Gator sued over pop-up ads
Thu Jun 27, 7:38 PM ET
Stefanie Olsen
A group of publishers this week sued the Gator online advertising network ( news - external web site) in a bid to bar the company from serving pop-up ads on their Web sites without their permission.
The suit was filed Tuesday in federal court in Alexandria, Va. The Washington Post, The New York Times, Dow Jones and seven other publishers allege that Gator's ads violate their copyrights and steal revenue.
Redwood City, Calif.-based Gator is "essentially a parasite on the Web that free rides on the hard work and the investments of plaintiffs and other Web site owners," according to the filing. "In short, Gator sells advertising space on the plaintiffs' Web sites without (their) authorization and pockets the profits from such sales."
Gator develops software that manages passwords and fills out forms for about 10 million Web surfers, who often download the application unwittingly through other popular file-sharing programs. Also bundled in Gator's software is a program called OfferCompanion, which monitors Web surfing behavior and delivers targeted pop-up ads to viewers. For example, a Web surfer may see an advertisement for Ford Motor--delivered by Gator--while visiting Toyota.com.
The lawsuit is the latest legal tussle for Gator. Last year, the Interactive Advertising Bureau (IAB) criticized the company for selling banner ads that obscure those sold by online publishers. Gator sued the IAB, alleging "malicious disparagement" over its statements, but the two parties found common ground when Gator agreed to stop selling banner overlays.
Earlier this year, catalog retailer L.L. Bean sent Gator a cease-and-desist letter, attempting to stop the company from launching ads on its site. Gator countersued, and a case is still pending in Oregon.
The latest suit highlights mounting tension over tactics used by Gator and others. Earlier this year, WeightWatchers.com sued rival DietWatch.com for using Gator to deliver ads to visitors of its site. On June 11, a court granted WeightWatchers a permanent injunction barring DietWatch from serving ads on its site.
This week's action charges that Gator violates the publishers' copyright and trademark rights. By delivering unauthorized pop-up ads, Gator is altering the intended display of the work, a right that has been recognized by the Supreme Court, said Terence Ross, a lawyer for the plaintiffs.
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