Rayovac 2015 Annual Report Download - page 24

BREADMAN, JUICEMAN, BLACK & DECKER, TETRA, 8IN1, DINGO, NATURE’S MIRACLE, WILD
HARVEST, MARINELAND, FURMINATOR, LITTERMAID, BIRDOLA, HEALTHY HIDE, DIGEST-EEZE,
IAMS, EUKANUBA, SPECTRACIDE, CUTTER, HOT SHOT, REAL KILL, ULTRA KILL, BLACK FLAG,
LIQUID FENCE, RID-A-BUG, TAT, GARDEN SAFE, REPEL, KWIKSET, WEISER, BALDWIN,
NATIONAL HARDWARE, FANAL, PFISTER, TELL, ARMOR ALL, STP, and A/C PRO. We seek trademark
protection in the U.S. and in foreign countries.
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.
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 and 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. We have licensed the Black and Decker brand since 1998 for use in
marketing various household small appliances. In July 2014, Spectrum Brands and The Black and Decker
Corporation (“BDC”) extended the trademark license agreement through December 2018. Under the agreement
as extended, Spectrum Brands agreed to pay BDC royalties based on a percentage of sales, with minimum annual
royalty payments of $15.0 million through calendar year 2018. The agreement also requires us to comply with
maximum annual return rates for products. If BDC does not agree to renew the license agreement, we have
18 months to transition out of the brand name. No minimum royalty payments will be due during such transition
period. BDC has agreed not to compete in the four core product categories for a period of five years after the end
of the transition period following termination of the license agreement. Upon request, BDC may elect to extend
the license to use the Black & Decker brand to certain additional product categories. BDC has approved several
extensions of the license to additional categories and geographies.
Through the acquisition of the residential hardware and home improvement business (the “HHI Business”),
we own the patented SmartKey technology, which enables customers to easily rekey their locks without hiring a
locksmith.
We own a 56% interest in Shaser, Inc. Through this ownership we have patented technology that is used in
our i-Light and i-Light Reveal product line.
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