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Intangible assets, net
6 Months Ended
Jun. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible assets, net

5. Intangible assets, net

Intangible assets other than goodwill consist of the following:

 

(In thousands)

 

Amortization period

 

June 30, 2016

 

 

December 31, 2015

 

Gross amount:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

10 years

 

$

3,837

 

 

$

1,659

 

Software developed for internal use

 

3-10 years

 

 

6,795

 

 

 

2,571

 

Acquired proprietary technology

 

5 years

 

 

13,532

 

 

 

10,716

 

Customer relationships

 

7-10 years

 

 

34,986

 

 

 

30,875

 

Trade names

 

20 years

 

 

18,057

 

 

 

16,357

 

Domain names

 

20 years

 

 

191

 

 

 

191

 

Acquired databases

 

5-10 years

 

 

31,292

 

 

 

25,052

 

Non-competition agreements

 

2-5 years

 

 

1,768

 

 

 

728

 

 

 

 

 

 

110,458

 

 

 

88,149

 

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

 

 

 

(48

)

 

 

(34

)

Software developed for internal use

 

 

 

 

(166

)

 

 

(50

)

Acquired proprietary technology

 

 

 

 

(1,307

)

 

 

(133

)

Customer relationships

 

 

 

 

(2,445

)

 

 

(272

)

Trade names

 

 

 

 

(460

)

 

 

(50

)

Domain names

 

 

 

 

(5

)

 

 

(1

)

Acquired databases

 

 

 

 

(1,551

)

 

 

(155

)

Non-competition agreements

 

 

 

 

(115

)

 

 

(9

)

 

 

 

 

 

(6,097

)

 

 

(704

)

Net intangible assets:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

 

 

 

3,789

 

 

 

1,625

 

Software developed for internal use

 

 

 

 

6,629

 

 

 

2,521

 

Acquired proprietary technology

 

 

 

 

12,225

 

 

 

10,583

 

Customer relationships

 

 

 

 

32,541

 

 

 

30,603

 

Trade names

 

 

 

 

17,597

 

 

 

16,307

 

Domain names

 

 

 

 

186

 

 

 

190

 

Acquired databases

 

 

 

 

29,741

 

 

 

24,897

 

Non-competition agreements

 

 

 

 

1,653

 

 

 

719

 

 

 

 

 

$

104,361

 

 

$

87,445

 

 

The amount associated with Purchased IP and capitalized litigation costs is mainly related to the intellectual property we purchased from Ole Poulsen (“Purchased IP”) pursuant to the Intellectual Property Purchase Agreement dated October 14, 2014 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 acquired proprietary technology, customer relationships, trade names, domain names, acquired databases, and non-competition agreements all represent the fair values of intangible assets acquired as a result of the Fluent Acquisition and Q Interactive Acquisition.

Amortization expenses of $2,867 and $16 were included in depreciation and amortization expenses for the three months ended June 30, 2016 and 2015, respectively, and $5,393 and $28 for the six months ended June 30, 2016 and 2015, respectively. As of June 30, 2016, there were intangible assets of $3,562 and $1,502, 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.

 

 

 

 

As of June 30, 2016, estimated amortization expenses related to the Company’s intangible assets for the remainder of 2016 through 2021 and thereafter are as follows:

 

(In thousands)

 

 

 

 

Year

 

June 30, 2016

 

Remainder of 2016

 

$

6,838

 

2017

 

 

13,876

 

2018

 

 

13,583

 

2019

 

 

13,253

 

2020

 

 

13,018

 

2021 and thereafter

 

 

43,793

 

 

 

$

104,361