****Update - Shopping.com, Yahoo Trying To Settle Dispute 12/28/98
Newsbytes, Monday, December 28, 1998 at 16:21
NEW YORK, NEW YORK, U.S.A., 1998 DEC 24 (NB) -- By Robert MacMillan,
Newsbytes. Yahoo Inc. [NASDAQ:YHOO] and Shopping.com [NASDAQ:IBUY] are stuck in a battle over the terms of a licensing agreement that Yahoo claims Shopping.com broke, but Shopping.com President and Chief Executive Officer Frank Denny today told Newsbytes that no lawsuit has been declared in the ongoing dispute.
A representative for Shopping.com said the two companies are locked in a "business dispute," but Denny said "nobody's going to court... it's a typical business transaction."
He also said that the two companies are "going back and forth" to resolve the dispute.
Denny contradicted earlier reports claiming that Yahoo sued Shopping.com for contract violations and that Yahoo was seeking $2 million in damages. Yahoo has said, however, that Shopping.com did violate the contract terms of a linking agreement that the two companies penned earlier this year.
Yahoo officials were unavailable for comment.
Shopping.com said Yahoo made the accusation of breach of contract against it in a letter on Dec. 4, but Shopping.com claims that it has seen no legal action filed against it yet, and still believes that the dispute can be resolved out of court.
Under the original terms of the agreement, Shopping.com said it would pay Yahoo $200,000 in an advertising and sponsorship deal that would offer a link to Shopping.com's site from Yahoo. However, Shopping.com decided that the deal was no good and decided to cancel the agreement.
Denny said Yahoo then sent a letter acknowledging that Yahoo had provided approximately $170,000 in services, and owed Shopping.com more than $30,000 for services not rendered.
Yahoo, according to Denny, then continued to uphold the agreement, and then billed Shopping.com $230,000.
"We basically told them that 'we gave you a stop date, and we have a letter from you with a credit,'" Denny said. "We understand that you continued to run (the ad), but you ran it after we asked you to stop."
Dow Jones also reported that Shopping.com discovered that the link that Yahoo had set up to the Shopping.com Web site actually was sending users to Amazon.com Inc.'s [NASDAQ:AMZN] Web site.
Denny declined to comment on this charge, which he said is separate from the arguments with Yahoo about the sponsorship contract.
Reported by Newsbytes News Network, newsbytes.com .
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The earlier story is at:
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