Dolby on its Chinese Enforcement Activities

From Dolby's (DLB) fiscal Q3 2006 earnings conference call transcript:

Question-and-Answer Section

Ralph Schackart - William Blair & Co.

Good afternoon. Two questions for you. First and foremost can you talk about your Chinese enforcement activities and the progress that you are making there? Additionally too, is you looked out over the horizon into fiscal '07. Did you factor the consumer into that type of guidance? Were you taking a conservative stance there and can you give us an update on any implications the slowdown with the consumers affecting on the business? Thank you.

Marty Jaffe – EVP Business Affairs

I'll take the compliance side of this and I'll pass off the consumer side. Compliance program continues to remain a very top, high priority for us and over the last several quarters we have augmented our compliance team. As we move forward, we will continue to increase our attention, efforts and resources in that area. This includes moving more licenses account managers to China and other parts of the world to be closer to our licensees and the IT manufacturers.

We'll continue to improve our on our tracking of technologies by focusing on the information rights under our license agreements and by better analyzing the information that's available to us and increasing our enforcement activities.

So that's including everything from licensing audits to being tough with known offenders to working with local authorities and other parties to identify unlicensed manufacturers. So as I said, it's a high priority, we'll continue to work on this and we'll take some time and continue to improve over time.

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