obtain and market or distribute our intellectual property rights
or technology or otherwise develop products or services with the
same functionality as our services. In addition,
U.S. patent filings are intended to provide the holder with
a right to exclude others from making, using, selling or
importing in the United States the inventions covered by the
claims of granted patents. If granted, our patents may be
contested, circumvented or invalidated. Moreover, the rights
that may be granted in those pending patents may not provide us
with proprietary protection or competitive advantages, and we
may not be able to prevent third parties from infringing these
patents. Therefore, the exact effect of our pending patents, if
issued, and the other steps we have taken to protect our
intellectual property cannot be predicted with certainty.
Although the protection afforded by copyright, trade secret and
trademark law, written agreements and common law may provide
some advantages, we believe that the following factors help us
maintain a competitive advantage:
the technological skills of our research and development
frequent enhancements to our services; and
continued expansion of our proprietary technology.
is a registered trademark in the
United States and in the European Union. We also hold a number
of other trademarks and service marks identifying certain of our
services or features of our services. We also have a number of
trademark applications pending.
As of December 31, 2007, we had 209 full-time
employees. None of our employees are represented by labor unions
or covered by collective bargaining agreements. We consider our
relationship with our employees to be good.
Our principal facilities consist of approximately
31,200 square feet of office space located at 500 Unicorn
Park Drive, Woburn, Massachusetts. We also have leased office
space in Budapest, Hungary and Amsterdam, The Netherlands. We
believe our facilities in Woburn, Budapest and Amsterdam are
sufficient to support our needs through 2008. To the extent we
expand into Asia, additional facilities may be needed.
We also lease space in three data centers operated by third
parties, of which two are located in the United States and the
third is located in Europe.
We are subject to various legal proceedings and claims, either
asserted or unasserted, which arise in the ordinary course of
business. While the outcome of these other claims cannot be
predicted with certainty, management does not believe that the
outcome of any of these other legal matters will have a material
adverse effect on our consolidated financial statements.
In December 2007, we received a letter from Tridia Corporation
suggesting that certain of our services may infringe one of its
patents. In January 30, 2008, we filed a Request for Ex
Parte Reexamination of the subject patent with the United States
Patent and Trademark Office. This request is pending. On the
same day we filed the request for reexamination, Tridia
commenced an action in the United States District Court for the
Northern District of Georgia, in which Tridia alleges certain of
our services infringe a single United States Patent.
Tridias complaint seeks damages in an unspecified amount
and injunctive relief. We have not yet been served with this
complaint. We continue to review and evaluate this claim and
currently intend to defend it vigorously, but we are not able to
currently estimate the possibility of loss or range of our costs
to address or resolve this claim or predict its ultimate outcome.