Two of the largest free ISPs in the US have been engaged in a
battle over patented banner ad technology. Yesterday, NetZero won a
temporary restraining order against Juno on the grounds that Juno
is infringing its patent.
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."
