Nokia 2010 Annual Report Download - page 56

Sales and Marketing
Sales:
NAVTEQ provides its data to endusers through multiple distribution methods, including retail
establishments, the Internet, automobile, handset and mobile device manufacturers and their dealers,
and other redistributors. NAVTEQ also offers distribution services to its customers, including the
manufacturing and shipping of digital storage media to automobile manufacturers and dealers or
directly to endusers, as well as a complete range of services, including inventory management, order
processing, online credit card processing, multicurrency processing, localized VAT handling and
consumer call center support.
NAVTEQ licenses and distributes its database in several ways, including licensing and delivering the
database directly and indirectly to its business customers and consumer endusers. In addition to the
basic license terms that typically provide for nonexclusive licenses, the license agreements generally
include additional terms and conditions relating to the specific use of the data.
The license fees for NAVTEQ’s data vary depending on several factors, including the content of the
data to be used by the product or service, the use for which the data has been licensed, the
geographical scope of the data and whether there is any advertising inventory associated with such
data. The fees paid for the licenses are usually on a percopy, per transaction or per subscription
basis. The fees for NAVTEQ’s data are also increasingly including fees generated from advertising
inventory associated with the map. NAVTEQ also produces and delivers database copies to automobile
manufacturers pursuant to purchase orders or other agreements.
Marketing: NAVTEQ’s marketing efforts include a direct sales force, attendance and exhibition at trade
shows and conferences, advertisements in relevant industry periodicals, direct sales mailings and
advertisements, electronic mailings, Internetbased marketing and comarketing with customers.
Technology, Research and Development
NAVTEQ’s global technology team focuses on developments and innovations in data gathering,
processing, delivery and deployment of its map database and related content. NAVTEQ employs an
integrated approach to its database, software support and operations environments and devotes
significant resources and expertise to the development of a customized data management software
system. NAVTEQ has also built workstation software to enable sophisticated database creation and
the performance of updating tasks in a wellcontrolled and efficient environment with the ability to
access the common database from any of its satellite offices and edit portions of the data
concurrently among several users. NAVTEQ’s proprietary software enables its field force to gather data
on a realtime basis on portable computers in field vehicles. Once the data has been gathered and
stored on portable computers, NAVTEQ’s field force performs further data processing at its field offices
before integrating the changes into the common database. NAVTEQ also incorporates community
feedback received from local governmental entities and consumer feedback received from NAVTEQ’s
Map Reporter and NAVTEQ’s business customers. NAVTEQ continues to work with its business
customers, including Nokia, in order to enable consumers to more easily submit feedback that can
further improve the data.
Patents and Licenses
NAVTEQ relies primarily on a combination of copyright laws, including, in Europe, database protection
laws, trade secrets and patents to establish and protect its intellectual property rights in its database,
software and related technology. NAVTEQ holds a total of 240 United States patents, which cover a
variety of technologies, including technologies relating to the collection and distribution of
geographical and other data, data organization and format, and database evaluation and analysis
tools. NAVTEQ also protects its database, software and related technology, in part, through the terms
of its license agreements and by confidentiality agreements with its employees, consultants,
customers and others.
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