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Old 01-23-2007, 04:23 AM   #1
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Wfexclusive Myspace Sues 20+ Ad Networks For Over $500 Million

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.

It really sucks that this is happening, but at the same time, I don't blame Myspace for their actions, nor do I blame them for doing this and using the networks as an example of their anti-spam rules. This should act as a warning to the entire industry, that spam, no matter email or social networking, is probably not the best route to pursue.
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Old 01-23-2007, 04:44 AM   #2
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This sounds like its going to be fun
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Old 01-23-2007, 05:02 AM   #3
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If this does in fact happen, and the confirmed networks are found guilty, we'll be seeing a lot of people filing for bankruptcy. Shakeups like this are good for the industry in the long run. Kills off the bad ones and only keeps the good. I do feel bad for the networks on the list I have, because I'm pretty good friends with all of their owners and a lot of their AM's, and would hate to see them close shop and disappear.

As more information comes my way, I'll post it.
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The very existence of flame-throwers proves that some time, somewhere, someone said to themselves, You know, I want to set those people over there on fire, but I'm just not close enough to get the job done.
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Old 01-23-2007, 05:26 AM   #4
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I have never read the legal definitions for what constitutes spam and their associated penalties but from what I've read recently spam e-mail has increased. Given that these aff networks have so many clients working through more legitimate venues I have a feeling MySpace may have a hard time trying to get $20 million+ for spam unless the companies were stupid enough to have documented policies against punishing/encouraging spammers. If they didnt at least take measures to give the social spammers a slap on the wrist and new affiliate ID then maybe they deserve the penalty.

I imagine a settlement + agreement to improve cooperation in the future will be the likely result. Smart policy might be to close an account that is complained about for spam, set dead aff Ids to act as a corporate affiliate for any deals resulting from the defunct IDs, and leave re-registration available so that the best will return. Spam affiliates would be forced to improve their tactics, stop altogether, or generate a large $ bonus for the aff network (who takes over their dead IDs) in the process. By shutting down the account, I mean to also pay the affs their balance and not hoarde it all or the system ends without the repeated gains.
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Old 01-23-2007, 05:51 AM   #5
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It's 3am here in Vegas now, just got off the phone with 2 more network CEO's that have confirmed that they are indeed being sued, and both are in the $20M-$30M area. Insane.
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The very existence of flame-throwers proves that some time, somewhere, someone said to themselves, You know, I want to set those people over there on fire, but I'm just not close enough to get the job done.
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Old 01-23-2007, 05:57 AM   #6
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which 2?
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Old 01-23-2007, 05:57 AM   #7
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which 2?
Not releasing any names yet. Sorry.
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Seriously, how some of you don't fall for your own landing pages is beyond me!
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The very existence of flame-throwers proves that some time, somewhere, someone said to themselves, You know, I want to set those people over there on fire, but I'm just not close enough to get the job done.
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Old 01-23-2007, 06:02 AM   #8
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Fuck me... interesting
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Old 01-23-2007, 08:26 AM   #9
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Interestingly, I had just read http://tech.blorge.com/Structure:%20...hishy-spammer/ a little while ago. No mention of Ad networks so you probably have a scoop here.


Just an addition - that guy is a CPA Empire principle - MediaPost Publications - MySpace Sues 'Spam King' - 01/23/2007
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Old 01-23-2007, 08:49 AM   #10
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Wow I can't even name 20 ad networks. Thats so many.

But there will be an out of court settlement for these cases...the numbers are so high.

The networks can only do so much to police thier users.

They will have to take a stand against myspace and terminate any afiliate on the spot caught using myspace to promote an offer.
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Old 01-23-2007, 08:49 AM   #11
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WTG Myspace!
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Old 01-23-2007, 10:02 AM   #12
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so i guess this concerns everyone even those ignoring the myspace market if our network goes bankrupt. way to go rupert - this is part of a vast right wing conspiracy to draw attention away from the war in iraq.
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Old 01-23-2007, 11:05 AM   #13
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Wow - this is a huge bombshell!

