Dell 2001 Annual Report Download - page 14

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Table of Contents
Strength of Infrastructure
The Company's continued success and profitability partly depends on its ability to continue to improve its infrastructure (particularly personnel and
information systems) in order to increase operational efficiencies. There can be no assurance that the Company can continue to make sufficient improvements
to maintain its competitive advantage.
Patent Rights
The Company's continued business success may be largely dependent on its ability to obtain licenses to intellectual property developed by others on
commercially reasonable and competitive terms. If the Company or its suppliers are unable to obtain desirable technology licenses, the Company could be
prohibited from marketing products, could be forced to market products without desirable features or could incur substantial costs to redesign its products,
defend legal actions or pay damages.
Environmental Laws and Regulation
Certain of the Company's operations are subject to regulation pursuant to various federal, state and international laws governing the environment. The
Company's compliance with such laws has not had a material effect upon the Company's financial position or operations. The Company does not anticipate
that such laws will have a material adverse effect on the Company in the future. However, no assurance can be given that such laws, or any laws enacted in
the future, will not have a material adverse effect on the Company.
Equity Investments
The Company has made, and continues to evaluate and make, strategic equity investments in privately held technology companies. Because these companies
are typically early-stage ventures with either unproven business models, products that are not yet fully developed or products that have not yet achieved
market acceptance, these investments are inherently risky. Many factors outside the Company's control determine whether or not the Company's investments
will be successful. Such factors include the ability of a company to obtain additional private equity financing, to access the public capital markets, to effect a
sale or merger, or to achieve commercial success with its products or services. The Company currently anticipates that it will make minimal additional
investments in fiscal 2003 and will focus on managing its current investments. Nonetheless, there can be no assurance that the Company's existing
investments or any new investments will be successful or that the Company will be able to recover its net basis in the investments.
Trademarks and Service Marks
Unless otherwise noted, trademarks appearing in this Report are trademarks of the Company. The Company disclaims proprietary interest in the marks and
names of others.
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