Expedia 2007 Annual Report Download - page 16

governed by private contract. In addition, our infringement monitoring resources may not locate every
trademark or domain name infringement that exists. Similarly, not every variation of a domain name may be
available, or may be registered by us, even if available. The failure to protect our intellectual property in a
meaningful manner, or challenges to our intellectual property rights, could materially adversely affect our
business, result in erosion of our brand names and/or limit our ability to control marketing on or through the
internet using our various domain names.
We have considered, and will continue to consider, the appropriateness of filing for patents to protect
future inventions, as circumstances may warrant. However, many patents protect only specific inventions and
there can be no assurance that others may not create new products or methods that achieve similar results
without infringing upon patents owned by us.
From time to time, we may be subject to legal proceedings and claims in the ordinary course of our
business, including claims of alleged infringement by us of the trademarks, copyrights, patents and other
intellectual property rights of third-parties. In addition, litigation may be necessary in the future to enforce our
intellectual property rights, protect our trade secrets or to determine the validity and scope of proprietary rights
claimed by others. Any such litigation, regardless of outcome or merit, could result in substantial costs and
diversion of management and technical resources, any of which could materially harm our business.
Regulation
We must comply with laws and regulations relating to the travel industry and the provision of travel
services, including registration in various states as “sellers of travel” and compliance with certain disclosure
requirements and participation in state restitution funds. In addition, our businesses are subject to regulation by
the U.S. Department of Transportation and must comply with various rules and regulations governing the
provision of air transportation, including those relating to advertising and accessibility.
As we continue to expand the reach of our brands into the European, Asia-Pacific and other international
markets, we are increasingly subject to laws and regulations applicable to travel agents in those markets,
including, in some countries, laws regulating the provision of travel packages and industry specific value-
added tax regimes. For example, the European Economic Community Council Directive on Package Travel
Package Holidays and Package Tours imposes various obligations upon marketers of travel packages, such as
disclosure obligations to consumers and liability to consumers for improper performance of the package,
including supplier failure.
Financial Information about Segments and Geographic Areas
We generate our revenue through a diverse customer base, and there is no reliance on a single customer
or small group of customers; no customer represented 10% or more of our total revenue in the periods
presented in this Annual Report on Form 10-K.
In the first quarter of 2006, we began reporting two segments: North America and Europe. The change
from a single reportable segment is a result of the reorganization of our business. We have not reported
segment information for the year ended December 31, 2005, as it is not practicable to do so. The segment and
geographic information required herein is contained in Note 16 — Segment Information,in the notes to our
consolidated financial statements.
Additional Information
Company Website and Public Filings. We maintain a corporate website at www.expediainc.com. Except
as explicitly noted, the information on our website, as well as the websites of our various brands and
businesses, is not incorporated by reference in this Annual Report on Form 10-K, or in any other filings with,
or in any information furnished or submitted to, the SEC.
We make available, free of charge through our website, our Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K filed or furnished pursuant to Sections 13(a) or
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