Digital Envoy, a geo-targeting service, on or around March 30th, filed a suit against longtime client Google. The suit claimed that Google has misused Digital Envoy’s technology to deliver sponsored search results.
Google filed a counter suit claiming that the search engine, in fact, did not misuse Digital Envoy’s service. DE’s claim was that their service was intended for “limited use” and Google overstepped the agreement by targeting results.
Another contention is that Google is using the technology on other sites by provided search results for these sites in question. Digital Envoy stated the agreement was to use the technology on Google’s site, not others.
Google’s counter suit claims that it has not misused the technology allowed under the terms of the two companies’ agreement. Speaking to ZDNet.com, Google representative David Krane said the company believes that Digital Envoy’s allegations lack merit. “We have always and continue to act fully within our rights under our agreement with Digital Envoy.”
Google’s agreement calls for the search engine to pay Digital Envoy $8000 a month, which Google has agreed to increase by 50%. But the crux of the matter comes through when Digital Envoy expands on its complaint.
The company states that Google makes millions using its technology to target ads. Digital Envoy wants the courts to determine how much money Google makes off of their ad campaigns in order to correctly appropriate fees. Essentially, Digital Envoy wants a piece of Google’s AdWords/AdSense profits. The company believes it has a claim since Google uses its technology to target these results and ads.
Google’s counter suit also brings issue with Digital Envoy filing its suit in Georgia, the home of the company. Google believes that since this is a contract dispute, the suit should be filed in California, the state where Google is located.
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