10. Commitments and Contingencies Operating Leases The Company leases two office spaces in New Jersey; one in San Mateo, California; and one in Durham, North Carolina under non-cancellable operating leases which expire in December 2012, March 2014, December 2014 and December 2014, respectively. Rent expense for the years ended December 31, 2011, 2010 and 2009 was $2.5 million, $2.0 million and $0.5 million, respectively. Future minimum lease payments under these leases as of December 31, 2011 are as follows (in thousands): Operating Years Ending December 31, Leases 2012 $ 2,861 2013 2,565 2014 1,938 $ 7,364 Minimum Royalty and Content License Fee Commitments The Company s royalty and license fee expenses consist of fees that the Company pays to branded content owners for the use of their intellectual property. Royalty and license fee expenses are expensed as incurred. The Company s contracts with some licensors include minimum guaranteed royalty payments, which are payable regardless of the ultimate sales of subscriptions. Because significant performance remains with the content owner, including the obligation on the part of the content owner to keep its content accurate and up to date, the Company records royalty payments as a liability when incurred, rather than upon execution of the agreement. Typically, the terms of the Company s royalty agreements call for the Company to pay the content owner either a percentage of sales of subscription products that use such content or are based upon the number of users to subscription products that use such content. However, certain royalty agreements require payment to content owners only after funds are received from the Company s customers. Payments are due within 30-45 days of the designated royalty period, which is typically either three or six months. Royalty agreements require the Company to report subscription sales data and as well as data regarding the number of users for subscription products that use such data. Royalty agreements may initially be signed for mul