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53
As of December 31, 2007, intangible assets subject to amortization relate primarily to the following (in thousands):
Weighted-Average
Amortization
Period
Historical
Cost
Accumulated
Amortization Net
Patents 8.82 years 20,841 $ 5,451 $ 15,390
Technology 2.97 years 4,106 3,168 938
Customer relationships 3.86 years 5,601 2,528 3,073
Trade name 16.02 years 8,404 969 7,435
Total $ 38,952 $ 12,116 $ 26,836
Expected amortization expense for intangible assets subject to amortization at December 31, 2008, are as follows (in
thousands):
Fiscal Year:
2009 $ 6,537
2010 5,679
2011 3,620
2012 3,184
2013 2,671
Thereafter 12,419
Total expected amortization expense $ 34,110
Amortization expense was $6.1 million, $3.9 million and $2.6 million for the years ended December 31, 2008, 2007 and 2006,
respectively.
6. Commitments and Contingencies
Leases
We lease certain facilities and equipment under non-cancelable capital and operating leases, which expire at various dates
through 2021. Future minimum lease payments at December 31, 2008, under non-cancelable operating leases (with initial or
remaining lease terms in excess of one year) and future minimum capital lease payments are as follows (in thousands):
Operating
Leases
Fiscal Year:
2009 $ 1,489
2010 414
2011 215
2012 200
2013 83
Thereafter 580
Total minimum lease payments $ 2,981
Rental expense for the years ended December 31, 2008, 2007 and 2006 was $2.1 million, $1.6 million and $1.7 million,
respectively.
7. Litigation
From time to time, we are involved in litigation and other disputes or regulatory inquiries that arise in the ordinary course of our
business. Many of these actions are filed in response to patent actions filed by us against the plaintiffs. The number and significance of
these disputes and inquiries has increased as our business expands and j2 Global grows. Any claims or regulatory actions against us,
whether meritorious or not, could be time-consuming, result in costly litigation, require significant management time and result in
diversion of significant operational resources.
In February 2004 (the “2004 case”) and July 2005 (the “2005 case”), we filed two lawsuits against Venali, in the United States
District Court for the Central District of California for infringement of several of our U.S. patents. The 2004 case has been stayed
pending reexamination of the patents in suit. In the 2005 case, Venali filed various counterclaims against us on December 27, 2006,
which relate in substantial part to the patent infringement claims by us against Venali. On May 11, 2007, the court entered a claim