NetZero gets temporary restraining order against Juno

(Telephony) NetZero gained an opening victory in a battle that may go on for some time—and involve many more players—by recently winning a temporary restraining order (TRO) that prevents Juno Online Services from displaying third-party advertisements in its ad banner window.

The TRO stems from a lawsuit filed by NetZero on Dec. 26, 2000, that alleges Juno infringed on the company’s patent for ZeroPort, an on-screen window that serves as a navigational tool while displaying advertisements or other types of customized messages for the entire time a user is online.

NetZero was granted a patent for this technology on Dec. 6, 2000. The TRO is effective until mid-March, when a hearing is scheduled to determine whether it should be expanded or extended until the patent suit reaches trial.

“Everybody knocked off the ZeroPort because it was a great idea and they thought they could get away with it,” said Mark Goldston, NetZero chairman and CEO. “All the people who were out there doing toolbars and the like were doing this thinking we either didn’t have, didn’t apply for, or wouldn’t get a patent.”

Goldston’s legal team is trying to determine what other free and fee-based ISPs also may be infringing on NetZero’s patent rights. NetZero is, and will be, sending cease and desist letters to those organizations, he said. If they don’t comply quickly, Goldston suggested they will be hit with similar lawsuits.

For its part, Juno claims the suit and TRO mean relatively little to its business, as the company generates only 4% of its revenues from such third-party advertising. It is also questions the allegations NetZero has made in its lawsuit, hinting it may soon be take action of its own.

“We still intend to vigorously contest the allegations made by NetZero in this lawsuit,” said Juno President and CEO Charles Ardai in a statement. “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.”

Filed in June 2000, the earlier suit alleges that NetZero and Qualcomm infringed on a Juno patent that protects technology developed by Juno that enables advertisements and other content to be displayed to an Internet user while the user is offline. Juno claims Qualcomm’s Eudora e-mail software (version 4.3x), which it alleges has been distributed by NetZero, enables advertising to be displayed while the user reads or writes e-mail.

“Of course, they’re going to say they don’t think they’re infringing and are going to fight it. Anyone would say that,” countered Goldston. “But … to get a TRO means a judge looked at this case and thought it was very strong and had a very high likelihood of succeeding. That’s why we got it.”