Merck is engaged in legal proceedings and government investigations, the outcome of which cannot currently be predicted. We also continue to bear the risks from certain proceedings against companies of the Generics group that we sold to Mylan in 2007. Thus Merck continues to be responsible for example for risks arising from cases concerning drug pricing in the United States. In addition, the Merck Serono division is involved in a licensing dispute in Israel as well as a dispute with a former sales partner in Italy. The company has taken all possible measures to protect its own legal position. (More details can be found starting in Note [30] “Provisions”).
Should individual products of the Merck Group prove to be defective and/or display undesirable side effects, this could lead to possible compensation claims and legal proceedings owing to product liability.
As a research-based company, Merck has a valuable portfolio of industrial property rights, such as patents and brand names. This can become the target of attacks and infringements. We have taken the necessary precautions to identify threats and defend our rights where necessary. Generally, Merck endeavors to prevent legal risks from arising.
A compliance program applies for our employees worldwide, which enjoins them to comply with laws and guidelines, and provides them with the relevant training and support. The core of the program is the Merck Code of Conduct, which defines ethical behavior guidelines. This is complemented by a training and testing program as well as a global network of compliance officers.
Insofar as possible and sensible, the company limits liability and damage risks through insurance coverage, the type and scope of which is continually adjusted to current requirements.
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