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Intangible assets, net
3 Months Ended
Mar. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible assets, net

6. Intangible assets, net

Intangible assets other than goodwill consist of the following:

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Amortization period

 

March 31, 2016

 

 

December 31, 2015

 

Gross amount:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

10 years

 

$

2,700

 

 

$

1,659

 

Software developed for internal use

 

3-10 years

 

 

4,845

 

 

 

2,571

 

Developed technology

 

5 years

 

 

10,716

 

 

 

10,716

 

Customer relationships

 

7 years

 

 

30,875

 

 

 

30,875

 

Trademarks

 

20 years

 

 

16,357

 

 

 

16,357

 

Domain names

 

20 years

 

 

191

 

 

 

191

 

Databases

 

10 years

 

 

25,052

 

 

 

25,052

 

Non-competition agreements

 

5 years

 

 

728

 

 

 

728

 

 

 

 

 

 

91,464

 

 

 

88,149

 

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

 

 

 

(41

)

 

 

(34

)

Software developed for internal use

 

 

 

 

(62

)

 

 

(50

)

Developed technology

 

 

 

 

(668

)

 

 

(133

)

Customer relationships

 

 

 

 

(1,375

)

 

 

(272

)

Trademarks

 

 

 

 

(255

)

 

 

(50

)

Domain names

 

 

 

 

(3

)

 

 

(1

)

Databases

 

 

 

 

(781

)

 

 

(155

)

Non-competition agreements

 

 

 

 

(45

)

 

 

(9

)

 

 

 

 

 

(3,230

)

 

 

(704

)

Net intangible assets:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

 

 

 

2,659

 

 

 

1,625

 

Software developed for internal use

 

 

 

 

4,783

 

 

 

2,521

 

Developed technology

 

 

 

 

10,048

 

 

 

10,583

 

Customer relationships

 

 

 

 

29,500

 

 

 

30,603

 

Trademarks

 

 

 

 

16,102

 

 

 

16,307

 

Domain names

 

 

 

 

188

 

 

 

190

 

Databases

 

 

 

 

24,271

 

 

 

24,897

 

Non-competition agreements

 

 

 

 

683

 

 

 

719

 

 

 

 

 

$

88,234

 

 

$

87,445

 

 

The amount associated with Purchased IP and capitalized litigation costs is mainly related to the intellectual property purchased by TBO from Ole Poulsen (“Purchased IP”) pursuant to the Intellectual Property Purchase Agreement dated October 14, 2014 (“IP Agreement”) and related legal and other costs incurred in defending the Company’s claims to the Purchased IP. The gross amount associated with software developed for internal use mainly represent capitalized costs of internally developed software. The amounts relating to developed technology, customer relationships, trademarks, domain names, databases, and non-competition agreements all represent the fair values of intangible assets acquired as a result of the Fluent Acquisition.

Amortization expenses of $2,526 and $12 were included in depreciation and amortization expenses for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there were intangible assets of $2,425 and $4,365, included into the gross amounts of Purchased IP and capitalized litigation costs, and software developed for internal use, respectively, that have not started amortization. These intangible assets will start to amortize when they are put into use.

The Company capitalized $3,315 during the three months ended March 31, 2016, with $1,041 related to Purchased IP litigation costs and $2,274 related to internally developed software.

As of March 31, 2016, estimated amortization expenses related to the Company’s intangible assets for the remainder of 2016 through 2020 and thereafter are as follows:

 

(In thousands)

 

 

 

 

Year

 

March 31, 2016

 

Remainder of 2016

 

$

7,951

 

2017

 

 

10,853

 

2018

 

 

10,853

 

2019

 

 

10,782

 

2020

 

 

10,617

 

2021 and thereafter

 

 

37,178

 

 

 

$

88,234