Arbitrator Ends Media Breakaway, MySpace Dispute
ADOTAS – MySpace’s demands in legal proceedings launched in January of 2007 against an advertising and direct-marketing firm were excessive — 95% excessive, to be exact.
Media Breakaway LLC has announced that an Arbitrator released a final ruling in the proceedings between MySpace and the company; the final award was in favor of MySpace, but it ended up being 95% less than the amount demanded by the social networking giant.
The exact award wasn’t released, but in the final ruling, the Arbitrator that “MySpace’s demands are … disproportionate to proven actual damages, or Media Breakaway profits.”
Media Breakaway will be held responsible for several unsolicited commercial bulletins sent to MySpace users, a clear violation of MySpace’s Terms of Use. But it was determined that the company could not be held responsible for the actions of its affiliates who violated Media Breakaway’s own terms and conditions.
“We respect the Arbitrator’s findings regarding violations of MySpace’s Terms of Use by certain rogue affiliates, particularly during 2006 when the concept of social networks was still developing. We acknowledged early on in this process that our Company should not profit from the sending of unsolicited commercial bulletins to MySpace users and offered to return any such profit to MySpace, and we repeatedly offered to work with MySpace to resolve mutual concerns,” said Steven Richter, president and general counsel for Media Breakaway, in a release.
In the final ruling, the Arbitrator also acknowledged Media Breakaway’s changed policies in dealing with affiliates and other online marketing issues.
“We appreciate the Arbitrator’s acknowledgement of the many steps we have taken as a company over recent years to improve our compliance practices and our methods of monitoring the activities of our affiliates,” said Richter. “Our goal is to continuously enhance our compliance programs and exceed what is required by law and industry best practices.”
Media Breakaway is an affiliate network that provides direct marketing services to interactive advertisers.
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