Table of Contents
We believe that our technology platform is essential to successfully implement our strategy of expanding and enhancing our services,
expanding in the wireless and Internet software and application services market and maintaining the attractiveness and competitiveness of our
solutions. We have invested significant time and resources in creating our patented and patent pending technology. Product development
expenses were $39.3 million for the year ended December 31, 2001, $40.6 million for the year ended December 31, 2000 and $15.6 million for
the year ended December 31, 1999.
Our success depends significantly upon our technology. To protect our rights, we rely on a combination of copyright and trademark laws,
patents, trade secrets, confidentiality agreements with employees and third parties and protective contractual provisions. Most of our employees
have executed confidentiality and nonuse agreements that transfer any rights they may have in copyrightable works or patentable technologies
to us. In addition, prior to entering into discussions with potential content providers and customers regarding our business and technologies, we
generally require that such parties enter into nondisclosure agreements with us. If these discussions result in a license or other business
relationship, we also generally require that the agreement setting forth the parties' respective rights and obligations include provisions for the
protection of our intellectual property rights. For example, the standard language in our agreement provides that we retain ownership of all
patents and copyrights in our technology and requires our customers to display our copyright and trademark notices.
InfoSpace, the InfoSpace logo, Go2Net, Authorize.Net, the Dogpile logo, ActiveShopper, 100Hot, Web21, Haggle Online,
HyperMart, MetaCrawler, MetaSpy, MyAgent, Silicon Investor, FraudScreen.Net, the Get Rewarded logo, RubberChicken.com
and WebMarket are registered trademarks of ours. We recently purchased the following registered trademarks from At Home Corporation:
Classifieds2000, Cool Notify, Excite, Excite Classifieds, Excite Search, Jango, Webcrawler, and Webcrawler Direct. Other
recently acquired registered trademarks include Giantbear.com, acquired with other assets from GiantBear, Inc., and E Cash, Digicash,
E Vote, Kidcash, Net Cash and Net Pay, acquired as part of our purchase of substantially all assets of eCash Technologies, Inc. In
addition, we have applied for federal registration of other marks, including ActivePromotion, Dogpile, IntelliShopper and Playsite, the
Go2Net logo, Discover What You Can Do, Airpay, and SMS Direct. From the GiantBear, Inc. asset purchase, we acquired the federal
applications for Audiocub, Bearcub, Beartracks, Business Bear and Giant Bear. From the At Home Corporation asset purchase, we
acquired the federal application for Excite Precision Search. We also have applied for registration of certain service marks and trademarks in
the United States and in other countries, and will seek to register additional marks, as appropriate. We may not be successful in obtaining the
service marks and trademarks for which we have applied.
We have been issued six U.S. patents, and recently acquired twenty more in connection with the eCash asset purchase in February 2002.
Our issued patents cover private label commerce solutions; tracking the purchase of products, services and information on the Internet and on
wireless devices; and electronic transaction technologies. We also have several foreign patents and patents pending covering some of these
technologies. We also have over forty nine U.S. patent applications pending relating to various aspects of our technology, including technology
we have developed for querying and developing databases, for developing and constructing Web pages, electronic commerce on line directory
services and Web scraping. We have received a notice of allowance for one of these patent applications. From the GiantBear asset purchase, we
acquired three pending U.S. patents relating to wireless technology and through the eCash asset purchase, we acquired one pending patent
related to electronic transaction technology. We are preparing additional patent applications on other features of our technology. We have
instituted a formal patent program and anticipate on going patent application activity in the future. Patents with respect to our technology may
not be granted, and, if granted, patents may be challenged or invalidated. In addition, issued patents may not provide us with any competitive
advantages and may be challenged by third parties.