Travelzoo 2005 Annual Report Download - page 38

The U.S. Patent and Trademark OÇce registered the trademark for ""Travelzoo'' on January 23, 2001.
The OÇce for Harmonization in the Internal Market of the European Community registered the trademark
for ""Travelzoo'' on May 11, 2004. If we are unable to protect our rights in the mark, a key element of our
strategy of promoting Travelzoo as a brand could be disrupted and our business could be adversely aÅected.
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. The unauthorized reproduction or other misappropriation of our proprietary
technology could enable third parties to beneÑt from our technology and brand name without paying us for
them. If this were to occur, our business could be materially adversely aÅected.
We may face liability from intellectual property litigation that could be costly to prosecute or defend
and distract management's attention with no assurance of success.
We cannot be certain that our products, content and brand names do not or will not infringe valid patents,
copyrights or other intellectual property rights held by third parties. While we have a trademark for
""Travelzoo,'' many companies in the industry have similar names including the word ""travel''. We expect that
infringement claims in our markets will increase in number as more participants enter the markets. We may
be subject to legal proceedings and claims from time to time relating to the intellectual property of others in
the ordinary course of our business. We may incur substantial expenses in defending against these third party
infringement claims, regardless of their merit, and such claims could result in a signiÑcant diversion of the
eÅorts of our management personnel. Successful infringement claims against us may result in monetary
liability or a material disruption in the conduct of our business.
Item 1B. Unresolved StaÅ Comments
None.
Item 2. Properties
Our principal oÇces are located in approximately 3,000 square feet of oÇce space in New York,
New York under an operating lease with HQ Global Workplaces, Inc. that expires on December 31, 2007.
Our West Coast oÇces are located in approximately 3,000 square feet of oÇce space in Mountain View,
California under an operating lease with HQ Global Workplaces, Inc. that expires on December 31, 2007. Our
Chicago oÇces are located in approximately 1,000 square feet of oÇce space under an operating lease with
Regus Business Centre that expires on December 31, 2007. Our Miami oÇces are located in approximately
1,000 square feet of oÇce space under an operating lease with Regus Business Centre that expires on
December 31, 2006. Our Las Vegas oÇces are located in approximately 1,000 square feet of oÇce space under
an operating lease with HQ Global Workplaces, Inc. that expires on December 31, 2007. Our London oÇces
are located in approximately 1,000 square feet of oÇce space under an operating lease with Regus Business
Centre that expires on April 30, 2007. Our Munich oÇces are located in approximately 1,000 square feet of
oÇce space under an operating lease with Regus Business Centre that expires on December 31, 2007. We
believe that our leased facilities are adequate to meet our current needs; however, we intend to expand our
operations and therefore may require additional facilities in the future. We believe that such additional
facilities are available.
Item 3. Legal Proceedings
From time to time, we are subject to legal proceedings and claims in the ordinary course of business,
including claims of alleged infringement of trademarks, copyrights and other intellectual property rights, as
well as claims by former employees. We are not currently aware of any legal proceedings or claims pending or
threatened that we believe will have, individually or in the aggregate, a material adverse eÅect on our Ñnancial
condition or results of operations.
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