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the FCC Communications, Reliability, Interoperability Council (“CSRIC”). For the years ended December 31, 2013, 2012, and 2011,
our research and development expense was $34.3 million, $36.6 million, and $37.1 million, respectively.
Certain of our government customers contract with us from time to time to conduct research on telecommunications software,
equipment and systems.
Intellectual Property Rights
We rely on a combination of patent, copyright, trademark, service mark, and trade secret laws and restrictions to establish and
protect certain proprietary rights in our products and services.
The present size of our patent portfolio allows us to build meaningful partnerships with other companies through direct
licensing, cross licensing, and other forms of agreements. Our commitment to protecting our intellectual property ensures continued
differentiation and freedom to operate in the industry. We monetize our intellectual property portfolio via patent sales and licensing of
the technology as well as incorporating our inventions in our deliverables. No single patent or group of patents, patent applications or
patent license agreement is or are material to the Company’s operations.
As of February 5, 2014, we own 352 issued patents relating to wireless location-based services, text messaging, GPS ephemeris
data, emergency public safety data routing, electronic commerce, and other areas. We have filed nearly 400 additional patent
applications for certain apparatus and processes we believe we have invented to enable key features of the location services, wireless
text alerts, Short Message Service Center, mobile-originated data and E9-1-1 network software. There is no assurance that our patent
applications will result in a patent being issued by the U.S. Patent and Trademark Office or other patent offices, nor is there any
guarantee that any issued patent will be valid and enforceable. Additionally, foreign patent rights may or may not be available or
pursued in any technology area for which U.S. patent applications have been filed.
We developed our Short Message Service Center software in 1996 under our development agreement with Alcatel-Lucent.
Under the development agreement, we share certain ownership rights in this software application with Alcatel-Lucent. The scope of
each party’s ownership interest is subject to each party’s various underlying ownership rights in intellectual property and also to
confidential information contributed to the applications, and is subject to challenge by either party.
As a member of various industry standard-setting forums, we have agreed to license certain of our intellectual property to other
members on fair and reasonable terms to the extent that the license is required to develop non-infringing products under the
specifications promulgated by those forums.
Employees
As of December 31, 2013, we had 1,286 employees, of which 1,257 were full-time and 29 were part-time or temporary. We
believe relations with our employees are good. None of our employees is represented by a union.
Geographical Information
During 2013, 2012, and 2011, total revenue generated from products and services in the U.S. were $324.1 million, $445.6
million, and $392.1 million, respectively, and total revenue generated from products and services outside of the U.S. were $38.2
million, $41.8 million, and $33.3 million, respectively. As of December 31, 2013, 2012, and 2011, essentially all of the long-lived
assets of our operations were located in the U.S.
We are subject to risks related to offering our products and services in foreign countries. See the information under the heading
“Risk Factors — Because our product offerings are sold internationally, we are subject to risks of conducting business in foreign
countries” included in Item 1A.
