Media Breakaway and MySpace Ruling via Arbitrator

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Media Breakaway, LLC has announced that there has been a final ruling in proceedings between MySpace and Media Breakaway, which dates back to January 2007.

According to Media breakaway, the final award in favor of MySpace was 95% less than the amount demanded, as the Arbitrator determined “MySpace’s demands are so disproportionate to proven actual damages, or Media Breakaway profits.”

“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.

Big headache as a result of rogue affiliates. Any affiliate programs still automatically approving affiliates should take heed.

More at http://www.businesswire.com/news/google/20080613005586/en.