2Clix drops legal action against Whirlpool

Stephen Withers
Thursday, 20 September 2007 03:17

Your IT - Home IT

Popular broadband site Whirlpool has been advised by the solicitor acting for software developer 2Clix that it have been instructed to discontinue the case alleging injurious falsehood.

The case, filed with the Supreme Court of Queensland in mid August, alleged that certain messages posted in Whirlpool's forums concerning 2Clix and its accounting software were "false and malicious" and that Whirlpool did not remove them when requested.

2Clix sought a permanent injunction against Whirlpool founder Simon Wright requiring the removal of the threads and $A150,000 per month damages, plus costs and interest.

The action triggered outrage among the Whirlpool community, and also led to fears that the free and frank exchange of opinions about commercial products could be stifled on Australian web forums.

As previously reported, Electronic Frontiers Australia issued a media release welcoming the backdown by 2Clix before the news had beeen confirmed.

"The outpouring of support from Whirlpool users and others demonstrates that members of the Australian Internet community will zealously defend their right to freedom of speech online, and their ability to express their honest opinions about goods and services," said EFA chairperson Dale Clapperton.

Many people, including Clapperton, have observed that the case itself has done more damage to 2Clix' image than the original critical messages.

When the suit was first reported, Clapperton said "This case has echoes of the notorious 'McLibel' action in the United Kingdom, and the lawsuit by David Jones against the Australia Institute over allegations of 'corporate pedophilia'. Corporations are increasingly using the courts to silence and intimidate people who criticise the corporation."

According to Whirlpool, 2Clix' legal firm Turnbull & Co said it will "attend to preparation of the Notice of Discontinuance" that would bring the matter to a formal close.