Sunbeam 2007 Annual Report Download - page 40

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our individual per occurrence self-insured retention. We cannot assure you, however, that our future product
liability experience will be consistent with our past experience.
See note 11 (Commitments and Contingencies) of the notes to our consolidated financial statements
contained in our Annual Report on Form 10-K (which is incorporated by referenced herein) for a discussion of
these and other regulatory and litigation-related matters.
If we fail to adequately protect our intellectual property rights, competitors may manufacture and market
products similar to ours, which could adversely affect our market share and results of operations.
Our success with our proprietary products depends, in part, on our ability to protect our current and future
technologies and products and to defend our intellectual property rights. If we fail to adequately protect our
intellectual property rights, competitors may manufacture and market products similar to ours. Our principal
intellectual property rights include our trademarks. The principal trademarks in Outdoor Solutions are
Campingaz®, Coleman®,K2
®, Marmot®, Rawlings®, Sevylor®, Shakespeare®, Stearns®and Völkl®. Other
trademarks in that segment include Abu Garcia®, Adio®, All Star®, Atlas™, Berkley®, Coleman®Exponent®,
deBeer®, Ex Officio®, Fenwick®, Gait by deBeer®, Gulp!®, Hodgman®,JT
®, JRC™, Kahura®, Line®, Little
Bear®, Mad Dog Gear®, Madshus®, Marker®, Miken®, Mitchell®, Morrow®, Penn®, Pflueger®, Planet Earth®,
Ride®, Roadtrip®, Sevenstrand®, Sospenders®, Spiderwire®, Stren®, Tubbs®, Trilene®, Ugly Stik®, Worth®,
Xtools®and 5150 Snowboards®. In the Consumer Solutions segment, the principal trademarks consist of
Bionaire®, Crock Pot®, FoodSaver®, Health o meter®, Holmes®, Mr. Coffee®, Oster®, Patton®, Rival®,
Seal-a-Meal®, Sunbeam®and VillaWare®. Our other brands used include Health at Home®, Mixmaster®,
Osterizer®, Hydrosurge®and The Blanket with a Brain®. In our Branded Consumables segment, these include
the Ball®, Bee®, Bernardin®, Bicycle®, BRK®, Crawford®, Diamond®, First Alert®, Forster®, Hoyle®, Kerr®,
KEM®, Lehigh®, Leslie-Locke®, Loew-Cornell®and Pine Mountain®brand names.
We also hold numerous design and utility patents covering a wide variety of products. We cannot be sure
that we will receive patents for any of our patent applications or that any existing or future patents that we
receive or license will provide competitive advantages for our products. We also cannot be sure that competitors
will not challenge, invalidate or avoid the application of any existing or future patents that we receive or license.
In addition, patent rights may not prevent our competitors from developing, using or selling products that are
similar or functionally equivalent to our products.
We may not be able to implement or operate successfully and without interruptions the operating software
systems and other computer technologies that we depend on to operate our business, which could
negatively impact or disrupt our business.
We are in the process of selecting or implementing new operating software systems within a number of our
business segments and complications from these projects could cause considerable disruptions to our business.
While significant testing will take place and the rollout will occur in stages, the period of change from the old
system to the new system will involve risk. Application program bugs, system conflict crashes, user error, data
integrity issues, customer data conflicts and integration issues among our legacy systems all pose potential risks.
Implementing data standards such as RFID, which our largest customers are requiring that we use, involves
significant effort across the entire organization. Any problems with or delays of this implementation could
impact our ability to do business and could result in higher implementation costs and reallocation of human
resources.
We rely on other companies to maintain some of our information technology infrastructure. Should they fail
to perform due to events outside our control, it could affect our service levels and threaten our ability to conduct
business. In addition, natural disasters such as hurricanes may disrupt our infrastructure and our disaster recovery
process may not be sufficient to protect against loss.
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