Thursday, April 19, 2007

Good-faith in pay-per-click advertising...

... who'd have thunk it? Apparently the Southern District of New York.

Because this tactic would allow Findwhat to increase its profits solely at its discretion and with no benefit to Payday, it is
plausible that it could be found to “destroy[] or injur[e]” Payday’s rights under the contract. Dalton, 663 N.E.2d at 291. It is furthermore likely that a reasonable advertiser entering into such a contract would expect that, whatever the external risks of unproductive “clicks,” it would not be subjected to unbounded increases in its prices at the hands of its promisor or at its promisor’s direction.


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