TeleNav 2012 Annual Report Download - page 39

Table of Contents
Facilities
Our corporate headquarters are located at 950 De Guigne Drive, Sunnyvale, California in an office consisting of approximately 175,000 square
feet pursuant to a lease that expires in December 2019. This headquarters facility houses the majority of our U.S. research and development, support,
marketing and general and administrative personnel. We lease approximately 48,000 square feet of space in Shanghai, China for our research and
development, sales and support operations pursuant to leases expiring in September 2014 and September 2016, as well as approximately 19,000
square feet in Xi’an, China, for research and development operations pursuant to leases expiring in September 2014 and October 2014. We lease
approximately 12,000 square feet in Culver City, California for research and development and sales and marketing operations. We also lease office
space of less than 3,000 square feet each in Northlake, Washington; Reston, Virginia; Southfield, Michigan; Boston, Massachusetts; and São Paulo,
Brazil 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 customers by determining the scope, enforceability and validity of third party proprietary rights or to establish our
proprietary rights. From time to time we also may be subject to claims from our third party content providers that we owe them additional royalties
and interest, which claims may result in litigation if we and the third party content provider are unable to resolve the matter. 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 patent infringement lawsuit against us, seeking monetary damages, fees and
expenses and other relief. WRE-Hol later sought to add claims against us and certain of our founders, alleging misappropriation of trade secrets,
breach of contract, and wrongful patent inventorship. On April 27, 2010, we filed a reexamination request for all of the claims of the asserted patent
before the U.S. Patent and Trademark Office, or PTO. In the reexamination, the PTO rejected 44 of the 51 patent claims and confirmed the remaining
seven claims. We filed a separate reexamination request with the PTO for the seven confirmed claims. As result of the Examiner's initial findings in
that proceeding, WRE-Hol canceled all but one of the patent claims. We also filed an appeal to challenge some of the findings of the earlier
reexamination. On April 18, 2013 the Patent Trial and Appeal Board ruled in Telenav's favor on the appeal, rejecting all seven of the remaining
claims. While the Court's ruling appears to be dispositive of all of the asserted claims, we do not yet know whether WRE-Hol will seek to challenge
that finding. The Court stayed the entire litigation pending completion of the reexamination. At this time, the case remains stayed by the Court. Due
to the preliminary status of the lawsuit and uncertainties related to litigation, we are unable to evaluate the likelihood of either a favorable or
unfavorable outcome. We believe that it is reasonably possible that we will incur a loss; however, we cannot currently estimate a range of any
possible losses we may experience in connection with this case. Accordingly, we are unable at this time to estimate the effects of this lawsuit on our
financial condition, results of operations, or cash flows.
On December 31, 2009, Vehicle IP, LLC, or Vehicle IP, filed a patent infringement lawsuit against us, seeking monetary damages, fees and
expenses and other relief. Verizon Wireless, or Verizon, was named as a co-defendant in the Vehicle IP litigation based on the VZ Navigator product
and has demanded that we indemnify and defend Verizon against Vehicle IP. At this time, we have not agreed to defend or indemnify Verizon.
AT&T was also named as a co-
defendant in the Vehicle IP litigation based on the AT&T Navigator and Telenav Track products. AT&T has tendered
the defense of the litigation to us and we are defending the case on behalf of AT&T. After the Court issued its claim construction ruling the parties
agreed to focus on early summary judgment motions, and asked the Court to postpone the rest of the case schedule pending the resolution of these
potentially case-dispositive motions. The defendants filed motions for summary judgment of noninfringement. On April 10, 2013 the Court granted
AT&T and Telenav's motion for summary judgment of noninfringement. While the Court's ruling appears to be dispositive of plaintiff's claims,
plaintiff is appealing the Court's claim construction and summary judgment ruling. The appeal is currently ongoing in the U.S. Court of Appeals for
the Federal Circuit. Due to the uncertainties related to litigation, we are unable to evaluate the likelihood of either a favorable or unfavorable
outcome. We believe that it is reasonably
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ITEM 2. PROPERTIES
ITEM 3. LEGAL PROCEEDINGS