MySpace Emerges as the Winner against ‘Spam King’

MySpace has eventually reached an agreement to get its claimed retributions after a very long legal battle that commenced in January 2007 with ‘Spam King’ Scott Richter.

Media Breakaway LLC, a Westminster, Colorado-based online marketing company, has been notified to pay $6 million in legal fees and damages, for supposedly spamming MySpace users with unsolicited advertisements in August 2006.

It was ruled that Scott Rider and his internet marketing company must pay $4.8 million in damages along with $1.2 million in legal fees to the social networking giant, for spamming its members. Moreover, Media Breakaway has been banned completely from the social-networking website by the court.

As per MySpace, the spamming activities were targeted on ‘consumerpromotionscenter.com’ and Media Breakaway was sending spam messages with an impression to users that they were invited to the advertising website by their friends.

Though Media Breakaway agreed with being held responsible for such an act, it however added that some rogue business affiliates sent out the spam messages for Media Breakaway, and hence will not assume responsibility for such affiliates who violated the company’s terms and conditions.

In September last year, Media Breakaway LLC ranked 189 on the Inc. 500 list with a four-year growth rate of above 1,100 percent, and was entitled one of the fastest growing private companies in the U.S.

The arbitrator determined that MySpace’s demands were very disproportionate to proven actual damages, or Media Breakaway profits. Hence, MySpace was favored with 95 percent less than the amount claimed by it originally. This means that $6 million fine represents just 5 percent of the total amount demanded by MySpace. Moreover, Media Breakaway will not be held liable for the actions of certain affiliates who breached the company’s own affiliate terms and conditions.

Recently, MySpace announced a tough stance against phishers and spammers on its site.