PATENT WARS STRIKE WEB AUDIENCE MEASUREMENT

By: Jonathan Angel Jupiter Media Metrix Files Suit Against Competitors


(Marketing Computers) Many tech companies have been bitten by the
vagueness of U.S. patents - issued not only for specific
technologies, but also for general ways of doing business. If
their competitors can't innovate, they'll litigate.

Now, their misery has company in the competitive field of
Internet audience measurement. Jupiter Media Metrix was awarded a
patent in September 2000 describing a process for tracking Web
users via software agents installed on their machines. Shortly
afterwards, Jupiter sued competitor PC Data.

On Wednesday, PC Data threw up its hands. It settled out of
court, deciding to leave the online audience measurement
business. Some of its assets have been sold to ComScore Networks
and to NetValue.

But Jupiter's lawyers have now turned their guns on two other
competitors: NetValue and Nielsen//NetRatings, both of which it
sued on Tuesday. (Full disclosure: Nielsen//NetRatings is a joint
venture partly owned by VNU, which is the parent company of
Marketing Computers and E&P.)

"The settlement is a demonstration that the patent looked solid,"
says Mary Ann Packo, group president of Jupiter's measurement
business. But the remaining rivals vehemently disagree and say
they will fight.

"Lawsuits are not uncommon, and are often filed by companies that
would rather litigate than compete," says Dave Toth, president
and CEO of NetRatings. "We will defend ourselves vigorously
against the assertions made in this lawsuit."

Jupiter Media Metrix seeks a permanent injunction precluding both
NetRatings and NetValue from using computer-use tracking methods
it believes infringe the patent. It's also asking for monetary
damages.

However NetRatings, and other companies that track Web surfers'
online behavior, say their technology is different from anything
the patent actually describes. James Powers, chief counsel for
ComScore, says that if the courts were to interpret Jupiter's
patent too broadly, it would chill industry innovation.

Financially, NetValue and NetRatings are in a better position to
defend against the suit than PC Data. PC Data executives say the
suit was just one factor in their decision to close up shop. A
shrinking client base and difficulties in raising funds also
contributed.



Marketing Computers (MC) is a sister publication to E&P.



Copyright 2001, Editor & Publisher.