XML 28 R14.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies

12 Months Ended

Jul. 31, 2017

Commitments and Contingencies [Abstract]

Note 8—Commitments and Contingencies

Legal Proceedings

In March 2014, Saregama India, Limited filed a lawsuit against the Company before the Barasat District Court, seeking approximately $1.6 million as damages and an injunction for copyright infringement. The main ground for the lawsuit was an allegation that the Company avails the plaintiff’s sound recordings through the Company’s platform with full knowledge that the sound recordings have been uploaded and are being communicated to the public without obtaining any license from the plaintiff. There have been no material updates to this matter since filing in March 2014. The Company believes that the possibility of it bearing material liability on the matter is remote.

The Company may from time to time be subject to other legal proceedings that arise in the ordinary course of business. Although there can be no assurance in this regard, the Company does not expect any of those legal proceedings to have a material adverse effect on the Company’s results of operations, cash flows or financial condition.

Lease Commitments

The Company’s future contractual obligations and other commercial commitments at July 31, 2017 were as follows:

Year ended July 31, (in thousands)	2018		2019		Thereafter		Total
Real estate leases	$	202	$	102	$	—	$	304
Software as a Service (“SaaS”) license		223		100		—		323
Total contractual obligations	$	425	$	202	$	—	$	627

Rental expense under operating leases was $289,000 and $244,000 in the years ended July 31, 2017 and 2016, respectively.