Background
According to this case, Gator Corp., an Internet advertising firm, creates pop-up software such as “adware” or “spy-ware” that manages passwords and form-filling for more than 10 million Web surfers who often download the application through other popular file-sharing programs. This software can help companies to put their advertisements on their competitor’s website automatically. This pop-up ads software monitors Web surfing behavior and delivers targeted pop-up ads to viewers. Therefore, Gator will offer useful information to its customers so it can help them to infringed upon competitor’s website. Gator sells this kind of adware or spy-ware to its customers without paying the advertisement fee to those companies that Gator shows its customers’ advertisement on their websites, because Gator did not permit by those companies. Thus the issue in this case may be summarized as follows:
1. Some critics argue that it is unfair competition, because Gator’s pop-up advertisements exist on other companies’ websites without any cost. The companies on whose websites Gator shows competitors’ advertisements, may decrease their sales volume, because Gator gives the consumers more information to compare the products that they want.
2. Several large American publish companies accuse Gator of violating their online business interests because Gator did not permit by those companies and pay the advertisements’ fee.
3. Columnist Lee Gomes, works in Wall Street Journal which is one of the companies suing Gator, thinks the publishers should try to persuade instead of suing because that the publishers accuse Gator may affect themselves control what they do with their computers and interact with the internet.
4. Fred von Lohman, the online advocacy group Electronic Frontiers Foundation’s spokesperson, agrees with Gator, because he thinks people make decision by themselves not because of advertisements.
5. Some people, who do not agree with the pop-up advertisements,...
Abstract
Gator Corp. is an Internet advertising firm that makes software that monitors the actions of online users, and displays those ads when certain Web sites are visited. Gator has cut deals with various software makers to have them include its software on their programs (2002). As a result, millions of computer owners have Gator's software on their PCs. Gator also gives away software like "e-wallet," which helps users fill out forms on Web sites, but this free software comes with Gator's "adware" or "spy-ware" built in (20002). Gator sells those pop-up ads to advertisers who aim to reach people that visit certain Web sites, but without paying the fees that the owners of those Web sites being visited would charge (2002). Gator makes a point that its ads provide useful information for shippers who want to compare prices and products using "behavioral marketing" tactics (2002). Critics of Gator refer to the company as a "parasite" seeing as its siphons money from Web sites that belong to others (2002). Not only does Gator need other peoples' websites to exist, its program actually ends up threatening the existence of those sites by stealing income they need in order to stay running (2002). There have been many litigations against Gator from those who deem it to practice unfair competition. Statements have been made about the lawsuits against Gator, claiming that though Gator should not be deemed illegal and not allowed to function, those who have Gator adware on their PCs should be informed of the program and have the option to delete it. The publishers' lawsuit against Gator was recently settled out of court though the terms of the settlement were not released to the public (2007). The settlement only really affected the parties participating in the suit, and Gator tried to amend its negative reputation by changing its name to Claria...
Background
According to this case, Gator Corp., an Internet advertising firm, creates pop-up software such as “adware” or “spy-ware” that manages passwords and form-filling for more than 10 million Web surfers who often download the application through other popular file-sharing programs. This software can help companies to put their advertisements on their competitor’s website automatically. This pop-up ads software monitors Web surfing behavior and delivers targeted pop-up ads to viewers. Therefore, Gator will offer useful information to its customers so it can help them to infringed upon competitor’s website. Gator sells this kind of adware or spy-ware to its customers without paying the advertisement fee to those companies that Gator shows its customers’ advertisement on their websites, because Gator did not permit by those companies. Thus the issue in this case may be summarized as follows:
1. Some critics argue that it is unfair competition, because Gator’s pop-up advertisements exist on other companies’ websites without any cost. The companies on whose websites Gator shows competitors’ advertisements, may decrease their sales volume, because Gator gives the consumers more information to compare the products that they want.
2. Several large American publish companies accuse Gator of violating their online business interests because Gator did not permit by those companies and pay the advertisements’ fee.
3. Columnist Lee Gomes, works in Wall Street Journal which is one of the companies suing Gator, thinks the publishers should try to persuade instead of suing because that the publishers accuse Gator may affect themselves control what they do with their computers and interact with the internet.
4. Fred von Lohman, the online advocacy group Electronic Frontiers Foundation’s spokesperson, agrees with Gator, because he thinks people make decision by themselves not because of advertisements.
5. Some people, who do not agree with the pop-up advertisements,...
Abstract
Gator Corp. is an Internet advertising firm that makes software that monitors the actions of online users, and displays those ads when certain Web sites are visited. Gator has cut deals with various software makers to have them include its software on their programs (2002). As a result, millions of computer owners have Gator's software on their PCs. Gator also gives away software like "e-wallet," which helps users fill out forms on Web sites, but this free software comes with Gator's "adware" or "spy-ware" built in (20002). Gator sells those pop-up ads to advertisers who aim to reach people that visit certain Web sites, but without paying the fees that the owners of those Web sites being visited would charge (2002). Gator makes a point that its ads provide useful information for shippers who want to compare prices and products using "behavioral marketing" tactics (2002). Critics of Gator refer to the company as a "parasite" seeing as its siphons money from Web sites that belong to others (2002). Not only does Gator need other peoples' websites to exist, its program actually ends up threatening the existence of those sites by stealing income they need in order to stay running (2002). There have been many litigations against Gator from those who deem it to practice unfair competition. Statements have been made about the lawsuits against Gator, claiming that though Gator should not be deemed illegal and not allowed to function, those who have Gator adware on their PCs should be informed of the program and have the option to delete it. The publishers' lawsuit against Gator was recently settled out of court though the terms of the settlement were not released to the public (2007). The settlement only really affected the parties participating in the suit, and Gator tried to amend its negative reputation by changing its name to Claria...
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