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V
O
NA
G
EH
O
LDIN
GS CO
RP
.
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(
In thousands, except per share amounts
)
P
atents an
dli
censes
I
n
J
une 2006, we purc
h
ase
d
t
h
ree patents re
l
ate
d
t
o
t
he compression of packetized digital signals commonl
y
used in Voice over Internet Protocol
(
“VoIP”
)
technology a
t
a cost of
$
5,268. In July 2006, we began amortizing th
e
cost of these patents over their estimated useful lives o
f
2.7
y
ears. Amortization expense was
$
424 for the
y
ea
r
ended December 31, 2009 and
$
1,938 for the
y
ear ended
December 31, 2008. These patents were full
y
amortized
as of March 31
,
2009
.
In
O
ctober 2007
,
in connection with the settlement of
our patent litigation with
S
print, we acquired a license to
use
S
print’s portfolio of “Voice over Packet” patents. The
fair value assigned to these patents was
$
5,500. We
b
egan amortizing the cost of these patents in
O
ctobe
r
2007 over their patent lives of 6.6
y
ears. Amortization
expense was
$
825 for the
y
ears ended December 31
,
2010, 2009, and 2008. Annual amortization will be a
pp
rox-
i
mately
$
825
.
In December 2009, we entered into a licensin
g
a
g
reement
f
or a port
f
olio o
f
“Voice over Packet” patents.
T
he fair value assi
g
ned to these patents was $1,250. W
e
be
g
an amortizin
g
the cost o
f
these patents in Januar
y
2010 over the estimated use
f
ul lives o
f
5 years. Amor
-
t
ization expense was $250 for the year ended
December 31, 2010, and $0 for the years ended 2009 and
2008. Annual amortization will be approximately $250
.
T
ra
d
emar
k
In April 2008, in connection with the settlement o
fa
t
ra
d
emar
kdi
spute, we acqu
i
re
d
t
h
er
i
g
h
t to use t
h
e
t
rademark in question. The fair value assigned to th
e
t
rademark was
$
560. This trademark is being amortized
over its remaining life of 8 years. Amortization expens
e
was
$
70 for the
y
ears ended December 31, 2010 an
d
2009 and
$
52 for the
y
ear ended December 31, 2008
.
Annual amortization will be approximatel
y$
70
.
Note 4
.
S
u
pp
lemental Income
S
tatement Account Informatio
n
Amounts included in tele
p
hon
y
services revenu
e
D
ecem
b
er
3
1
,
20
1
0
D
ecem
b
er
3
1
,
2009
D
ecem
b
er
3
1
,
2008
US
F fees $66
,
292 $57
,
835 $54
,
44
4
D
isconnect
f
ee $9
,
918 $21
,
715 $22
,
271
I
nitial activation
f
ees $17
,
629 $26
,
580 $27
,
83
5
A
mounts
i
nc
l
u
d
e
di
n customer equ
i
pment an
d
s
hi
pp
i
ng revenue
D
ecem
b
er
3
1
,
20
1
0
D
ecem
b
er
3
1
,
2009
D
ecem
b
er
3
1
,
2008
E
quipment recover
yf
ee
$
7
,
401
$
17
,
044
$
14
,
788
Shipping and handling fee
$
2,400
$
4,660
$
11,13
0
Amount included in direct cost of tele
p
hon
y
service
s
D
ecember 31
,
2
0
1
0
D
ecember 31
,
2
009
D
ecember 31
,
2
008
US
F costs
$
66,292
$
57,835
$
54,44
4
Amount included in direct cost of
g
oods sol
d
D
ecem
b
er
3
1
,
20
1
0
D
ecem
b
er
3
1
,
2009
D
ecem
b
er
3
1
,
2008
Shipping and handling cost $8,390 $11,565 $14,215
A
mount
i
nc
l
u
d
e
di
n mar
k
et
i
ng
D
ecember 31
,
201
0
D
ecember 31
,
200
9
D
ecember 31
,
2008
Advertising cost
s
$
142
,
753
$
146
,
448
$
170
,
68
6
F
-15