LowerMyBills copyright infringement case against NexTag verdict reached.
LowerMyBills issued a press release today announcing their victory in a suit filed against mortgage competitor NexTag in 2004. NexTag must pay LowerMyBills.com $200,000 in accordance with the judgment.
What's the suit about? Ads. Specifically, LowerMyBills is among the most prolific and successful display advertiser. The majority to date have involved some design theme, ex: peackocks, flamingos, corn, a hippy wizard, babies, dogs, etc. combined / integrated with a graphic representation of the 50 states.
As a company LowerMyBills is known for sending out cease and desists for ads that they feel are similar. This is no doubt the case for the particular NexTag ad in question. While LowerMyBills would like to have exclusive right to any "50 states" themes (which is too far reaching), this suit gives them protection with respect to particular instances and suggests that companies who run similar ads could face damages on a per ad basis.
I like and respect Adteractive, but my guess is that LowerMyBillslegal department has a bulls-eye around them.
I recommend also reading Greg Yardley's and Beth Kirsch's comments.
Begin release:
LowerMyBills.com Obtains Judgment in Groundbreaking
Internet Copyright Infringement Suit
Company paves way for protection of online advertisements
Santa Monica, Calif., Jan. 23, 2006 — LowerMyBills.com®, an Experian company, today announced it obtained a court judgment in its copyright infringement lawsuit against NexTag®, an online comparison shopping site. NexTag must pay LowerMyBills.com $200,000 in accordance with the judgment.
The judgment against NexTag is among the first LowerMyBills.com is aware of obtained in a lawsuit involving claims of copyright infringement of online advertising, paving the way for other online advertisers to protect their intellectual property.
LowerMyBills.com, a leading online mortgage lead generator in the United States, is one of the top five Internet advertisers and ranks number one among financial advertisers. The company has earned brand recognition from consumers for its whimsical personality online and eye-catching banner ads.
LowerMyBills.com filed suit against NexTag in December 2004 for copyright infringement, false designation of origin and unfair competition, claiming that NexTag copied multiple LowerMyBills.com advertisements in order to drive traffic and create interest in NexTag’s services.
“We believe this is the first time a substantial judgment has been received in a copyright infringement lawsuit involving Internet advertising, setting an important precedent,” said Matt Coffin, president and founder of LowerMyBills.com. “‘Copycat’ advertisements are confusing and misleading for online consumers, as they knowingly lead them to do business with companies they neither know nor trust.”
The complaint against NexTag was filed by LowerMyBills.com in the U.S. District Court for the Central District of California.
LowerMyBills.com is currently pursuing separate lawsuits against other companies for copyright infringement of its online advertisements.
About LowerMyBills.com
LowerMyBills.com is part of Experian InteractiveSM and the premier, free online service for consumers to compare the lowest rates on monthly bills and reduce the cost of living. LowerMyBills.com is the one-stop destination that offers savings through relationships with more than 300 service providers across 20 categories, including home loans, credit cards, long distance, auto and health insurance, and wireless services. To date, LowerMyBills.com has helped more than 5 million consumers save more than $1 billion with lower rates. The company is based in Santa Monica, Calif. For more information, visit the company’s Web site at www.LowerMyBills.com.
