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Intangible assets, net
9 Months Ended
Sep. 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

 

September 30, 2016

 

 

December 31, 2015

 

Gross amount:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

10 years

 

$

-

 

 

$

1,659

 

Software developed for internal use

 

3-10 years

 

 

8,972

 

 

 

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

 

 

 

 

 

 

108,798

 

 

 

88,149

 

Accumulated amortization:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

 

 

 

-

 

 

 

(34

)

Software developed for internal use

 

 

 

 

(321

)

 

 

(50

)

Acquired proprietary technology

 

 

 

 

(1,983

)

 

 

(133

)

Customer relationships

 

 

 

 

(3,643

)

 

 

(272

)

Trade names

 

 

 

 

(691

)

 

 

(50

)

Domain names

 

 

 

 

(8

)

 

 

(1

)

Acquired databases

 

 

 

 

(2,452

)

 

 

(155

)

Non-competition agreements

 

 

 

 

(281

)

 

 

(9

)

 

 

 

 

 

(9,379

)

 

 

(704

)

Net intangible assets:

 

 

 

 

 

 

 

 

 

 

Purchased IP and capitalized litigation costs

 

 

 

 

-

 

 

 

1,625

 

Software developed for internal use

 

 

 

 

8,651

 

 

 

2,521

 

Acquired proprietary technology

 

 

 

 

11,549

 

 

 

10,583

 

Customer relationships

 

 

 

 

31,343

 

 

 

30,603

 

Trade names

 

 

 

 

17,366

 

 

 

16,307

 

Domain names

 

 

 

 

183

 

 

 

190

 

Acquired databases

 

 

 

 

28,840

 

 

 

24,897

 

Non-competition agreements

 

 

 

 

1,487

 

 

 

719

 

 

 

 

 

$

99,419

 

 

$

87,445

 

 

The amount associated with Purchased IP and capitalized litigation costs, included in the Information Services segment, is mainly related to the intellectual property purchased by Company subsidiary The Best One, Inc. (“TBO”) from Ole Poulsen (“Purchased IP”) pursuant to the Intellectual Property Purchase Agreement dated October 14, 2014 and related legal and other costs incurred and paid in defending the Company’s claims to the Purchased IP against TransUnion Risk and Alternative Data Solutions, Inc. As of September 30, 2016, the Company wrote off the remaining balance of Purchased IP and capitalized litigation costs of $4,055, which was reflected in general and administrative expenses in the condensed consolidated statements of operations for the three and nine months ended September 30, 2016, as a result of an unfavorable ruling in relation to the litigation. See Note 12 “Commitment and contingencies” for additional information regarding the litigation involving the Purchased IP.

 

The gross amount associated with software developed for internal use mainly represents 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 the Q Interactive Acquisition.

 

Amortization expenses of $3,333 and $12 were included in depreciation and amortization expenses for the three months ended September 30, 2016 and 2015, respectively, and $8,726 and $40 for the nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016, intangible assets of $3,325, included into the gross amounts of software developed for internal use, have not started amortization. These intangible assets will start to amortize when they are put into use.

 

As of September 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

 

September 30, 2016

 

Remainder of 2016

 

$

3,395

 

2017

 

 

13,846

 

2018

 

 

13,553

 

2019

 

 

13,197

 

2020

 

 

12,790

 

2021 and thereafter

 

 

42,638

 

 

 

$

99,419