Travelzoo 2002 Annual Report Download - page 23

ability to provide advertisers with demographic information. The European Union (the ""EU'') has adopted a
directive that imposes restrictions on the collection and use of personal data. The directive could impose
restrictions that are more stringent than current Internet privacy standards in the United States. The directive
may adversely aÅect our activities to the extent that we may seek to collect data from users in EU member
countries.
Domain Names. Domain names are the user's Internet ""addresses.'' The current system for registering,
allocating and managing domain names has been the subject of litigation and of proposed regulatory reform.
We own the domain names for travelzoo.com, travelzoo.net, travelzoo.org, travelzoo.ca, travelzoo.co.uk,
weekend.com, and weekends.com, and have registered ""Travelzoo'' and ""Weekend.com'' as trademarks in the
United States. Because of these protections, it is unlikely, yet possible, that third parties may bring claims for
infringement against us for the use of our domain name and trademark. In the event such claims are
successful, we could lose the ability to use our domain names. There can be no assurance that our domain
name will not lose its value, or that we will not have to obtain entirely new domain names in addition to or in
lieu of our current domain name if changes in overall Internet domain name rules result in a restructuring in
the current system of using domain names which include "".com,'' "".net,'' "".gov,'' "".edu'' and other extensions.
Jurisdictions. Due to the global nature of the Internet, it is possible that, although our transmissions
over the Internet originate primarily in California, the governments of other states and foreign countries might
attempt to regulate our business activities. In addition, because our service is available over the Internet in
multiple states and foreign countries, these jurisdictions may require us to qualify to do business as a foreign
corporation in each of these states or foreign countries, which could subject us to taxes and other regulations.
Intellectual Property
Our success depends to a signiÑcant degree upon the protection of our brand names, including Travelzoo,
Travelzoo Top 20, and Weekend.com. If we were unable to protect the Travelzoo and Travelzoo Top 20 brand
names, our business could be materially adversely aÅected. We rely upon a combination of copyright, trade
secret and trademark laws to protect our intellectual property rights. The steps we have taken to protect our
proprietary rights, however, may not be adequate to deter misappropriation of proprietary information.
We may not be able to detect unauthorized use of our proprietary information or take appropriate steps to
enforce our intellectual property rights. In addition, the validity, enforceability and scope of protection of
intellectual property in Internet-related industries is uncertain and still evolving. The laws of other countries in
which we may market our services in the future are uncertain and may aÅord little or no eÅective protection of
our intellectual property.
On June 21, 1999, Mr. Bartel, our founder, Ñled with the United States Patent and Trademark OÇce
(""PTO'') to register the trademark ""Travelzoo'' for ""providing information and news in the Ñeld of travel via
an on-line global communications network and travel agency services, namely making reservations and
booking for transportation,'' ""providing information and news in the Ñeld of travel via an on-line global
communications network and travel agency services, namely making reservations and booking for temporary
lodging,'' and ""promoting the goods and services of others through the oÅer of travel goods and services and
shopping club services, namely providing information on travel goods and services to members.'' The PTO
published that mark for opposition on October 31, 2000. On January 22, 2001, Mr. Bartel, who Ñled the
trademark application as an individual, transferred the ownership of the pending trademark ""Travelzoo'' to
Travelzoo Inc. The mark was registered by the PTO on January 23, 2001.
On November 2, 2000, we Ñled with the United States Patent and Trademark OÇce to register the
trademark ""Weekend.com'' for ""providing information via websites on global computer networks in the Ñeld
travel,'' ""providing information via websites on global computer networks in the Ñelds of entertainment,
recreation, and sports,'' and ""providing information via websites on global computer networks in the Ñelds of
fashion, Ñtness, health and exercise.'' The mark was registered by the PTO on November 5, 2002.
On March 18, 2002, we Ñled with the United States Patent and Trademark OÇce to register the
trademark ""Top 20'' for ""promoting the goods and services of others through the oÅer of travel goods and
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