MySpace to sue 20+ ad networks

[Cyclops]

Stumbled across this in my travels today.

Copy of article below :
Well, while I sit here typing this, I'm pretty shocked by the news. Here at ASW in Vegas, spirits were high for the last 2 days, but have since been shattered by Myspace's announcement to sue at least 20-25 ad networks that many of you know all too well. Some really big ones, others are small to medium sized. Basically, they aren't just going after the big guys in this one, they are obviously doing this to make a point the first time around.

This news is coming from 3 different trusted sources, who gave me the thumbs up to leak the news (even before some of the companies on the list will find out they are on it) but would prefer to remain anonymous. Who can blame them either, eh?

I've got a bunch of confirmed sources on the story as well.

Here's what I know for sure:

Myspace's lawsuit against the networks are to ban them, and their owners from visiting the myspace.com site.

Myspace is seeking punitive damages from $20 million to $75 million PER network.

Myspace is using the strict California state anti-spam laws as basis for the punitive damages cash amount. These laws are meant for email, not bulletins, but for some reason, they are using this as the reason for the crazy damages suit.

I have a list of 6 confirmed networks and 14-17 unconfirmed networks, but will hold off on releasing the names of them until I am absolutely sure they are involved. I was debating on releasing the names, but seeing as this is one hell of a blow that will most likely kill off a network, I think it's safer to just wait a bit and see who is really on the list and who isn't.

The biggest network being hit is CPA Empire for a staggering $75 million.

I've been saying this for a while now, Myspace was actively monitoring the spam-friendly haven forum known as Screennameforum.com. The list of networks being sued reads like a shopping list, because they all, at some point or another drafted known Myspace spammers and phishers into their programs to promote their offers, even AFTER cease and desist letters were issued to them by Myspace.

And a follow up article....
The conference is now over, and I've spoken to most of the CEO's and owners from the companies named about it, and while the majority of them have not heard about it (heard it rather on the show's floor and from me) they all agree that they have at some point from the summer until now have had affiliates spamming on Myspace.

Scott Richter, who owns CPA Empire found out about the lawsuit from a press release by Myspace even before he got the court papers. Just goes to show you the power of the media and internet too. He has been telling people at ASW a few different stories about what's actually happening, so it's hard to give actual dollar figures of how much the networks on the list will be hit for.

As promised, here's the list of networks that were mentioned to me from three unrelated but trusted sources. All of the ones mentioned below have yet to receive any priority letters about it, but were all mentioned by my anonymous sources. The ones who weren't all confirmed by my sources will not be posted because I'm still not sure if it's real or not.

Here's what I have so far:

1- CPA Empire ($75M)
2- Hydra Media
3- The Useful
4- Rextopia
5- PrimaryAds
6- Market Leverage
7- Click Booth
8- PrimeQ
9- Incentaclick
10- Coreg Media
11- XY7
12- Rocket Profit
13- The Useful
14- AzoogleAds
25- Copeac/Intermark
36- Max Bounty

[Jazzylee77]

That explains the don't ask, don't tell, don't want to know, keep this under your hat email from a certain network...

[YabbaDoo]

Wow!
75 Million - I'm guessing that will make them bankrupt :O

[mcfox]

It was only a matter of time before the Media giant who own Myspace went after someone.

I wonder of they will also take a heavy line with domains using "myspace" in the url - e.g. myspacesupport.com ?

[Cyclops]

That explains the don't ask, don't tell, don't want to know, keep this under your hat email from a certain network...
I received quite a nice check from a network today, I will be banking it first thing in the morning lol.

I wonder of they will also take a heavy line with domains using "myspace" in the url - e.g. myspacesupport.com ?
I don't think so, there are just too many out there, I was searching for a myspace ...... domain a few days ago. There aren't many available, I would guess there are thousands of sites out there prefaced with Myspace.

