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David Jackson over at The Internet Stock Blog has written a good
article going into detail about how the attack on the illegal disemination of spyware and adware may not end with Eliot Spitzer’s suit against Intermix Media (ticker: MIX). More here. This report outlines why and provides a tentative list of other Internet stocks at risk. Stocks mentioned: ASKJ, CD, CNET, FLWS, FWHT, IACI, ICGE, INPC, SPRK, TFSM, THK, TSG, VLCK, and YHOO.
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Major spyware advertisers, like tickle, webdate, american singles etc don’t seem to realize that by stealing traffic from other dating sites via spyware they are opening themselves up to a hole host of legal problems. Websites are now sueing both the advertisers and adware/spyware companies. How long before a dating site sues someone like american singles for copyright infringement/ illegal business practices etc.
All it would take is some site sueing a company like americansingles and then putting out a informative news release about how american singles etc destroys your home computer by funding adware companies via spyware/adware and ends up costing you hundreds to repair your computer. Not to mention voilates trade marks of other dating sites etc.
Something like this can destroy a brand in only a couple of days. This is occuring in other industries and I think it will happen in online dating.
This is similar to P2P file sharing arguments, sue the end user or the enabler.
Claria = Napster. Napster argues that plenty of people use P2P networks for good rather than evil - “we can’t control the user”. Grokster just said the same thing to the Supreme Court a few weeks ago. Whereas spyware vendors have 100% control over what they let out onto their network.
Spitzer would be smart to go after Claria et al first. Make the spyware companies adhere to strict set of rules and pass those rules through to advertisers.
I totally disagree that a press release could hurt American Singles. What it will do is affect how the financial industry views Spark Networks business practices. What’s worse, that Wall Street doesn’t like how you do business or customers don’t?
Many of you have written to express concern about the suit by New York Attorney General Elliott Spitzer against MySpace’s parent company, Intermix Media, Inc. for distributing “spyware”. We want to reassure you that Friendster does not sell or release its membership data, does not install spyware, and would never compromise your safety on the Web.
When looking at various lawsuites on the internet it looks like spyware companies make $10,000/day per million installs.
I definately wouldn’t want to be a shareholder of myspace/intermix media right now. From their advertising promo it seems they have about 10 million+ installs. They are going to be losing a hell of a lot of money if spitzer wins.
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