Merck is engaged in legal proceedings and government investigations, the outcome of which cannot currently be predicted; Merck also continues to bear the risks from certain proceedings against companies of the Generics group that Merck sold to Mylan. Thus Merck continues to be responsible for risks arising from cases concerning drug pricing in the United States and the United Kingdom. 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 information can be found in the Notes of the Consolidated Financial Statements.
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. Merck has taken the necessary precautions to identify threats and defend its rights where necessary. Generally, Merck endeavors to prevent legal risks from arising.
Employees participate worldwide in a compliance program that 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 supplemented by an intranet-based training and testing program, as well as by employees in a global network of compliance officers. Insofar as possible and practical, the company limits liability and damage risks through insurance coverage, the type and scope of which is continually adjusted to current requirements.
