Pittsburgh, PA – June 27, 2005 – Direct Response Technologies, Inc., (DRT) a leading provider of online media and technology solutions, announces settlement of its lawsuit with PrimaryAds, a client utilizing DirectTrack (Direct Response’s proprietary affiliate and ad serving technology) as the back bone for their network. PrimaryAds is a wholly owned subsidiary of Think Partnership, Inc. (AMEX â€“ THK) a direct competitor of Direct Response Technologies, Inc.
The material terms of the settlement decree, entered by the Court with the parties’ consent, are as follows:
- DRT will provide PrimaryAds with a copy of the PrimaryAds’ business information and data on the DirectTrack network (which was never a contention by DRT), however the copy will not include any of DRT’s confidential and proprietary information;
- DRT will provide the Services for nine (9) months after providing PrimaryAds with a copy of its information and data, at which time DRT will terminate the Services;
- PrimaryAds must pay the “monthly customer” rates set forth on the current rate card for network clients published (despite PrimaryAds’ contention that it was not a monthly customer);
- PrimaryAds is prohibited from disclosing DRT’s ideas, trade secrets, procedures, methods, systems, concepts, or other confidential information to any party â€“ including (but not limited to) any parent, subsidiary, affiliate, or representative of PrimaryAds; and
- PrimaryAds releases DRT from any liability relating to the lawsuit, including its claims for money damages.
“We are glad to have the litigation behind us,” said Jason Wolfe, the President and CEO of DRT. “We do not think the legal system is a place where public companies should use their financial might to bully smaller firms.”
Wolfe continues, â€œour primary concern was the level of access THK had
to the intellectual capital, embodied within our DirectTrackÂ® system, and that this access would help their Kowabunga / MYAP subsidiary at our expense. Furthermore, we were concerned that PrimaryAds would acquire a legal position to provide a competitive solution to DirectTrackÂ®. The Consent Decree and other binding legalese we have in place with PrimaryAds now provides us adequate protections to alleviate these concerns. PrimaryAds will be transitioned off of DirectTrackÂ®, as we desired, and the extended time period set for this transition is yet another testament to the unique power that the DirectTrackÂ® system providesâ€.
Mr. Wolfe stated that the settlement achieved DRT’s primary goals of protecting its proprietary information, transitioning PrimaryAds off of the DirectTrack network, and minimizing the costs of resolving the matter. “We were obligated and agreeable â€“ even before the lawsuit was filed â€“ to return PrimaryAds’ business information to it so that it could transition to another service provider. However, we refused to provide that information in a format which would have disclosed our proprietary data, infrastructure, design, and intelligence. We also had to defend PrimaryAds’ contention that we had no right to discontinue the Services under our contract, which we believed was clearly a month-to-month agreement”
Apart from the recent legal posturing, PrimaryAds has been a good client and we are sorry that they will no longer be a part of the DRT community of networks. Wolfe also emphasized that the settlement “will ensure that PrimaryAds is transitioned off of the DirectTrack network, despite its contention that DRT had no right to discontinue providing the DirectTrack services.” While its is sorry that DRT will not longer serve PrimaryAds in the future, Wolfe noted that “we wish PrimaryAds continued success. At the same time, however, we believe that the extended time period that PrimaryAds was granted in order to transition to Kowabunga â€“ 9 whole months â€“ is another testament to the unique power that the DirectTrack system provides.”
In the litigation, DRT was represented by attorneys David A. Gurwin and Gregory J. Krock of the firm Buchanan Ingersoll PC.
DirectTrackÂ® currently powers 105 networks including affiliate networks, ad serving networks, and co-registration networks. The DirectTrackÂ® â€˜network of networksâ€™ delivers roughly 11 billion ads per month, and over 65,000,000 clicks through its patent pending CrossPublicationâ„¢ technology. DirectTrackÂ® was launched as a low cost network platform for advertising and affiliate networks to get setup and launched quickly, and has proven that a company can grow rapidly utilizing the power of DirectTrackÂ® and the network of networks.
About Direct Response Technologies, Inc.
Direct Response Technologies, Inc. founded in 1994, is a media and technology firm dedicated to delivering performance-based results and technology solutions to clients. Direct Response Technologies is a privately held company with offices in Pittsburgh, PA, and New York NY, owned in part by Jupiter Media (NASDAQ: JUPM). The company also operates an office in North Dakota in conjunction with the Department of Commerce of North Dakota.
Direct Response Technologies (http://www.directresponse.com) provides technology for (1) secure coupon delivery and tracking solutions through www.mycoupons.com ; (2) keyword tracking through www.keywordmax.com; (3) affiliate tracking through www.directtrack.com; and (4) gift certificates and gift card solutions through www.giftcards.com;
Direct Response Technologies, Inc.