Rayovac 2012 Annual Report Download - page 16

We continually evaluate our manufacturing facilities’ capacity and related utilization. As a result of such
analyses, we have closed a number of manufacturing facilities during the past five years. In general, we believe
our existing facilities are adequate for our present and foreseeable needs.
Research and Development
Our research and development strategy is focused on new product development and performance
enhancements of our existing products. We plan to continue to use our strong brand names, established customer
relationships and significant research and development efforts to introduce innovative products that offer
enhanced value to consumers through new designs and improved functionality.
In our fiscal years ended September 30, 2012, 2011 and 2010, we invested $33.1 million, $32.9 million and
$31.0 million, respectively, in product research and development.
Patents and Trademarks
We own or license from third parties a significant number of patents and patent applications throughout the
world relating to products we sell and manufacturing equipment we use. We hold a license that expires in March
2022 for certain alkaline battery designs, technology and manufacturing equipment from Matsushita Electrical
Industrial Co., Ltd. (“Matsushita”), to whom we pay a royalty.
We also use and maintain a number of trademarks in our business, including DINGO, JUNGLETALK,
MARINELAND, RAYOVAC, REMINGTON, TETRA, VARTA, 8IN1, CUTTER, HOT SHOT, GARDEN
SAFE, NATURE’S MIRACLE, REPEL, SPECTRACIDE, SPECTRACIDE TERMINATE, GEORGE
FOREMAN, RUSSELL HOBBS and BLACK & DECKER. We seek trademark protection in the U.S. and in
foreign countries by all available means, including registration.
As a result of the October 2002 sale by VARTA AG of substantially all of its consumer battery business to
us and VARTA AG’s subsequent sale of its automotive battery business to Johnson Controls, Inc. (“Johnson
Controls”), we acquired rights to the VARTA trademark in the consumer battery category and Johnson Controls
acquired rights to the trademark in the automotive battery category. VARTA AG continues to have rights to use
the trademark with travel guides and industrial batteries and VARTA Microbattery GmbH has the right to use the
trade mark with micro batteries. We are party to a Trademark and Domain Names Protection and Delimitation
Agreement that governs ownership and usage rights and obligations of the parties relative to the VARTA
trademark.
As a result of the common origins of the Remington Products, L.L.C. (“Remington Products”) business we
acquired in September 2003 and the Remington Arms Company, Inc. (“Remington Arms”), the REMINGTON
trademark is owned by us and by Remington Arms each with respect to its principal products as well as
associated products. Accordingly, we own the rights to use the REMINGTON trademark for electric shavers,
shaver accessories, grooming products and personal care products, while Remington Arms owns the rights to use
the trademark for firearms, sporting goods and products for industrial use, including industrial hand tools. In
addition, the terms of a 1986 agreement between Remington Products and Remington Arms provides for the
shared rights to use the REMINGTON trademark on products which are not considered “principal products of
interest” for either company. We retain the REMINGTON trademark for nearly all products which we believe
can benefit from the use of the brand name in our distribution channels.
We license the Black & Decker brand in North America, Latin America (excluding Brazil) and the
Caribbean for four core categories of household appliances: beverage products, food preparation products,
garment care products and cooking products. Russell Hobbs has licensed the Black & Decker brand since 1998
for use in marketing various household small appliances. In July 2011, Russell Hobbs and The Black & Decker
Corporation (“BDC”) extended the trademark license agreement for a fourth time through December 2015.
6