Travelzoo 2003 Annual Report Download - page 28

names, our business could be materially adversely aÅected. We rely upon a combination of copyright, trade
secret and trademark laws to protect our intellectual property rights. The steps we have taken to protect our
proprietary rights, however, may not be adequate to deter misappropriation of proprietary information.
We may not be able to detect unauthorized use of our proprietary information or take appropriate steps to
enforce our intellectual property rights. In addition, the validity, enforceability and scope of protection of
intellectual property in Internet-related industries is uncertain and still evolving. The laws of other countries in
which we may market our services in the future are uncertain and may aÅord little or no eÅective protection of
our intellectual property.
On June 21, 1999, Mr. Bartel, our founder, Ñled with the United States Patent and Trademark OÇce
(""PTO'') to register the trademark ""Travelzoo'' for ""providing information and news in the Ñeld of travel via
an on-line global communications network and travel agency services, namely making reservations and
booking for transportation,'' ""providing information and news in the Ñeld of travel via an on-line global
communications network and travel agency services, namely making reservations and booking for temporary
lodging,'' and ""promoting the goods and services of others through the oÅer of travel goods and services and
shopping club services, namely providing information on travel goods and services to members.'' The PTO
published that mark for opposition on October 31, 2000. On January 22, 2001, Mr. Bartel, who Ñled the
trademark application as an individual, transferred the ownership of the pending trademark ""Travelzoo'' to
Travelzoo Inc. The mark was registered by the PTO on January 23, 2001.
On November 2, 2000, we Ñled with the United States Patent and Trademark OÇce to register the
trademark ""Weekend.com'' for ""providing information via websites on global computer networks in the Ñeld
travel,'' ""providing information via websites on global computer networks in the Ñelds of entertainment,
recreation, and sports,'' and ""providing information via websites on global computer networks in the Ñelds of
fashion, Ñtness, health and exercise.'' The mark was registered by the PTO on November 5, 2002.
On March 18, 2002, we Ñled with the United States Patent and Trademark OÇce to register the
trademark ""Top 20'' for ""promoting the goods and services of others through the oÅer of travel goods and
services and shopping club services, namely providing information on travel goods and services to members,''
""providing information and news in the Ñeld of travel via an on-line global communications network and travel
agency services namely making reservations and booking for transportation,'' and ""providing information and
news in the Ñeld of travel via an on-line global communications network and travel agency services, namely,
making reservations and booking for temporary travel lodging.'' The mark was registered by the PTO on
May 13, 2003.
Employees
As of December 31, 2003, we had 39 employees, of whom 11 worked in sales, business development, and
marketing, 17 in production, 3 in network operations and 8 were involved in Ñnance, administration, and
corporate operations. None of our employees is represented under collective bargaining agreements. We
consider our relations with our employees to be good. Because of our anticipated further growth, we expect
that the number of our employees will continue to increase for the foreseeable future.
RISK FACTORS
Investing in our common stock involves a high degree of risk. Any or all of the risks listed below as well
as other variables aÅecting our operating results could have a material adverse eÅect on our business, our
quarterly and annual operating results or Ñnancial condition, which could cause the market price of our stock
to decline or cause substantial volatility in our stock price, in which event the value of your common stock
could decline. You should also keep these risk factors in mind when you read forward-looking statements.
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