Update: 'Adware' vendor loses in court to PC Tools, Kaspersky

Stephen Withers
Thursday, 07 June 2007 10:38

Your IT - Home IT

When the developers of desktop security products extended their software to provide protection against spyware, adware and the like, they were mindful that the people behind such threats could try to use the law against them - hence their use of terms such as 'potentially unwanted programs'.

Eventually, it happened: Zango sought a temporary restraining order against PC Tools, claiming the latter's Spyware Doctor eliminated Zango software computers without warning and without giving the user an opportunity to prevent that happening.

Another security software developer, Sunbelt Software, found "no such evidence that Zango is deleted [by PC Tools' software] without specific warning]" as Zango's suit claimed.

Although the judge turned down the application, both companies are claiming victory.

"This result represents success for anti-spyware vendors and, most importantly, a win for the public's right to choose what software is allowed to be installed on their computers," said Simon Clausen, chief executive of PC Tools. "We see this ruling as sending a strong message to other adware companies who may be tempted to bully anti-spyware makers into re-rating or removing their products from their database of malicious programs."

Zango officials said "while the TRO paperwork was denied today, the essential relief Zango sought in its TRO motion was in effect granted – by PC Tools itself. Spyware Doctor is now being distributed in version 5.0.0.186 and – surprise! – that version neither eliminates nor blocks Zango software."

Clausen countered with "Zango's attempts to pursue and compel us into reclassifying through legal action, rather than following due process, is not going to get them anywhere - and is certainly not the way to rehabilitate their image." 

"We will continue to be vigilant in our classification of threats and will not be intimidated by these types of lawsuits In the end we owe a duty to our users who expect us to defend them against malware makers," he added.

PC Tools did reclassify three of Zango’s products as potentially unwanted applications rather than malware posing a 'high' or 'elevated' risk. While Zango's statement implies the reclassification was an outcome of its legal action, PC Tools spokesperson Lauren Young told iTWire, "PC Tools reclassified Zango’s products before the order."

Zango was previously known as 180solutions. Last year it settled a US Federal Trade Commission complaint by paying $US3 million, providing a way for users to remove its products, and making other changes to its former practices. At the time, the company said it had already met or exceeded the key notice and consent standards in the order.

In related news, Zango subsequently lost a similar suit seeking a restraining order against Kaspersky. "We are confident that the facts that will be uncovered during the discovery process will show that the irreparable harm to Zango has been caused by Kaspersky's wrongful and improper actions," said Zango officials.