Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Operating Leases

     The Company has lease agreements to rent office space in Boston, Massachusetts (corporate headquarters), Lewiston, Maine, Princeton, New Jersey, and Beijing, China, expiring in 2014 or earlier. The Company also has lease agreements to rent data center space in Wakefield, Massachusetts, expiring in 2015, and Boston, Massachusetts, expiring in 2013. The terms of the Boston and Maine office leases as well as the data center leases include escalating rent and a free rent period. Accordingly, the Company recorded a deferred rent liability related to the free rent and escalating rent payments and rent is being recognized on a straight-line basis over the terms of the leases. At September 30, 2011 and December 31, 2010, $0.3 million and $0.2 million, respectively, are included in accrued expenses and other long-term liabilities related to the deferred rent.

     Future non-cancellable minimum lease payments under all operating leases as of September 30, 2011, are as follows (in thousands):

Remainder of 2011	$	530
2012		2,239
2013		2,078
2014		943
2015		412
Total	$	6,202

     In October 2011, the Company amended its Boston, Massachusetts headquarters lease to include additional space and to extend the term of the lease. This amendment resulted in an increase in future minimum lease payments of $0.1 million, $0.3 million, $0.5 million, $0.9 million, $1.4 million, and $1.4 million for 2011, 2012, 2013, 2014, 2015 and 2016, respectively.

Other Non-cancellable Commitments

     The Company has non-cancellable commitments primarily consisting of advertising and marketing agreements and data center hosting arrangements.

     Future minimum payments under non-cancellable commitments are as follows (in thousands):

Remainder of 2011	$	2,597
2012		1,265
2013		722
2014		321
Total	$	4,905

Litigation

     In August 2010, Oasis Research, LLC, (“Oasis Research”), filed a lawsuit against the Company and several of its competitors and other online technology companies in the U.S. District Court for the Eastern District of Texas, alleging that our online backup storage services and the other companies’ products or services infringe certain of Oasis Research’s patents. Oasis Research seeks an award for damages in an unspecified amount. Oasis Research does not currently seek an injunction. Neither the ultimate outcome of this litigation nor an estimate of a probable loss or any reasonably possible losses can be assessed at this time. The Company intends to defend itself vigorously.

     In the ordinary course of business the Company is involved in litigation incidental to its business; however, the Company’s management is not aware of any pending legal proceeding or other loss contingency, whether asserted or unasserted, affecting the Company for which it might become liable or the outcome of which management expects to have a material impact on the Company.