TeleNav 2010 Annual Report Download - page 100

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TELENAV, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
On September 13, 2010, with respect to the lawsuit brought by WRE-Hol, LLC, as previously disclosed, the
U.S. Patent and Trademark Office rejected 44 of the 51 WRE-Hol patent claims in a non-final first office action
and confirmed seven of the 51 claims.
In September 2010, we entered into an amendment to our agreement with our largest customer, Sprint.
Under the terms of the agreement, we will receive an annual fixed fee from Sprint for navigation applications
sold to subscribers in bundles with other Sprint services. The annual fee will change from year to year over the
contract period and the agreement limits the maximum number of subscribers covered under such fee in a given
year. The term of the amended agreement has been extended from December 31, 2011 to December 31, 2012 and
Sprint’s right to terminate the agreement without cause has also been deferred from December 31, 2010 to
June 30, 2012. The amendment to our agreement is effective as of September 1, 2010.
In September 2010, we amended our agreement with Tele Atlas, a provider of map and POI data, to change
the fee structure for map and POI data we provide for Sprint’s bundled offerings. Pursuant to the amended
agreement, we will pay Tele Atlas a percentage of fees we collect from Sprint for basic navigation services and
our gross advertising and mobile commerce revenue and a flat monthly fee per subscriber for premium
navigation services. We also agreed to certain guaranteed minimum payments to Tele Atlas for such services.
The expiration of the license period for navigation services provided for Sprint’s bundled offerings adjusted from
July 1, 2014 to the earlier of December 31, 2012 or termination of our agreement with Sprint with respect to the
those bundled services. The amendment to our agreement is effective as of August 1, 2010.
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