Media Breakaway, LLC, today announced that an Arbitrator has released a final ruling in the proceedings between MySpace, Inc. and Media Breakaway, which originated in January, 2007. The final award in favor of MySpace was 95% less than the amount demanded by MySpace, as the Arbitrator determined that “MySpace’s demands are so disproportionate to proven actual damages, or Media Breakaway profits.”
The Arbitrator ruled that while Media Breakaway should be held responsible for a number of unsolicited commercial bulletins sent to MySpace users in violation of MySpace’s Terms of Use, the Company could not be held responsible for the actions of certain affiliates who violated Media Breakaway’s own affiliate 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.
Among the findings of the Arbitrator was the fact that the Company has “changed its policies and procedures over time, in dealing with affiliates …and other internet marketing issues”. The Arbitrator also singled out the contributions of several key Media Breakaway team members in the development and improvement of the Company’s compliance practices.
“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.”
“We are pleased to put this matter behind us, as we look toward the future to work with online companies to help define and implement advertising best practices for our industry,” said Richter. “We firmly believe that positive changes in the online marketing industry come about through cross-industry cooperation and not through costly litigation.”
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Media Breakaway, LLC -- an industry leader in advertising and direct-marketing, delivers full-service, results-oriented solutions. CPA Empire®, a division of Media Breakaway, LLC, is one of the fastest-growing Affiliate Networks in the industry, providing its advertisers and affiliates with unparalleled service and support to help them drive sales and revenue. DataOverdrive, a division of Media Breakaway, LLC, offers List Management Solutions helping clients convert their current lists into a supplemental profit center. Visit www.MediaBreakaway.com, www.CPAEmpire.com or www.DataOverdrive.com.
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