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NET NEWS

By ALM Staff | Law Journal Newsletters |
October 02, 2003

The advertiser behind those pesky pop-up ads that appear while visiting the NYTimes.com and other major news sites has settled a dispute over the unauthorized and parasitic practice.

According to Terence Ross, the lead attorney for the publishers, the terms of the settlement are confidential. 

The parent companies of The New York Times, USA Today, The Wall Street Journal and The Washington Post along with the digital arms of Knight Ridder and Conde Nast were among news outlets that sued Gator Corp. last June over its pop-up ads.

U.S. District Judge Claude Hilton in Alexandria, VA granted a preliminary injunction ordering Gator to stop delivering pop-up ads at the sites run by those companies.

The trial was to begin last month but was postponed while settlement talks continued.

Ross would not say whether Gator could now serve pop-up ads over the news sites, or whether the settlement included any payments.

Officials at Gator, based in a Redwood City, CA, have declined comment.

Internet users inherit Gator's advertising software when they install a separate product for filling out online forms and remembering passwords. Gator also comes equipped with free software from other companies, including games and file-sharing programs.

As users surf the Internet, Gator runs in the background and delivers advertisements that plaintiffs said obscured their own ads and content.

Though the Gator ads are marked 'GAIN' ' for Gator Advertising and Information Network ' the publishers worried that many consumers did not know the difference and would instead blame the news organization and its site for an unpleasant experience.

Gator, which claims 30 million active users and 500 advertisers, has contended that its pop-up windows are no different than what happens when a user runs instant messaging, e-mail or other programs in separate windows while surfing a Web site.

Gator still faces similar lawsuits from United Parcel Service, which said unauthorized pop-ups have included ads for rival FedEx Corp., and from Six Continents Hotels, which operates Holiday Inn and Crowne Plaza and complains that Gator directed visitors to deals from Marriott and other competitors.

Other lawsuits, including one filed Jan. 27 by MetroGuide.com travel service, have targeted Gator's advertisers, without naming the company as a defendant.

The advertiser behind those pesky pop-up ads that appear while visiting the NYTimes.com and other major news sites has settled a dispute over the unauthorized and parasitic practice.

According to Terence Ross, the lead attorney for the publishers, the terms of the settlement are confidential. 

The parent companies of The New York Times, USA Today, The Wall Street Journal and The Washington Post along with the digital arms of Knight Ridder and Conde Nast were among news outlets that sued Gator Corp. last June over its pop-up ads.

U.S. District Judge Claude Hilton in Alexandria, VA granted a preliminary injunction ordering Gator to stop delivering pop-up ads at the sites run by those companies.

The trial was to begin last month but was postponed while settlement talks continued.

Ross would not say whether Gator could now serve pop-up ads over the news sites, or whether the settlement included any payments.

Officials at Gator, based in a Redwood City, CA, have declined comment.

Internet users inherit Gator's advertising software when they install a separate product for filling out online forms and remembering passwords. Gator also comes equipped with free software from other companies, including games and file-sharing programs.

As users surf the Internet, Gator runs in the background and delivers advertisements that plaintiffs said obscured their own ads and content.

Though the Gator ads are marked 'GAIN' ' for Gator Advertising and Information Network ' the publishers worried that many consumers did not know the difference and would instead blame the news organization and its site for an unpleasant experience.

Gator, which claims 30 million active users and 500 advertisers, has contended that its pop-up windows are no different than what happens when a user runs instant messaging, e-mail or other programs in separate windows while surfing a Web site.

Gator still faces similar lawsuits from United Parcel Service, which said unauthorized pop-ups have included ads for rival FedEx Corp., and from Six Continents Hotels, which operates Holiday Inn and Crowne Plaza and complains that Gator directed visitors to deals from Marriott and other competitors.

Other lawsuits, including one filed Jan. 27 by MetroGuide.com travel service, have targeted Gator's advertisers, without naming the company as a defendant.

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