ITEM 3 LITIGATION
Except for the
one action described below there is no litigation that must be disclosed in
this Disclosure Document.
Terminated
Litigation
On November 30, 2004,
Rescuecom Corporation, a competitor of ours, filed suit against us, claiming
that we had infringed on Rescuecom''s trademark by utilizing the word
"rescuecom" as a trigger to a Google search engine response that
provided an internet link to our website. Rescuecom Corp. v. Computer
Troubleshooters USA, Inc. - Civil Action No. 04 - CV-3499-JEC CU.S.
District Court for the Northern District of Georgia). We sponsored a
"Sponsored Link" that allowed internet users who found the term
"rescuecom" through a Google search to link quickly to our website.
Rescuecom did not specify a dollar amount of damages. Rescuecom originally
sought a Temporary Restraining Order seeking to order us to cease sponsoring a
"Sponsored Link" through a Google search, which the Court denied. By
Order entered on January 27, 2005, the Court denied Rescuecom''s motion for
Temporary Restraining Order. On December 20, 2004, we moved to dismiss the
Rescuecom''s Complaint for failure to state a claim upon which relief can be
granted, noting in that Motion that Rescuecom itself also sponsored its own
"Sponsored Link" on Google from our name to its website. That Motion
was denied by Order dated September 16, 2005, but with leave to refile it
later, and we Answered the Complaint on September 28, 2005. Also, on February
23, 2005, Rescuecom''s original local counsel moved to withdraw as counsel from
the Rescuecom Case, and that motion was granted, with a new local
counsel appearing for Rescuecom. We complied with our discovery obligations but
Rescuecom did not. Wc moved to dismiss and for sanctions. By Order entered
February 15, 2006, the Court did not dismiss the case, but awarded us granted
monetary sanctions against Rescuecom. On June 30, 2006, both parties agreed to
a settlement of the case without any monies being paid. The Settlement Agreement
provided for a dismissal with prejudice of Rescuecom''s suit without us paying
any amount to Rescuecom, and we gave up our award for discovery sanctions
against Rescuecom. We also agreed to continue our policy of not sponsoring a
link to our website from a Google search result for a search of the term
"Rescuecom."
