ISPs in dispute over patent for display of banner ads

Juno’s web site displays a “floating advertising window” that NetZero believes infringes its patent. The order granted by the federal court in Florida temporarily prohibits Juno from displaying third-party advertisements in its ad banner window, although Juno can continue advertising its own services in this manner.

The patent, which was issued last month, applies to a process that enables an ISP to display advertisements or messages through a window that is separate from the browser.

NetZero employs this technology through a persistent, on-screen window that serves as a navigational tool while displaying advertisements and customised messages the entire time a user is on-line. A number of ISPs in addition to Juno have utilised a similar process or technology to generate advertising revenues. NetZero believes the patent covers the processes and technologies used by certain other ISPs.

The order extends until mid-March 2001, at which time another hearing is scheduled where NetZero will ask the court to extend and possibly expand the order until the trial. The judge set a trial date of July 2001.

Mark R. Goldston, NetZero chairman and chief executive officer said: “Other ISPs should take note of the court's ruling and carefully consider their use of similar ad banner windows.”

Juno said that the banner advertising that is now prohibited accounts for less than 4% of its revenues.

Charles Ardai, Juno's president and chief executive officer said:

"It is our contention, however, that even this narrowly defined form of advertising does not in fact infringe on any valid patent issued to NetZero. For this reason, we still intend to vigorously contest the allegations made by NetZero in this lawsuit. Moreover, we continue to believe that NetZero is infringing on a valid patent issued to Juno, and look forward to pursuing, through appropriate legal channels, the resolution of both this lawsuit and the one we filed earlier against NetZero."