Home > News > Google Sues Company for Click Fraud • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Google Sues Company for Click Fraud

Google Sues Company for Click Fraud
Get XBIZ News
Nov 18, 2004 2:37 PM PST    Text size: 
MOUNTAIN VIEW, Calif. — Internet search giant Google Inc. filed a lawsuit against one of its AdSense Online clients this week, claiming the company defrauded the search company by clicking on its own ads multiple times.

The case, filed in Santa Clara County Court, also alleges that Houston, Texas-based Auctions Expert International were in breach of their contract with Google for intentionally manipulating the advertising program.

AdSense allows for “unobtrusive and context-sensitive advertising,” according to Google, by linking a web user’s queries with similar advertising.

“The advertiser pays Google for the user’s click and Google, in turn, pays the majority of the money it receives back to the website author,” Google said in its legal filing.

The AdSense agreements, though, expressly bar any company from clicking on its own sites in order to create ad revenue or to pay other people to click on the company’s sites.

“[Auctions Expert] flagrantly abused the AdSense Online service by artificially and/or fraudulently generating ad clicks,” the complaint stated. “These clicks were worthless to advertisers because they generated significant and unjust revenue for the defendants, who were paid by Google as if the clicks were legitimate.”

Pay-per-click fraud has been a hot topic recently for Google over the past year.

In March, 32-year-old Michael Bradley was arrested by the FBI after he developed a piece of software called “Google Clique” that roamed the Internet, clicking on AdSense advertisements.

Bradley first tried to sell his software to the search company for $100,000, and then, when Google failed to respond, threatened to release the program to the “top 100 spammers.”

Google also mentioned the subject in its April IPO filing with the SEC as a potential threat to its stock viability.

“We have regularly paid refunds related to fraudulent clicks and expect to do so in the future,” said Google. “If we are unable to stop this fraudulent activity, these refunds may increase.”

Calls to Google attorney David H. Kramer, with Wilson Sonsini Goodrich & Rosati in Palo Alto, were not returned as of this posting.

The case is Google Inc. Vs. Auction Expert International L.L.C., et al., CV030560.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

LEGAL PERSPECTIVES

The Skinny on the New DMCA Requirement

The requirements under the Digital Millennium Copyright Act (DMCA) have changed, but the sky is not falling. We have, even as a law firm, been hit with an unbelievable amount of spam sent out by law firms... More »

2017 Outlook: Legal Matters Around the Corner

The adult entertainment business’ legal community recently weighed in the top issues that companies and the industry, as a whole, should be concerned about. XBIZ asked industry attorneys to discuss... More »

Fraudulent Brazilian Trademark Registrations Running Rampant

Although you might not think often about protecting your trademark rights in Brazil, you need to — even if you don’t yet have a single Brazilian customer. Scammers are constantly looking for... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.

UPCOMING EVENTS

EXXXOTICA Denver

Mar 31 - Apr 02
Denver, CO.

Eurowebtainment 2017

May 17 - May 20
Majorca, Spain

XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!