TeleNav 2015 Annual Report Download - page 106

Table of Contents
and Location Based Services LLC (collectively, EMSAT) in the U.S. District Court for the Northern District of Ohio. In March 2011, EMSAT
and AT&T settled their claims. The PTO reexamined two of the patents in suit, confirming the validity of only two of the asserted claims from
those patents. All patent claims that EMSAT alleged to be infringed by the Telenav GPS Navigator product were cancelled during
reexamination. In the suits against T-Mobile, Alltel and Sprint, EMSAT amended its allegations to remove allegations of infringement of the
patent claims that were cancelled during reexamination. EMSAT and T-
Mobile stipulated to a dismissal and their case was dismissed on January
28, 2015. On March 20, 2015, the Court dismissed and closed the Alltel case and on April 10, 2015 the Court dismissed and closed the Sprint
case. We have not yet determined the extent of our indemnification obligations to AT&T. We believe that it is reasonably possible that we will
incur additional loss; however, we cannot currently estimate a range of other possible losses we may experience in connection with this case.
Accordingly, we are unable at this time to estimate the overall effects of this matter on our financial condition, results of operations, or cash
flows.
In March 2009, AT&T demanded that we indemnify and defend them against a patent infringement lawsuit brought by Tendler Cellular of
Texas LLC, or Tendler, in the U.S. District Court for the Eastern District of Texas. In June 2010, AT&T settled its claims with Tendler and we
came to an agreement with AT&T as to the extent of our contribution towards AT&T's settlement and the amount of our contribution was not
material; however, there continues to be a disagreement as to whether any additional amounts are owed to AT&T for legal fees and expenses
related to the defense of the matter. We believe that it is reasonably possible that we will incur additional loss; however, we cannot currently
estimate a range of other possible losses we may experience in connection with this case. Accordingly, we are unable at this time to estimate the
overall effects on our financial condition, results of operations, or cash flows.
7. Guarantees and indemnifications
Our agreements with our customers generally include certain provisions for indemnifying them against liabilities if our products and
services infringe a third party’s intellectual property rights or for other specified matters. We have in the past received indemnification requests
or notices of their intent to seek indemnification in the future from our customers with respect to specific litigation claims in which our
customers have been named as defendants.
We have agreed to indemnify our directors, officers and certain other employees for certain events or occurrences, subject to certain limits,
while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons
upon the termination of their services with us, but termination will not affect claims for indemnification related to events occurring prior to the
effective date of termination. The maximum amount of potential future indemnification is unlimited. We have a directors and officers insurance
policy that limits our potential exposure. We believe that any financial exposure related to these indemnification agreements is not material.
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