DoubleClick Inc, which claims to be the world’s biggest internet advertising company, has filed a lawsuit against small, unlisted Australian start-up Sabela Media.
DoubleClick’s affidavit claims that Sabela has violated a patent lodged in the US in 1996, but only approved three months ago, which gives the American firm exclusive rights to the internet technology known as adserving. This enables users to deliver, manage, measure and track online advertisements and provides feedback to companies on how effective their online advertising campaigns have been. Adserving does not form a major part of DoubeClick’s business and the bulk of its income is derived from selling online advertising to media buyers.
Sabela’s executive chairman Gour Lentell says DoubleClick has wasted little time in targeting rival adserving companies since receiving approval from the US Patent office. DoubleClick has been very specific against whom they are taking
legal action, said Lentell. They are going for reasonably small companies at critical stages in terms of funding. In a nutshell, we’re the new kids on the block and have been expanding in Australia and the US and now DoubleClick has chosen to take action against us. One has to question if their objectives are purely commercial or otherwise.
Sabela, which was launched in June 1998, set up a US office earlier this year. It is 20% owned by a private Japanese company, which invested $2m, and is engaged in a second round of fund raising in the form of a $12m injection from US venture capitalists. Lentell said the lawuit could halt the investment, which Sabela was planning to use for expansion into Asia and Europe.
According to Lentell, DoubleClick has also instigated legal proceedings against US adserving company Latitude 90, which is in the process of a Nasdaq listing.
