FC: Can you cover ads on the web? Gator lawsuit seeks to find out

From: Declan McCullagh (declanat_private)
Date: Wed Aug 29 2001 - 08:03:51 PDT

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    From: rmsat_private (Richard M. Smith)
    To: "'Declan McCullagh'" <declanat_private>
    Subject: Yahoo - Gator Sues Interactive Advertising Bureau -- IAB --
    Date: Tue, 28 Aug 2001 20:20:23 -0400
    
    <http://biz.yahoo.com/bw/010828/280331.html>http://biz.yahoo.com/bw/010828/280331.html
    
    Tuesday August 28, 1:37 pm Eastern Time
    
    
    Press Release
    
    SOURCE: Gator
    
    
    Gator Sues Interactive Advertising Bureau -- IAB --
    
    
    
    Gator Asserts Legality of its Newest Ad Vehicle, & Accuses Association of 
    Unfounded Accusations and Threats
    
    REDWOOD CITY, Calif.--(BUSINESS WIRE)--Aug. 28, 2001--Gator filed a lawsuit 
    Monday in federal court against the Interactive Advertising Bureau (IAB) to 
    protect the right to utilize Gator's newest advertising vehicle, the 
    Companion Pop-up Banner, which occasionally pops up to deliver a relevant 
    advertisement in a window that floats over the banner advertisements on 
    some web pages. The suit was brought in response to the IAB's unfounded 
    accusations regarding the legality of this new advertising vehicle and 
    their threats of legal action against Gator. The lawsuit seeks the federal 
    court's declaration that the IAB's complaints concerning the company's 
    Companion Pop-up Banner Windows are unfounded.
    
    ``The danger to the IAB's online publishers isn't Gator -- the danger is 
    irrelevant advertising,'' said Gator CEO Jeff McFadden. ``Millions of web 
    users are already ignoring 99.8% of current banners ads, and publishers are 
    perishing at an alarming rate. We believe our proven targeting model can 
    dramatically help to rejuvenate online advertising, so we refuse to allow 
    the IAB to falsely claim that Pop-up Banners are illegal or to interfere in 
    any way with our advertisers' right to deliver relevant advertising, or our 
    consumers' right to decide for themselves what is or isn't displayed on 
    their own computer screens.
    
    ``I can understand why the IAB, who represents our competitors, doesn't 
    like our Pop-up Banner Windows, but their claims about its legality are 
    utterly baseless,'' emphasized McFadden. ``As a leading web property 
    representing over eight million users and 200 advertisers, we have a 
    responsibility to aggressively defend the rights of all concerned,'' 
    McFadden continued. ``We will vigorously defend our new Pop-up Banner 
    vehicle, just as we have in the past year successfully defended our other 
    ad vehicles.''
    
    It's All About Relevance
    
    Analysts say Gator's marketing tactics are extremely effective. In an 
    August 10, 2001 ``Weekly Click Through'' report, Thomas Weisel Partners 
    asserted, ``'Gatoring' just might be the most cost-effective -- and just 
    plain effective -- way to reach consumers now, in our view.''
    
    ``The Gator model offers a powerful proposition to advertisers,'' stated 
    McFadden. ``Our technology might, for example, anonymously recognize when 
    one of our eight million users looks at minivans on an auto-maker's web 
    site, and respond by displaying minivan ads in Pop-up Banner windows. Most 
    web sites have no idea which of their visitors is shopping for a minivan. 
    During the past year, Gator's pop-up vehicles and behavioral marketing 
    engine enabled our Fortune 500 clients to enjoy click-through rates up to 
    50 times greater than traditional online advertising.''
    
    ``Online banner advertising is broken, and it's time for publishers to stop 
    applying the same rules and guidelines to online advertising that have been 
    applied to offline mass marketing,'' stated Frederick Newell, author of The 
    New Rules of Marketing, Loyalty.com, and most recently Wireless Rules. ``If 
    Gator is willing to use their technology to help publishers deliver 
    relevant advertising that is perceived as useful information to consumers, 
    then those publishers will be doing the consumer a great service. We have 
    to give the consumer what they want because the consumer is what this is 
    all about.''
    
    Is it Legal?
    
    ``We understand that Web site publishers want total control over what 
    consumers see. We believe that the central issue is that every consumer has 
    the right to decide what software they want to run on their own personal 
    computer, and to decide what information they want to display on their own 
    computer screen,'' said L. Scott Primak, Gator Director of Legal Affairs. 
    ``When consumers download Gator's free software they are shown an 
    informational screen that clearly describes that they are getting our 
    software at no charge and are allowing Gator to display advertising and 
    information based upon the web sites they visit. The consumer must click a 
    permission acceptance button to install the software.''
    
    Gator's Pop-up Banner Windows are separate from the browser and don't 
    modify the underlying browser window or the content of any web page. The 
    consumer sees the site publishers' ad first, and can choose which ad to 
    click. The consumer also can set the time delay or change the default 
    location of the branded Pop-up Banner Windows. Like any other window, the 
    consumer can drag a Pop-up Banner Window to a different location or click 
    on the ``X'' to close the window. ``Consumer empowerment is a double-edged 
    sword,'' said McFadden, ``because consumers can easily remove our software 
    from their computers, we must continually deliver value to them if we want 
    to retain them as Gator users.''
    
