Travelzoo 2009 Annual Report Download - page 35

countries in Asia Pacific. In January 2009, we purchased the domain name fly.com. 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 names will not lose their value, or that we will not have to obtain entirely
new domain names in addition to or in lieu of our current domain names 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 significant degree upon the protection of our brand names, including Travelzoo and
Top 20. If we were unable to protect the Travelzoo and Top 20 brand names, our business could be materially
adversely affected. We rely upon a combination of copyright, trade secret and trademark laws to protect our
intellectual property rights. We have registered the Travelzoo and Top 20 trademarks, among others, with the United
States Patent and Trademark Office. We have registered the Travelzoo and Travelzoo Top 20 trademarks with the
Office for Harmonization in the Internal Market of the European Community. We have registered the Travelzoo
trademark in Australia, Canada, China, Hong Kong, Japan, South Korea, and Taiwan. 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 are uncertain and still evolving. The laws of other countries
in which we may market our services in the future are uncertain and may afford little or no effective protection of
our intellectual property.
Employees
As of December 31, 2009, we had 193 employees worldwide. None of our employees are represented under
collective bargaining agreements. We consider our relations with our employees to be good. Because of our
anticipated further growth, we expect that the number of our employees will continue to increase for the foreseeable
future.
Internet Access to Other Information
We make available free of charge, on or through our Web site (www.travelzoo.com), annual reports on
Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and amendments to those reports filed
or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as well as proxy statements,
as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
Information included on our Web site does not constitute part of this Report.
Item 1A. Risk Factors
Investing in our common stock involves a high degree of risk. Any or all of the risks listed below as well as other
variables affecting our operating results could have a material adverse effect on our business, our quarterly and
annual operating results or financial condition, which could cause the market price of our stock to decline or cause
substantial volatility in our stock price, in which event the value of your common stock could decline. You should
also keep these risk factors in mind when you read forward-looking statements.
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