Classmates.com 2008 Annual Report Download - page 22

Table of Contents
We license from third-parties a number of our software applications and components, including applications for our billing, customer
support, advertising and database systems, our client and server applications, and portions of our dial-up Internet access accelerator services.
These licenses generally have terms ranging from several years to perpetual.
Government Regulations
We are subject to a number of international, federal, state and local laws and regulations, including, without limitation, those relating to
taxation, bulk email or "spam," advertising, user privacy, data protection, and consumer protection. In addition, proposed laws and regulations
relating to the foregoing are being debated and considered for adoption in the U.S. and other countries, and such legislation could be passed in
the future. For additional information, see "Risk Factors," which appears in Item 1A of this Annual Report on Form 10-K.
Proprietary Rights
Our trade names, trademarks, service marks, patents, copyrights, domain names, and trade secrets are important to the success of our
business. In particular, we view our primary trademarks as critical to our success. We principally rely upon patent, trademark, copyright, trade
secret, and contract laws to protect our proprietary rights. We also license some of our intellectual property rights, including the Mercury Man
logo, to third-parties. We continuously assess whether to seek patent and other intellectual property protections for those aspects of our business
and technology that we believe constitute innovations providing competitive advantages. We generally enter into confidentiality or license
agreements with our employees, consultants and corporate partners, and generally control access to, and distribution of, our technologies,
documentation and other proprietary information. We consider our United Online, FTD, Interflora, Classmates, NetZero, Juno, and MyPoints
trademarks to be very valuable assets, and these trademarks have been registered in the U.S. and, in certain cases, in other countries as well.
International Operations
We have international operations in the U.K., India and Germany. Our operations in the U.K. provide floral and related products and
services to consumers and retail florists in the U.K. and The Republic of Ireland. Our operations in India primarily handle email customer
support, product development and quality assurance for our Classmates Media and Communications businesses. Our operations in Germany
provide social networking services in Sweden, Germany, France, Austria, and Switzerland. We also operate in Canada through our network of
independent florist members. We do not generate revenues directly from our operations in India. International revenues totaled $66.6 million,
$7.3 million and $2.6 million for the years ended December 31, 2008, 2007 and 2006, respectively. Revenues from our operations in the U.K.
and The Republic of Ireland totaled $47.9 million for the year ended December 31, 2008. For information regarding risks associated with our
international operations, see "Risk Factors," which appears in Item 1A of this Annual Report on Form 10-K. For information regarding long-
lived assets, see Note 3—"Segment Information" of the Notes to the Consolidated Financial Statements, which appears in Part II, Item 8 of this
Annual Report on Form 10-K.
Employees
At February 13, 2009, we had 1,986 employees, 1,469 of which were located in the U.S., 272 of which were located in Europe, and 245 of
which were located in Hyderabad, India. None of these employees are subject to a collective bargaining agreement, and we consider our
relationships with our employees to be good.
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