If anyone is interested, read on...
POP up ads - Spam or Not?

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>From the NY Times
By BOB TEDESCHI
June 28 2002
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A group of 10 Web site publishers is suing Gator, an online advertising and
information storage company, to stop it from placing pop-up ads over their
sites without permission.

The publishers, which include the Washington Post Company, Dow Jones &
Company, Tribune Interactive and The New York Times Company, filed suit on
Tuesday in United States District Court for the Eastern District of
Virginia.

A spokeswoman for Gator, Mandy Mladenoff, said last night that the company
had issued a statement that it was considering a countersuit against the
publishers.

The suit against Gator maintains that its pop-up ads violate both copyright
and trademark laws and that they allow Gator to profit unjustly from the
user traffic generated by these Web sites.

Gator's eWallet software helps consumers fill out password and shipping
information and remembers it as they visit different Web sites. But the
software comes bundled with technology that displays pop-up ads over Web
sites visited by Gator users. Thirty-three million Gator users viewed such
ads last month, according to Media Metrix.

Sometimes those ads display ads for direct competitors of the sites being
visited. For instance, the complaint contends that some Gator users saw an
ad for the online employment site HotJobs.com when they visited Dow Jones'
CareerJournal .com.

When one of Gator's pop-up ads appears over a publisher's Web site, "the
inference consumers make is that the publisher has authorized it to be
there, so it must be legitimate," said Terence Ross, a Washington-based
lawyer with Gibson, Dunn & Crutcher, which is arguing the case on the
publishers' behalf. But that practice, he said, constitutes a trademark
violation.

Gator issued a written response to the suit yesterday, saying that the
publishers' contention that software programs cannot lawfully display pop-up
windows is "ridiculous."

"It would mean that AOL Instant Messenger, Yahoo Messenger, Microsoft
Outlook, and dozens of other software applications that automatically
display information in separate windows, are illegal," said Gator's chief
executive, Jeff McFadden.

On its Web site, Gator informs customers that its OfferCompanion software
"delivers advertising, information and software based on Web sites you view"
and is included with the password software.

Mr. Ross, the publishers' lawyers, said such messages were not effective
enough, and he pointed to surveys, conducted by the plaintiffs, showing that
16 percent of Gator customers did not know the service placed ads on their
computers.

In the last two years, Gator has filed several lawsuits in California
against companies and organizations that complained about its online
advertising technology.

Because little case law has been created along these lines, "this is an
important case," said Jeffrey D. Neuburger, a partner with the New York law
firm of Brown Raysman Millstein Felder & Steiner. "This sets a precedent for
guiding the use of emergent technologies in the advertising market."

The publishers are seeking a preliminary injunction to prevent Gator from
delivering pop-up ads to visitors to the plaintiffs' Web sites while the
trial continues. Ultimately, the publishers want that remedy made permanent,
along with monetary damages for advertising revenue Gator made on their Web
sites and punitive damages.

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