    About Gator
    
    Gator produces a suite of software that enriches the Internet experience 
    for millions of users, and has built one of the world's largest in-context 
    behavioral marketing networks. Gator has quickly become the leader in the 
    online companion software space, assisting users over 100 million times at 
    over 700,000 unique web sites each month. Gator's enterprise clients 
    include the leading Fortune 500 advertisers in Automotive, Financial 
    Services, Entertainment, Retail and Consumer Package Goods. Gator is a 
    privately held company based in Redwood City, CA -- 
    <http://www.Gator.com>http://www.Gator.com.
    
    For interviews or more information contact A.J. Desjardins at Niehaus Ryan 
    Wong, Inc., 650/827-7022, <mailto:ajat_private>ajat_private
    
    Contact:
    
    
          Niehaus Ryan Wong, Inc.
          A.J. Desjardins, 650/827-7022
          <mailto:ajat_private>ajat_private
    
    
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    From: rmsat_private (Richard M. Smith)
    To: "'Declan McCullagh'" <declanat_private>
    Subject:  Interactive Advertising Bureau -IAB- Asserts Gator.com's Business 
    Practices Violate the Contract, Trademark and Copyright Interests of Web 
    Publishers and Advertisers
    Date: Tue, 28 Aug 2001 16:15:50 -0400
    Message-ID: <002201c12ffe$3db2a100$0f01a8c0at_private>
    MIME-Version: 1.0
    Content-Type: multipart/mixed;
             boundary="----=_NextPart_000_0023_01C12FDC.B6A10100"
    X-Priority: 3 (Normal)
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    This press release was just sent out today from the Interactive
    Advertising Bureau (IAB) expressing their displeasure with the Gator
    browser plugin.  Since the Gator plugin is working on a user's behalf,
    there might be a fair-use argument to be made here.
    
    Richard
    
    ================================================================
    
      http://biz.yahoo.com/bw/010828/282178.html
    
    Unfair Competition and Deceptive Practices in Violation of Federal Laws
    
    NEW YORK--(BUSINESS WIRE)--August 28, 2001-- Believing that the unfair
    business practices of Gator.com substantially infringe on the trademark,
    copyright and intellectual property rights of Web publishers and
    advertisers, and do not adequately protect consumers from unauthorized
    content, the Interactive Advertising Bureau (IAB), the leading voice of
    the interactive advertising industry, intends to immediately pursue
    options on behalf of its members with the appropriate federal agencies.
    
    Gator.com is a company that offers a service that results in the
    deception of consumers and advertisers and interferes with the valid
    contractual relationships between Web publishers and their advertisers.
    Its service - OfferCompanion(SM), software bundled with digital wallet
    Gator - contains a feature, Companion Popup Banner, which obscures
    advertising and/or editorial content on Web sites through the use of
    specially designed pop-up windows and without the consent of Web sites
    or innocent third party advertisers
    
    ``Consumers who choose to use the Gator.com software for various
    services may not be aware that in return for these services, they are
    allowing Gator.com to cover up advertising sold by the Web site with
    advertising sold by Gator.com. The consumer has not replaced the
    advertising by him or herself. Gator.com has done it, and is thus
    presenting a false and misleading business relationship between the
    sites and the substituted advertisers,'' said IAB President & CEO Robin
    Webster. ``Additionally, they are combining sites' copyrighted content
    with advertising which may not meet the quality and content requirements
    of particular sites. We also believe that this service illegally
    interferes with valid contractual business relationships.''
    
    ``Gator.com's practice of visually altering publishers' content and
    obscuring the advertisements of unsuspecting advertisers, without
    notice, substantially interferes with the contractual relationships
    between Web publishers and advertisers,'' Ms. Webster continued. ``In
    effect, Gator.com is falsely implying relationships that do not exist.
    Publishers and advertisers who have chosen to be associated with one
    another are having those relationships damaged and are suffering grave
    financial harm by losing business opportunities. Consumers are similarly
    being deceived by the company and are being denied the full experience
    of the Web sites as intended by the publishers.''
    
    The IAB supports its members' efforts to protect their intellectual
    property and business relationships with their advertisers. It is
    currently in discussion with a number of interactive advertising
    industry organizations in urging appropriate governmental agencies to
    investigate misleading business practices. The IAB welcomes the
    participation of other parties in the interactive advertising industry
    that are interested in protecting their intellectual property rights and
    the advertising they have sold or purchased.
    
    About the IAB
    
    Founded in 1996, the IAB is the industry's leading interactive
    advertising association. Its activities include evaluating and
    recommending standards and practices, fielding research to document the
    effectiveness of the interactive medium, and educating the advertising
    industry about the use of interactive advertising. Membership includes
    companies that are actively engaged in the sale of interactive
    advertising.
    
    
    ------------------------------------------------------------------------
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    Contact:
    
          FAVA PR
          Stu Ginsburg, 917/206-3088
          917/554-0725 -- cell
          sginsburgat_private
    
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