I agree it's ultimately good in the long run. It's going to sting for quite a while, but ultimately good offers will find better and cleaner networks, and good affiliate managers will be able to find jobs because of it.
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Old 01-23-2007, 11:23 AM   #14
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It really sucks that this is happening,
I don't think it sucks at all. I think spamming is lame, spamming MySpace has always been equally as lame. I suspect the idea that bulletins on MySpace are not e-mail are not going to be a very successful defense to any of this.

I have no sympathy or empathy for anyone who was making money Spamming MySapce. Anyone who thought a billion dollar company owned by even a bigger billion dollar company was going to allow some spammers to essentially destroy their business was a major league fool.

While I hope the networks that have actively taken a stand against myspace spamming, I know some of them openly promoted it all the while, and I hope their entire network evaporates.
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Old 01-23-2007, 11:30 AM   #15
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Spam wasn't destoying myspace. There is no evidence of that especially considering how Myspace traffic shows no signs of slowing.

Like email or aim spam, most spam is ignored. Some gets through but any metwork that has millions of users will be spammed.
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Old 01-23-2007, 11:31 AM   #16
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Spam wasn't destoying myspace. There is no evidence of that especially considering how Myspace traffic shows no signs of slowing.

Like email or aim spam, most spam is ignored. Some gets through but any metwork that has millions of users will be spammed.
That is an idiotic position. E-mail spam sucks. I know I get thousands of e-mail spam a day. Saying it is just ignored is dumb.

It certainly is having an impact on MySpace, evidenced by this action none-the-less. Don't be one of the fools.
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Old 01-23-2007, 11:35 AM   #17
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i dont like aeiouy very much
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Old 01-23-2007, 11:36 AM   #18
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I hate email spam, too but I still use email because I have filters that elliminate 95% of it. I hardly get any in my inbox. If you ignore myspace bulletins you will avoid 95% of myspace spam. The majority of myspace usuers also ignore bulletins becasue they are crap. So the problem almost fixes itself.

But despite the fact that email spam exists you can;t just go after every company that is utilyzing email spam- that is too costly and difficult even with CANSPAM laws.

Myspace need to simply make it harder for spammers to well..um..spam by restricting more of the code. Disabling live links in bulletins & messages would be a big help for example.
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Old 01-23-2007, 11:48 AM   #19
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i dont like aeiouy very much
Must be a myspace spammer.
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Old 01-23-2007, 12:01 PM   #20
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Must be a myspace spammer.
no i'm not, just dont like your attitude.
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Old 01-23-2007, 12:05 PM   #21
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That is an idiotic position. E-mail spam sucks. I know I get thousands of e-mail spam a day. Saying it is just ignored is dumb.
Could be either dumb or disingenuous... but definitely an idiotic position either way.
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Old 01-23-2007, 12:32 PM   #22
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That is an idiotic position. E-mail spam sucks. I know I get thousands of e-mail spam a day. Saying it is just ignored is dumb.

It certainly is having an impact on MySpace, evidenced by this action none-the-less. Don't be one of the fools.
If you get thousands of email spam a day then you're a fucking idiot.
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Old 01-23-2007, 12:39 PM   #23
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Cant wait to see the list of networks
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Old 01-23-2007, 01:15 PM   #24
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Cant wait to see the list of networks
I'm going to wait a few days until they are all notified of it. You have to remember, being at ASW and all, means that their offices are nearly empty and their entire teams are here networking.
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Seriously, how some of you don't fall for your own landing pages is beyond me!
Quote:
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The very existence of flame-throwers proves that some time, somewhere, someone said to themselves, You know, I want to set those people over there on fire, but I'm just not close enough to get the job done.
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Old 01-23-2007, 01:17 PM   #25
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If you get thousands of email spam a day then you're a fucking idiot.
Don't speak to that which you nothing about... I have hundreds of e-mail accounts, some of them older then you apparently.
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Old 01-23-2007, 01:36 PM   #26
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jon is saying this may kill networks and no one is worried about getting paid?
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Old 01-23-2007, 01:49 PM   #27
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World Wide Web - MySpace Takes On the 'Spam King'

cpaempire's scott richter.
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Old 01-23-2007, 01:51 PM   #28
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What is the difference between the ad networks and the companies being advertised by the spam? It is only one level of accountability away and if MySpace sent cease and desist letters to those companies, I wonder if they'd sue those companies too. That would be more scary for the future of affiliate advertising of those companies had to take responsibility for affiliates marketing their campaigns.

