Unilever 2003 Annual Report Download - page 17

14 Unilever Annual Report & Accounts and Form 20-F 2003
About Unilever
parties concerned that are required to be reported in 2003 or
the preceding two years. In approximately 40 countries, our
associated company, JohnsonDiversey Inc., acts as Unilever’s sole
and exclusive sales agent for professional channels, in return for
which it receives an agency fee. Information concerning
guarantees given by the Group is stated in note 24 on page 112
and under ’Mutual guarantee of borrowings’ on page 154.
Guarantees are also given within the Group by the parent
companies, as described on pages 147 and 150.
Intellectual property
We have a large portfolio of patents and trademarks, and we
conduct some of our operations under licences which are based
on patents or trademarks owned or controlled by others. We are
not dependent on any one patent or group of patents. We use
our best efforts to protect our brands and technology.
Description of our properties
We have interests in properties in most of the countries where
there are Unilever operations. However, none is material in the
context of the Group as a whole. The properties are used
predominantly to house production and distribution activities
and as offices. There is a mixture of leased and owned property
throughout the Group. There are no environmental issues
affecting the properties which would have a material impact
upon the Group. The Directors take the view that any difference
between the market value of properties held by the Group and
the amount at which they are included in the balance sheet is not
significant. See the schedule of principal group companies and
fixed investments on page 142 and details of tangible fixed assets
in note 10 on page 91.
Legal and arbitration proceedings and regulatory matters
We are not involved in any legal or arbitration proceedings and
do not have any obligations under environmental legislation
which we expect to lead to a material loss in the context of the
Group results. None of our Directors or Officers are involved in
any such material legal proceedings.
Unilever has businesses in many countries and from time to
time these are subject to investigation by competition and other
regulatory authorities. The most significant of these in recent
years concerns ice cream distribution in Europe, notably the issues
of outlet and cabinet exclusivity. In October 2003, the Court of
First Instance in Luxembourg ruled in favour of the European
Commission’s decision banning Unilever’s Irish ice cream business,
HB Ice Cream, from seeking freezer cabinet exclusivity for their
products in the Irish market. HB Ice Cream has submitted an
appeal against the decision of the Court of First Instance
in Luxembourg.
Government regulation
Unilever businesses are governed, in particular, by national laws
designed to ensure that their products may be safely used for
their intended purpose and that their labelling and advertising
complies in all respects with relevant regulations. The introduction
of new products and ingredients and processes is, specifically,
subject to rigorous controls. Unilever businesses are further
regulated by data protection and anti-trust legislation. Important
regulatory bodies in respect of our businesses include the
European Commission and the US Food and Drug Administration.