TeleNav 2015 Annual Report Download - page 13

Table of Contents
We provide automotive-grade GPS navigation software to Ford pursuant to an agreement dated October 12, 2009. We are the preferred
provider for GPS on-board navigation integrated with Ford's second-generation SYNC platform during the term of the agreement, which expires
in December 2017. The agreement may be renewed for successive 12-month periods if either party provides notice of renewal at least 45 days
prior to the expiration of the applicable term, and the other party agrees to such renewal. Our agreement with Ford also allows either party to
terminate the agreement if the other party is insolvent or materially breaches its obligations and fails to cure such breach.
Our agreement with AT&T automatically renews each March for successive one year periods unless either party provides notice of
termination at least 60 days prior to the expiration of the applicable term. Our agreement with AT&T was automatically renewed in March 2015
for one year. During the term of our agreement, we are the exclusive provider of white label GPS navigation services to AT&T. AT&T is not
required to offer our navigation services. Our agreement with AT&T also allows either party to terminate the agreement if the other party is
insolvent or materially breaches its obligations and fails to cure such breach. We are also required to give AT&T preferred pricing during the
term of our agreement.
Under our agreements with Ford and AT&T, we have obligations to indemnify each of them 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 Ford 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 without the consent of the user 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 customers' 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 July 31, 2015, we held 71 U.S. patents and
65 foreign patents expiring between April 11, 2020 and February 14, 2034, and have 115 U.S. and 81 foreign patent applications pending. Of the
pending 115 U.S. patent applications, 110 are nonprovisional patent applications, which are patent applications that are examined on their merits
by the U.S. Patent and Trademark Office, and five 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 may relate
to features and functions of our navigation services 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, 2015 , we owned the U.S. Patent and Trademark Office registered trademarks for Geocookie®, Goby®, ONMYWAY®,
Scout®, skobbler®, Sipity®, Telenav®, Thinknear® and Whereboutz®, as well as the logos for Telenav, Scout, skobbler and Thinknear. We
also own the Telenav registered trademark in the United Kingdom, European Union, Mexico and China. We have several unregistered
trademarks, including the names Always There Navigation™, Chatbaka™, Drive with Friends™, Evie™, Geobehavioral™, … gets you and
gets you there™, HopOver™, LivingMap™, Location Index ™, Location Score ™, MyTies™, MyMileage™, RealReach™, RoadAssist™, ,
Situational Targeting™, Smart Planner™, Telenav Connected Service™, Telenav DRIVE™, Telenav GPS Navigator™, Telenav Navigator™,
Telenav Scout™, Telenav Shotgun™, and TrueDelta™. 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.
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