Gator.com offers a free software download that is intended as a “companion” to web surfing. Its main function is to recognise and automatically complete registration forms on web sites. However, Gator.com makes its money from selling ads. When users of the software are looking at web sites, ads of Gator.com’s sponsors pop-up over the top of the existing banner ads on a site.
Gator.com’s lawsuit asks a San Francisco federal district court to declare that it is not participating in any illegal activity through its use of the pop-up ads. It is also seeking punitive damages against the IAB for “libellously disparaging its service” and causing the company to lose sales.
In response to Gator.com’s lawsuit, the IAB has issued a statement claiming that: “the unfair business practices of Gator.com substantially infringe on the trade mark, copyright, and intellectual property rights of web publishers and advertisers, and do not adequately protect consumers from unauthorised content”. The IAB added that it “intends to immediately pursue options on behalf of its members with the appropriate federal agencies”.