TeleNav 2010 Annual Report Download - page 15

Under our agreements with Sprint and AT&T, we have obligations to indemnify Sprint and AT&T against,
among other things, losses arising out of or in connection with any claim that our technology or services infringe
third party proprietary or intellectual property rights. Our agreements with Sprint and AT&T may be terminated
in the event an infringement claim is made against us and it is reasonably determined that there is a possibility
our technology or service infringed upon a third party’s rights.
We employ administrative, physical and technical safeguards to prevent unauthorized collection, access, use
and disclosure of our end users’ private data and to comply with applicable federal, state and local laws, rules
and regulations. We do not use any end user data for direct marketing or promotions and do not store any user
location information that is specifically identifiable with an end user except to deliver and support our services.
We are also required to comply with our wireless carrier partners’ stringent privacy policies and standards.
Intellectual property
We rely on a combination of patent, copyright, trademark and trade secret laws, as well as confidentiality
procedures and contractual restrictions, to establish and protect our proprietary rights. These laws, procedures
and restrictions provide only limited protection and the legal standards relating to the validity, enforceability and
scope of protection of intellectual property rights are uncertain and still evolving. Furthermore, effective patent,
trademark, copyright and trade secret protection may not be available in every country in which our services and
products are available.
We seek to patent key concepts, components, protocols, processes and other inventions. As of
September 17, 2010, we held 8 U.S. patents and 10 foreign patents expiring between April 11, 2020 and July 15,
2023, and have 59 U.S. and 61 foreign patent applications pending. Of the pending 59 U.S. patent applications,
56 are nonprovisional patent applications, which are patent applications that are examined on their merits by the
U.S. Patent and Trademark Office, and three are provisional patent applications, which are filed for purposes of
establishing priority but cannot result in an issued U.S. patent unless they are first converted to nonprovisional
patents. These patents and patent applications cover claims associated with features and functions of our LBS and
the technology platform we use to provide them. We have filed, and will continue to file, patent applications in
the United States and other countries where there exists a strategic technological or business reason to do so. Any
future patents issued to us may be challenged, invalidated or circumvented. Any patents that may issue in the
future with respect to pending or future patent applications may not provide sufficiently broad protection or may
not prove to be enforceable in actions against alleged infringers.
As of June 30, 2010, we owned the TeleNav trademark, registered with the U.S. Patent and Trademark
Office, and had a trademark application pending for Whereboutz. We also own the TeleNav and design logo
registered trademark in the United Kingdom and European Union. We have several unregistered trademarks,
including TeleNav GPS Navigator, TeleNav Track, TeleNav Vehicle Tracker, TeleNav Asset Tracker, TeleNav
Vehicle Manager, ONMYWAY, OMW, Sipity, TeleNav LocalAdvantage and Always Find Your Way.
We endeavor to enter into agreements with our employees and contractors and with parties with which we
do business in order to limit access to and disclosure of our proprietary information. We cannot be certain that
the steps we have taken will prevent unauthorized use or reverse engineering of our technology. Moreover, others
may independently develop technologies that are competitive with ours or that infringe our intellectual property.
The enforcement of our intellectual property rights also depends on the success of our legal actions against these
infringers, but these actions may not be successful, even when our rights have been infringed.
We also enter into various types of licensing agreements to obtain access to technology or data that end users
utilize in connection with our LBS. Our contracts with certain licensors include minimum guaranteed royalty
payments, which are payable regardless of the ultimate volume of revenue derived from the number of paying end
users. Our most important agreements are with the providers of maps and POI data pursuant to which we generally pay
a monthly fee per end user, a per transaction fee or a revenue sharing percentage for data provided based in each case
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