Green Mountain Coffee Roasters (GMCR)

Intellectual Property

The Company owns a number of United States trademarks and service marks that have been registered with the United States Patent and Trademark Office. We anticipate maintaining our trademark and service mark registrations with the United States Patent and Trademark Office. We also own other trademarks and service marks for which we have applications for U.S. registration. The Company has further registered or applied for registration of certain of its trademarks and service marks in the United Kingdom, the European Union, Canada, Japan, the People’s Republic of China, South Korea, Taiwan and other foreign countries.

The Company has licenses to use other marks, all subject to the terms of the agreements under which such licenses are granted.

The Company holds 32 U.S. patents and 69 international patents related to our Keurig brewing and K-Cup technology. Of these, 81 are utility patents and 20 are design patents. We view these patents as very valuable but do not view any single patent as critical to the Company’s success. We own patents that cover significant aspects of our products and certain patents of ours will expire in the future. The two principal patents associated with our current generation K-Cup portion packs will expire in 2012 pending patent applications associated with this technology which, if ultimately issued as patents, would have expiration dates in 2023. Our agreements with our roasters are more than simple patent licenses. Roasters with agreements with the Company have access to and benefit from Keurig’s technology and distribution network and we believe these benefits will help us to maintain royalty revenue irrespective of our patent status.

We have diligently protected our proprietary system through the use of domestic and international patents and monitor our competitors accordingly. In January 2007, we filed a patent infringement lawsuit against Kraft Foods, Inc., Kraft Foods Global, Inc. and Tassimo Corporation (collectively “Kraft”) in the United States District Court for the District of Delaware asserting that Kraft’s T DISC single-serve beverage cartridges infringe upon Keurig’s United States Patent number 6,607,762. In October 2008, subsequent to the Company’s year end, we entered into a Settlement and License Agreement to completely settle the patent litigation with Kraft. Pursuant to the terms of the Settlement and License Agreement, Kraft paid $17 million on October 31, 2008 to the Company and Keurig has granted to Kraft and its affiliates a limited, non exclusive, perpetual, worldwide, fully paid up license of Keurig’s United States Patents Numbered 6,607,762 (the “762 Patent”) and 7,377,162 (the “162 Patent”), and United States and foreign counterpart patents connected to the 762 Patent or 162 Patent, for use in connection with the manufacture, distribution and sale of beverage brewing machines and certain beverage filter cartridges.

Intellectual Property

The Company owns a number of United States trademarks and service marks that have been registered with the United States Patent and Trademark Office. We anticipate maintaining our trademark and service mark registrations with the United States Patent and Trademark Office. We also own other trademarks and service marks for which we have applications for U.S. registration. The Company has further registered or applied for registration of certain of its trademarks and service marks in the United Kingdom, the European Union, Canada, Japan, the People’s Republic of China, South Korea, Taiwan and other foreign countries.

The Company has licenses to use other marks, all subject to the terms of the agreements under which such licenses are granted.

The Company holds 26 U.S. patents and 65 international patents related to our Keurig brewing and K-Cup technology. Of these, 72 are utility patents and 19 are design patents. We view these patents as very valuable but do not view any single patent as critical to the Company’s success.

Intellectual Property

GMCR is the owner of certain United States trademarks and service marks that have been registered with the United States Patent and Trademark Office. We anticipate maintaining our trademark and service mark registrations with the United States Patent and Trademark Office. We are also the owners of other trademarks and service marks for which we have applications for U.S. registration. GMCR has further registered or applied for registration of certain of its trademarks and service marks in the United Kingdom, the European Union, Canada, the People’s Republic of China, South Korea and Taiwan. Other foreign trademark and service mark applications are also pending.

Green Mountain Coffee has licenses to use other marks, all subject to the terms of the agreements under which such licenses are granted.

As a technology and innovation leader in the coffee industry, Keurig views its patents as very valuable but does not view any single patent as critical to its success. Keurig holds 24 U.S. patents and 58 international patents. Of these, 63 are utility patents and 19 are design patents. In addition to its patents, Keurig has a number of trademarks, including its cup and star logo, “Keurig,” “K-Cup,” “Keurig Brewed,” “Deliciously Simple” and “Coffee House Taste by the Cup.”