TeleNav 2011 Annual Report Download - page 43

Table of Contents
stock outstanding as of June 30, 2011. This significant concentration of share ownership may adversely affect the trading price for our common
stock because investors often perceive disadvantages in owning stock in companies with controlling stockholders. Also, these stockholders,
acting together, will be able to control our management and affairs and matters requiring stockholder approval, including the election of directors
and the approval of significant corporate transactions, such as mergers, consolidations or the sale of substantially all of our assets. Consequently,
this concentration of ownership may have the effect of delaying or preventing a change of control, including a merger, consolidation or other
business combination involving us, or discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control,
even if that change of control would benefit our other stockholders.
None.
Facilities
Our corporate headquarters are located at 1130 Kifer Road, Sunnyvale, California in an office consisting of approximately 46,500 square
feet pursuant to a lease that expires in January 2012. We sublease additional office space in Sunnyvale, California of approximately 23,000
square feet pursuant to a sublease that expires in December 2011. In June 2011, we entered into an agreement to lease approximately 175,000
square feet of office and research and development space for our corporate headquarters in Sunnyvale, California, for an eight year period
expected to begin December 1, 2011. We lease approximately 48,500 square feet of space in Shanghai, China for our research and development,
sales and support operations pursuant to leases expiring in September 2014, as well as approximately 17,000 square feet and approximately
9,500 square feet in Beijing and Xi’an, China, respectively, for research and development operations pursuant to leases expiring in May 2012
and October 2011, respectively. We also lease office space of less than 2,500 square feet each in Kirkland, Washington; Ashburn, Virginia;
Southfield, Michigan; São Paulo, Brazil; and Chelmsford, England for our sales, marketing and business development personnel located in those
areas. In addition to our headquarters and other offices, we lease data center space in Sunnyvale, Sacramento and Santa Clara, California. We
believe our current facilities will be adequate or that additional space will be available on commercially reasonable terms for the foreseeable
future.
From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. We have received, and may in the
future continue to receive, claims from third parties asserting infringement of their intellectual property rights. Future litigation may be necessary
to defend ourselves and our wireless carrier customers by determining the scope, enforceability and validity of third party proprietary rights or to
establish our proprietary rights. There can be no assurance with respect to the outcome of any current or future litigation brought against us or
pursuant to which we have indemnification obligations and the outcome could have a material adverse impact on our business, operating results
and financial condition.
On November 17, 2009, WRE-Hol, LLC, or WRE-Hol, filed a complaint against us in the U.S. District Court for the Western District of
Washington (Case No. 2:09-cv-01642-MJP). The lawsuit alleges that certain of our products and/or services infringe U.S. Patent No. 7,149,625,
and that we induce infringement and contribute to the infringement of U.S. Patent No. 7,149,625 by others. According to the patent, the
invention generally relates to a system and method for providing navigation and automated guidance to a mobile user. The complaint seeks
unspecified monetary damages, fees and expenses and injunctive relief against us. On November 27, 2009, WRE-Hol served the complaint on
us. On January 25, 2010, we answered the WRE-Hol complaint asserting that the patent-in-suit is not infringed and is invalid and unenforceable.
On March 11, 2010, WRE-Hol amended its
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ITEM 1B.
UNRESOLVED STAFF COMMENTS
ITEM 2.
PROPERTIES
ITEM 3.
LEGAL PROCEEDINGS