On the good side for aff networks, they could possibly make the argument that MySpace has the ability to stop spam on their networks with little technical difficulty by evaluating and deactivating links resembling affs in bulletins. Could accepting and remaining someone's friend in myspace be opt-in? This makes me wonder if theres a way to eliminate aff ids and completely conceal the affiliate relationship.
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Old 01-23-2007, 01:59 PM   #29
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does anyone have an official filing

If a network is named in the suit you'd think they (myspace, the courts) would have told the networks directly...

Does anyone know how to obtain an ACTUAL copy of the court filings?

Or is this all he said she said, oh i trust that guys word?
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Old 01-23-2007, 02:00 PM   #30
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jon is saying this may kill networks and no one is worried about getting paid?
I am , but I guess we can only wait and see..


But what I dont get is why they say the owner of CPA as hes the spammer.. noone else but him and people he had work for him.

Oh thats because they want the general public to be mad as well,
so it gives them a easier case..

fun times
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Old 01-23-2007, 02:22 PM   #31
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jon is saying this may kill networks and no one is worried about getting paid?
They won't close shop overnight..
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Seriously, how some of you don't fall for your own landing pages is beyond me!
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The very existence of flame-throwers proves that some time, somewhere, someone said to themselves, You know, I want to set those people over there on fire, but I'm just not close enough to get the job done.
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Old 01-23-2007, 02:39 PM   #32
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Don't speak to that which you nothing about... I have hundreds of e-mail accounts, some of them older then you apparently.
What the hell reason could you possibly have for having hundreds of email addresses that doesn't involve spamming others?
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Old 01-23-2007, 03:01 PM   #33
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Networks won't be overly frightened at this point and neither should affiliates until all the information about the lawsuits and the ones being sued is public. Most likely a lot of the bigger networks (assuming they are being sued) will settle quickly which is what MySpace is probably looking for. Great PR at the end of the day making MySpace look good is what I believe Murdoch and his team want. Scott Richter was not chosen by mistake as the initial one to be sued. It makes MySpace look serious as combatants of spam and like I said, makes great PR.
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Old 01-23-2007, 04:00 PM   #34
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this scott richter video is great. lol....

Comedy Central Scott Richter Interview - Google Video
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Old 01-23-2007, 04:04 PM   #35
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What are some of the people out at ASW saying? I would imagine this would bring a sobering affect to a lot of people out there. I know Fox is out there, are they saying anything?
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Old 01-23-2007, 04:07 PM   #36
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Remember this also comes not even a week after MySpace got sued by the parent's of children who were sexually abused from people they met off myspace.
Families of abused daughters sue MySpace - The Boston Globe

I am sure they are probably doing everything they can to clean up there image.

You have to wonder how many networks got sued that also legitimately bought media from myspace?
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Old 01-23-2007, 05:58 PM   #37
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Been looking thru the District Courts for all of california, found arnold's suit but can't find anything on Scott Richter or Myspace..

Checked the following courts - no dice.
CACD Home Page
http://www.caed.uscourts.gov/
http://www.cand.uscourts.gov/
Southern District of California
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Old 01-23-2007, 06:31 PM   #38
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Originally Posted by bobby View Post
Been looking thru the District Courts for all of california, found arnold's suit but can't find anything on Scott Richter or Myspace..

Checked the following courts - no dice.
CACD Home Page
http://www.caed.uscourts.gov/
http://www.cand.uscourts.gov/
Southern District of California
Considering the law suit is being reported on several major news networks, why are you questioning the validity of the claim?

MySpace sues alleged big-time spammer - Jan. 22, 2007
MySpace.com Sues Alleged Spammer - News by InformationWeek
MySpace sues Spam King | The Register

Shoemoney is also saying that Scott Richter was talking to people at ASW about Myspace suing him.

