Toshiba 2010 Annual Report Download - page 79

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17
10. Others
(1) Measures against counterfeit products
While the Group protects and seeks to enhance the value of the Toshiba brand, counterfeit products created by third parties
are found worldwide. While the Group makes every effort to prevent counterfeit products, the heavy circulation of counter-
feit products may dilute the value of the Toshiba brand, and the Group’s net sales may be adversely affected.
(2) Protection of intellectual property rights
The Group makes every effort to secure intellectual property rights. However, in some regions, it may not be possible to
secure sufficient protection.
The Group also uses the intellectual property of third parties pursuant to licenses. It is possible that the Group may fail to
receive the necessary third-party licenses for new technology or is unable to obtain the renewal of existing party licenses or
receives them on unfavorable terms.
In addition, it is also possible that a suit or such similar action or proceeding may be brought against the Group in respect
of intellectual property rights or that the Group may itself have to file a suit in order to protect its intellectual property
rights. Such lawsuits may require time, costs and other management resources. As a result of the outcome of these rulings,
the Group may not be able to use important technology, or the Group may be found to be liable for damages.
(3) Political, economic and social conditions
The Group undertakes global business operations. Any changes in political, economic, and social conditions and policies,
legal or regulatory changes and exchange rate fluctuations, in Japan or overseas, may impact market demand and the Group’s
business operations. The Group makes every effort to avoid these risks and to reduce any impact when such risks emerge by
continuously monitoring changes in the situation in each region where the Group operates, including legal and regulatory
changes, and by promptly initiating countermeasures.
(4) Natural disasters
Most of the Group’s Japanese production facilities are located in the Keihin region of Japan, which includes Tokyo,
Kawasaki City, Yokohama City and the surrounding area, while key semiconductor production facilities are located in
Kyushu, Tokai, Hanshin and Tohoku. The Group is currently expanding its production facilities in Asia. As a result, any
occurrence of a wide-scale disaster, terrorism or epidemic illness, such as a new type of flu, in any of these areas could have a
significant adverse effect on the Group’s results.
Additionally, while the Group takes precautionary measures, such as the construction of earthquake-resistant buildings at
production facilities, large-scale disasters, such as earthquakes or typhoons, in regions where production sites are located may
damage or destroy production capabilities and cause operational and transportation interruptions or other similar disrup-
tions, which could affect production capabilities significantly.
In order to manage these risks, the Group established the “Business Continuity Plan (BCP)” as part of its continuing
effort to avoid or minimize any impact from such disasters.