ServiceMagic 2014 Annual Report Download - page 29

Table of Contents
About.com, Dictionary.com, Investopedia, PriceRunner, Ask.fm, our various toolbar brands, SlimWare, Match.com, OkCupid.com, OurTime.com,
Meetic.com, HomeAdvisor.com and ShoeBuy.com and related domain names and logos), through which they market their products and services
and seek to build and maintain brand loyalty and recognition. So long as these businesses continue to police unauthorized use of these trademarks
and take action against infringement, use these trademarks to identify their products and services and timely renew trademark and related domain
name registrations as required, they should continue to enjoy trademark protection indefinitely under current laws, rules and regulations.
The businesses within our Search & Applications segment also rely upon trade secrets, including algorithms for the generation, organization
and presentation of search results. To a lesser extent, these businesses also rely upon patented and patent1pending proprietary technologies and
processes, primarily those relating to search1related products and services, with expiration dates for patented technologies ranging from 2017 to
2033, and copyrighted material, primarily software and content, such as emoticons, characters and other content that is incorporated into (and used
in connection with the marketing of) toolbars and applications generally.
The Match Group segment also relies upon trade secrets and patented (with expiration dates ranging from 2025 to 2034) and patent1pending
proprietary technologies relating to matching process systems and related features, products and services. HomeAdvisor relies heavily upon trade
secrets, primarily the matching algorithm through which members of its network of home services professionals are matched with consumers, as
well as related patented proprietary technologies that expire in 2020.
We rely on a combination of laws and contractual restrictions with employees, customers, suppliers, affiliates and others to establish and
protect our various intellectual property rights. For example, we have generally registered and continue to apply to register and renew, or secure by
contract where appropriate, trademarks and service marks as they are developed and used, and reserve, register and renew domain names as we
deem appropriate. Effective trademark protection may not be available or may not be sought in every country in which products and services are
made available and contractual disputes may affect the use of marks governed by private contract. Similarly, not every variation of a domain name
may be available or be registered, even if available.
We also generally seek to apply for patents or for other similar statutory protections as and if we deem appropriate, based on then current facts
and circumstances, and will continue to do so in the future. No assurances can be given that any patent application we have filed (or will file) will
result in a patent being issued, or that any existing or future patents will afford adequate protection against competitors and similar technologies. In
addition, no assurances can be given that third parties will not create new products or methods that achieve similar results without infringing upon
patents we own.
Despite these measures, our intellectual property rights may still not be protected in a meaningful manner, challenges to contractual rights
could arise or third parties could copy or otherwise obtain and use our intellectual property without authorization. The occurrence of any of these
events could result in the erosion of our brands and limitations on our ability to control marketing on or through the Internet using our various
domain names, as well as impede our ability to effectively compete against competitors with similar technologies, any of which could adversely
affect our business, financial condition and results of operations.
From time to time, we have been subject to legal proceedings and claims in the ordinary course of business, including claims of alleged
infringement of trademarks, copyrights, patents and other intellectual property rights held by third parties. In addition, litigation may be necessary
in the future to enforce our intellectual property rights, protect our trade secrets or to determine the validity and scope of proprietary rights claimed
by others. Any litigation of this nature, regardless of outcome or merit, could result in substantial costs and diversion of management and technical
resources, any of which could adversely affect our business, financial condition and results of operations. Patent litigation tends to be particularly
protracted and expensive.
Our success depends, in part, on the integrity of our systems and infrastructures and those of third parties. System interruptions and the lack of
integration and redundancy in our and third party information systems may affect our business.
To succeed, our systems and infrastructures must perform well on a consistent basis. From time to time, we may experience occasional system
interruptions that make some or all of our systems or data unavailable or that prevent us from providing products and services. Moreover, as traffic
to our websites, applications and online properties increases and the number of new (and presumably more complex) products and services that we
introduce continues to grow, we will need to upgrade our systems, infrastructures and technologies generally to facilitate this growth. If we fail to
do so, users, customers and third parties with whom we do business may not be able to access our products and services on an intermittent or
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