Feeds

Groupon: Scoopon’s catch of the day

Quarter of a million settles squatting, trademark lawsuit

Internet Security Threat Report 2014

Australia’s Scoopon founders and group buying millionaires, Gabby and Hezi Leibovich, have settled a prolonged legal battle with group buying giant Groupon.

Groupon took the duo to court last year, filing cases in the US, New Zealand and Australia, after discovering that not only did the Leibovich’s launch a Groupon clone with Scoopon in Australia but also purchased the Groupon.com.au domain name, registered the company name Groupon Pty Ltd, and attempted to register the Groupon trademark in Australia.

According to Groupon, the Leibovich’s tried to register the Groupon trademark just seven days before Groupon did in Australia.

In early January, Groupon CEO Andrew Mason wrote about the saga on the company blog. “This is a classic case of domain squatting – an unfortunate reality of the Internet business. As Groupon became internationally known, opportunistic domain squatters around the world started to buy local Groupon domain names, thinking that we’d eventually be forced to buy them at an insane price.”

Mason claimed the Leibovichs first accepted, and then reneged on, an offer for $US286,000 for the domain and trademark. Mason and Groupon believed that the Leibovich’s were holding them to ransom in the hope that Groupon would buy the entire Scoopon business.

While proceedings dragged on, the brothers sold a 40 per cent stake in the company, which includes Catch of the Day and Scoopon, for A$80 million to a consortium including Packer's Consolidated Press Holdings, Seek co-founder Andrew Bassat, and New York based hedge fund Tiger Global, in May. The investment valued the company at AU$200m.

Meanwhile the trademarking issue did not stop Groupon from entering the Australian market in February under the brand Stardeals.

Last week the Federal Court in Victoria dismissed the intellectual property action following an out of court settlement between the parties. Details of the settlement have not been disclosed but speculation suggest that the Leibovich’s succeeded in getting considerably more than the $250k on offer.

The groupon.com.au domain was transferred on July 14.

The Leibovichs said in a statement: "Scoopon is pleased today to announce that it has settled its legal dispute with Groupon in Australia, the US and in New Zealand. The parties have agreed to the Court making orders that, each of the parties claims against each other have been dismissed with no order as to costs.”

They added that as they now enjoy a leading position in the marketplace and have the backing of the Tiger and Packer consortium of investors, that “Scoopon is exceptionally well positioned to meet Groupon in the market.” ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.