TeleNav 2014 Annual Report Download - page 15

Table of Contents
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, 2014, we held 52 U.S. patents and
57 foreign patents expiring between April 11, 2020 and December 30, 2033, and have 115 U.S. and 79 foreign patent applications pending. Of
the pending 115 U.S. patent applications, 111 are nonprovisional patent applications, which are patent applications that are examined on their
merits by the U.S. Patent and Trademark Office, and 4 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 July 31, 2014, we owned the U.S. Patent and Trademark Office registered trademarks for 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 and design logo registered trademark in the United Kingdom and European Union. We have several unregistered trademarks,
including the names Always There Navigation™, Drive with Friends™, Evie™, Geobehavioral™, Geocookie™ , … gets you and gets you
there™, Location Index ™, Location Score ™, MyTies™, MyMileage™, RoadAssist™, , Situational Targeting™, Smart Planner™, Telenav
Connected Service™, Telenav GPS Navigator™, Telenav Navigator™, Telenav Scout™ and Telenav Shotgun™. 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.
We also enter into various types of licensing agreements to obtain access to technology or data that end users utilize in connection with our
navigation services. Our contracts with certain licensors include minimum guaranteed royalty payments, which are payable regardless of the
ultimate volume of revenue derived from the number of paying end users. Our most important agreements are with the providers of maps
pursuant to which we generally pay a monthly fee per end user, a per transaction fee or a revenue sharing percentage for data provided based in
each case upon a multi-
tiered fee structure. We obtain map data pursuant to an agreement with TomTom North America, Inc., or TomTom, dated
July 1, 2009, as amended. Our agreement with TomTom has an initial term of five years (except for off-board applications sold on Apple's App
Store and selected vehicle navigation system applications) and will automatically renew for each supported application for successive one year
periods thereafter, unless either party provides written notice of termination at least 90 days prior to the expiration of the then-current term for
each supported application. In September 2010, we amended our agreement with TomTom to change the fee structure for map and POI data we
use to provide our services for Sprint's bundled offerings. Pursuant to the amended agreement, we pay TomTom a percentage of fees we collect
from Sprint for basic navigation services and our gross advertising revenue and a flat monthly fee per subscriber for premium navigation
services. We also pay TomTom certain guaranteed minimum payments for such services. The license period for navigation services provided for
Sprint's bundled offerings was to expire on the earlier of December 31, 2012 or termination of our agreement with Sprint with respect to the
those bundled services. Effective July 1, 2012, we amended our TomTom agreement, to (a) extend the license period for navigation services
provided for Sprint's bundled offering to June 30, 2013; (b) license TomTom map data for our automotive navigation product, Scout for Cars,
through December 31, 2014; and (c) license TomTom map data for our HTML5, browser-based, voice-guided
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