Notice Myspace aka News Corp aren't going after the people/affiliates promoting products by sending out the bulletins, they are going after the networks who are providing the products to the affiliates.
Now we know that a lot of those networks (some are on that list including CPA Empire) have suspended the accounts of people they find promoting their products via Myspace bulletins.
So they are trying to cut it off at the source, this way they only have to deal with maybe 20/30 networks and not thousands of people who promote via the bulletins. This also raises an interesting question, will they also go after Google and Yahoo. A lot of bulletins are sent out promoting sites that have Adsense or YPN on them as well as the other networks.

I think it's going to be very hard for Myspace to win in court. The networks can't be held responsable for how the affiliates are marketing the products ... and if the network have suspended the accounts of people who have been marketing via Myspace then it shows the networks have been doing their duty.
I'm guessing it's a bluff and most if not all the cases will be settled out of court.

MySpace will look like they have won, the networks will crack down hard on any affiliate who goes near Myspace and most of the affiliates will be scared ****less anyway.
From what I have seen on a couple of other forums today affiliates are already ducking for cover lol.

[mcfox]

I personally don't see how they (Myspace) can win but what do know ...

[fryman]

Go Myspace!!!!!!!!!!!!!!!!

Good for them, get rid of all those stupid spammers.

[icesar]

MySpace has been getting way too spammy; they have to do something to clean up.

[Helios]

You couldn't have just added this to the other myspace is suing thread?
The info is from the same forums....

In other news, I think that this is a lot of he said, she said right now. The source of this info has already been shown to be unreliable in the past.
I've been talking about this with a few people with connections to myspace, and there IS NO DEFINITIVE LIST right now.
I'm not saying that this isn't a possibility...but lets just wait until some cold hard facts are presented.

Hell, I even checked with some lawyery people, and there are zero records of anything in Cali where this is apparently taking place.

[Ad disengaged]

Ouch thats a lot of money..but good riddance

[Cyclops]

Sorry Helios, I never saw the other thread :redface:

Exclusvie from Scott Richter of CPAEmpire.com

--------------------------------------------------------------------------------

First let me clear up some quick rumors....

We issued a small press release on our Media Breakaway.com website with our comments on Monday evening. Here is what we said.

Westminster, CO January 22, 2007 – Steven Richter, General Counsel for Media Breakaway, LLC and Scott Richter, denies allegations made in MySpace press release, and hopes their press release was not intended by MySpace to distract recent public and governmental attention regarding their alleged misconduct.

"Like everyone else in the industry we are only aware of what MySpace has alleged in their press release, as we have not been served", said Steven Richter, General Counsel to Media Breakaway, LLC and Scott Richter, its CEO. "Obviously we deny the allegations made in the press release". "Several months ago I spoke with counsel for MySpace about some complaints they received, and we cooperated with them fully and were assured that if there were any outstanding issues, they would get back to us." "I guess this is their way of getting back to us", Richter said.

Richter stated "I just hope that the purpose of their press release was not to distract the public and governmental attention that has been focused on MySpace recently regarding their alleged misconduct".

Now the facts from my viewpoint.

As of the current time we have not been served and the complaint is not online via the Federal pacer system.

There is no money amount being asked for, the 75 million is some one with a big imagination.

CPAEmpire is in good financial shape and will vigorously fight off any one who makes false and misleading allegations against us just as we did in the past in other suits. We are not going any where and there should be no concern of people being paid.

Others who were sued are affiliates we had terminated for complaints we received several months back. We do take action on complaints and take any one doing anything that is against our T and C's, very seriously.

Once again I thank all of you who have shown support for us this week by moving more traffic to our network and we will have a nice press release out Friday that should be very enlighting to MySpace.

All my Best

[Jeremy]

As webmasters of myspace resource sites I think it is important to remember when launching "new sites" that if MySpace wants your domain, they can and will take it.

Of course if you have a established profitable site with myspace in the title, you are going to let it ride as long as possible. But to start a new site with myspace in the title in my opinion is just well..........dumb.

From a branding standpoint and even an SEO standpoint, having myspace in your url is not as important as you may think. Also yes it would be virtually impossible to shut down all domains with myspace in the url, but if your one of the more popular sites, then you will be a higher target obviously.

I come from the poker industry and have had poker companies send cease and desist letters out because of their name in the url.