TiVo 2003 Annual Report Download - page 10

Table of Contents
• U.S. patent number 6,233,389, entitled Multimedia Time Warping System, originally filed in July of 1998, which describes many of the key
inventions associated with the TiVo-enabled DVR software and hardware design. We refer to this as the "TimeWarp" patent. Key inventions
claimed in the patent include a method for recording one program while playing back another or watching a program as it is recording, often
referred to as time-shifting the program; a method for efficient and low-cost processing and synchronizing of the various multimedia streams in a
television signal such as video, audio, and closed-captioning, and a storage format that easily supports advanced TrickPlay capabilities.
Several of our early patent applications have been examined and claims allowed by the U.S. Patent and Trademark Office. In addition, certain of our
patents have been examined and approved under the terms of the Patent Convention Treaty, which provides for nominal acceptance of the patent in countries
that are signatories to the treaty, which includes most countries in the world. We are currently filing for acceptance in key countries around the world.
We have secured U.S. registrations for the marks "TiVo," the TiVo Logo, TiVo Smile Design, "TiVo Central," "Can't Miss TV," "Ipreview,"
"TiVoMatic," "TV Your Way," "What you want, when you want it," "TiVolution," and the Jump Logo. We have filed many other trademark applications
covering substantially all of our trade dress, logos, and slogans, including: "Active Preview," "DIRECTIVO," "Overtime Scheduler," "Personal TV,"
"Primetime Anytime," "Season Pass," "See it, want it, get it," "Thumbs Down" (logo and text), "Thumbs Up" (logo and text), "TiVo Series2" (logo and text),
"Home Media Option," "Wishlist," and "Life is too short for bad TV." These applications are currently pending with the U.S. Patent and Trademark Office.
Additionally, we have international trademark applications pending for several of these trademarks. We have licensed the use of our name and logo to some of
our customers and consumer electronics manufacturers.
We anticipate ongoing progress in our establishment of a defensible and useful intellectual property portfolio; however, there can be no assurance that
current patent applications will ever be allowed or granted. See "Management's Discussion and Analysis of Financial Condition and Results of Operations —
Factors that May Affect Future Operating Results – Our success depends on our ability to secure and protect patents, trademarks, and other proprietary rights"
for additional information concerning our intellectual property.
Privacy Policy
We have adopted a privacy policy, which we make available on our website and deliver to each new subscriber to the TiVo service. This policy was last
updated in August 2003 to cover new commerce features that we plan to introduce in the future. This policy explains that we collect certain types of
information such as anonymous viewing and diagnostic information, but all viewing information that is linked or associated with an individual identity will
not be disclosed without the viewer's affirmative consent. We further give subscribers the ability to "opt-out" from the collection of anonymous viewing
information and diagnostic information log files.
We have designed a system that ensures that any viewing information transmitted from our receiver is anonymous on the receiver and remains
unidentifiable to a particular viewer (known as anonymous viewing information), unless that subscriber affirmatively consents to such identification before
any viewing data leaves the receiver. Anonymous viewing information is collected separately from any information that identifies a viewer personally. As a
result, unless subscribers affirmatively consent to the collection of personally identifiable viewing information before the file containing such viewing
information is transmitted from the receiver to our distribution servers, we have no way of matching anonymous viewing information with particular
subscribers. We may be able to use this anonymous information to tell a broadcast or advertising client the percentage of our viewers that recorded a
particular program or advertisement, but we will not know, nor be able to tell the client, which of our viewers did so, unless a viewer decides to provide that
information.
Employees
At April 1, 2004, we employed approximately 304 employees, including 34 in service operations, 180 in research and development, 30 in sales and
marketing, and 60 in general and administration. We also employ, from time to time, a number of temporary and part-time employees as well as consultants
on a contract basis. At April 1, 2004, we employed 61 such persons. Our future success will depend in part on our ability to attract, train, retain, and motivate
highly qualified employees. We may not be successful in attracting and retaining such personnel. Our employees are not represented by a collective
bargaining organization and we have never experienced a work stoppage or strike. Our management considers employee relations to be good.
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