. Additionally, we are
compliant with the RoHS initiatives in China and Korea.
We are subject to various federal, state, local and foreign environmental laws and regulations, including those governing the use,
discharge and disposal of hazardous substances in the ordinary course of our manufacturing process. We believe that our current
manufacturing operations comply in all material respects with applicable environmental laws and regulations. However, it is possible
that future environmental legislation may be enacted or current environmental legislation may be interpreted to create environmental
liability with respect to our facilities, operations, or products.
INTELLECTUAL PROPERTY
We maintain a program of seeking patent protection for our technologies when we believe it is commercially appropriate. As of
March 31, 2009, we had 475 worldwide patents in force, expiring between 2009 and 2033.
Our success will depend in part on our ability to obtain patents and preserve other intellectual property rights covering the design and
operation of our products. We intend to continue to seek patents on our inventions when commercially appropriate. The process of
seeking patent protection can be lengthy and expensive, and there can be no assurance that patents will be issued for currently pending
or future applications or that our existing patents or any new patents issued will be of sufficient scope or strength or provide
meaningful protection or any commercial advantage to us. We may be subject to, or may initiate, litigation or patent office
interference proceedings, which may require significant financial and management resources. The failure to obtain necessary licenses
or other rights or the advent of litigation arising out of any such intellectual property claims could have a material adverse effect on
our operations.
We own trademark registrations in the U.S. and a number of other countries with respect to the Plantronics, Clarity and Altec Lansing
trademarks as well as the names of many of our products and product features. We currently have U.S. and foreign trademark
applications pending in connection with certain new products and product features. We also attempt to protect our trade secrets and
other proprietary information through comprehensive security measures, including agreements with customers and suppliers, and
proprietary information agreements with employees and consultants. We may seek copyright protection where we believe it is
applicable. We own a number of domain name registrations and intend to seek more as appropriate. There can be no assurance that
our existing or future copyright registrations, trademarks, trade secrets or domain names will be of sufficient scope or strength or
provide meaningful protection or any commercial advantage to us.
EMPLOYEES
On March 31, 2009, we employed approximately 3,600 people worldwide, including approximately 1,900 and 700 employees at our
manufacturing facilities in Tijuana, Mexico and Suzhou, China, respectively. To our knowledge, no employees are currently covered
by collective bargaining agreements. We experienced a brief work stoppage in our Suzhou, China plant as a result of our March 2009
restructuring announcement that we will be discontinuing Bluetooth production at this location in fiscal 2010. That stoppage was
resolved, and we believe that in China, and throughout the world, our employee relations are good.