The publishers claimed that Gator was infringing their copyright and stealing their revenue by selling pop-up ads that appeared when users of the company’s software visited their web sites.
The publishers have asked for a permanent injunction, damages and the return of Gator’s revenue from the ads. In the suit, the publishers have characterised Gator as a “parasite on the web that free rides on the hard work and the investments [of the publishers] and other web site owners.”
Gator’s software manages passwords and fills out application forms for about 22 million internet users. The company also produces software that monitors web surfers’ behaviour and delivers targeted pop-up ads. The software allows surfers to view a company’s advertisement while they are visiting a competitor’s web site.
Last month, WeightWatchers won a case against rival DietWatch.com, that was using Gator to deliver ads to visitors of WeightWatchers.com. Also, Gator has been criticised by the Interactive Advertising Bureau for selling banner ads that obscure those sold by on-line publishers.
A spokesman for the publishers said: “This is only a first step in the legal process, but it sends a clear signal that the [publishers] are likely to succeed on the merits of their claims against Gator.”
Gator stated that, since the injunction only bans placing ads on certain publishers’ web sites, it will continue business “as usual.”
Gator CEO, Jeff McFadden, said:
“We are highly confident that once all the facts are presented in the upcoming trial - no Court will issue a ruling eliminating consumers' right to decide for themselves what is displayed on their own computer screens. Such a ruling would attack a consumer's right to use hundreds of popular software applications that automatically display separate windows while the consumer is surfing the internet.”
“This flies in the face of the very nature of the Windows operating system and is ridiculous. It would mean that AOL Instant Messenger, Microsoft Outlook and dozens of other software applications that automatically display information in separate windows are illegal.”