$ Myspace Suing 50 Affiliates Seeking Minimum 20 million In Damages™

I don't understand the point of your post.
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Old 01-23-2007, 06:49 PM   #39
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/me ducks
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Old 01-23-2007, 07:02 PM   #40
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The court filing generally has more information then news feeds......

Was looking for the filing to see about the affilate networks being affected.


Anything shoemoney says, i'd take w/ a bag of salt.

Last edited by bobby; 01-23-2007 at 07:04 PM.. Reason: spelling
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Old 01-23-2007, 07:14 PM   #41
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And shoe got his info from Scott who of course would love to deflect as much attention from himself as possible.

No one is denying that that suit has been filed. What we want to know is specifically WHICH companies are named, WHAT mySpace is after, and WHO is named as an individual affiliate or network exec.

So thanks for looking Bobby. Dunno how the news wires get their info so fast... Looks to me like they are all just regurgetating each others BS anyway.
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Old 01-23-2007, 09:20 PM   #42
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Lawyers have easy access to court filings. Anyone have any lawyer friends that care to pull the docs?
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Old 01-23-2007, 09:22 PM   #43
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Wfexclusive

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)

Removed the list. Too many what if's. Wouldn't be fair to the networks that I originally mentioned without seeing their lawsuit files. Will post the list again when everything is confirmed, in writing.

If I do find out that any of the networks mentioned on the list should not be there, I will remove them immediately. I'm reporting this as a neutral source, even though I am good friends with many of the owners of the networks mentioned. I do hope many of them will be removed too.

As other networks are confirmed and more news becomes available I'll be reporting about it here.
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Forget that attorney shit. Just do whatever the next few posters suggest, you can't lose.
Quote:
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Seriously, how some of you don't fall for your own landing pages is beyond me!
Quote:
Originally Posted by George Carlin
The very existence of flame-throwers proves that some time, somewhere, someone said to themselves, You know, I want to set those people over there on fire, but I'm just not close enough to get the job done.
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Old 01-23-2007, 09:31 PM   #44
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That is some crazy shit. The thing I don't understand is, how can they prove that much money in damages.
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Old 01-23-2007, 09:49 PM   #45
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Sogay outcome

The outcome will be very interesting.

Why can't Myspace develop the appropriate technology to combat this whole problem instead of suing everybody??
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Old 01-23-2007, 10:03 PM   #46
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The outcome will be very interesting.

Why can't Myspace develop the appropriate technology to combat this whole problem instead of suing everybody??
Perhaps their goal is to use whatever funds they get from these suits to build up a better anti-spam system, which is no excuse either. I can't agree with you more. I think that after Myspace was acquired by News Corp, they should have completely revamped myspace, and used something better like php instead of cold fusion. But I'm not in charge and this is the way they want to run things, so in a big part of it, yes, they are also at fault.
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Forget that attorney shit. Just do whatever the next few posters suggest, you can't lose.
Quote:
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Seriously, how some of you don't fall for your own landing pages is beyond me!
Quote:
Originally Posted by George Carlin
The very existence of flame-throwers proves that some time, somewhere, someone said to themselves, You know, I want to set those people over there on fire, but I'm just not close enough to get the job done.
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Old 01-23-2007, 10:08 PM   #47
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Originally Posted by ChickenHole
Otherwise it looks like he said, she said. It just doesn't make sense. Why would a Wookie live on Endor? it just doesn't make sense.
hahahaha, that made me laugh
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Old 01-23-2007, 10:32 PM   #48
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the only official documentation

MySpace Brings Suit to Stop Spam

That is the only official thing I have seen. an official release from mySpace - naming no one but Scott.
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Old 01-24-2007, 03:31 PM   #49
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Interesting

I think the source he is referring to is Scott Richter himself. If Scott Richter received "the papers", its possible that the paper listed all the other defender being sued.
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Old 01-24-2007, 05:32 PM   #50
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Just got out of meeting with our lawyers....Blogged a little about what we see as possible trickle down effects. Heavily edited, lawyers suck...

I suspect this will be a 10.0 earthquake in affiliate land that has aftershocks for anyone and everyone in e-commerce.
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