****Zap Futures Willing To Talk With Zapata About "Zap" Name
Newsbytes - August 19, 1998 18:17
%ONLINE %MSP ZAP V%NEWSBYTES P%NBYT
CHICAGO, ILLINOIS, U.S.A., 1998 AUG 19 (NB) -- By Bob Woods, Newsbytes. A top official with LFG LLC's Zap Futures division, which is suing Zapata Corp. [NYSE:ZAP] over the use of the word "Zap" in its new plans to make its mark on the Internet, told Newsbytes that Zap Futures is willing to talk to Zapata over the trademark. Zapata's Zap Corp., Internet division uses "Zap" in the branding of its new "Zap.com" Web portal site.
Bill Kaiser, Zap Futures' managing director, told Newsbytes late Wednesday afternoon that while a court date has been set in the matter, his company would also talk to Zapata about "some time of marketing arrangement."
But Kaiser reiterated his company's stand that it will not sell its "Zap" trademark to Zapata: "We've worked a long time and spent a lot of money on promoting the site," Kaiser said. Zap Futures' own Web site attracts more than 60,000 visitors per month, Zap Futures officials said in their court filing last Monday (Newsbytes, Aug. 18, 1998).
Kaiser said that a trial date of September 9 has been set in the Federal District Court for the Northern District of Illinois to hear Zap Futures' motion for preliminary injunction against Zapata. Zap Futures seeks to prohibit Zapata from using "Zap" in its Web portal site, as well as the collection of attorneys' fees in its suit, Kaiser said.
But Kaiser said his company hopes to speak with Zapata between now and September 9 about some type of arrangement in the dispute.
In its filing, Zap Futures claimed that the Zap.com Internet portal site would be "likely to cause confusion" among consumers trying to determine if Zap.com represents Zap Futures. Specifically, Zap's "Daily Stocks," "Stocksheet" and "Starting Point" Web sites directly conflict with Zap Futures' online offerings, company officials said. Zap Corp. has either acquired or is in the process of acquiring those three Web sites, Newsbytes notes. But all three sites are linked from Zap Corp.'s Zap.com portal site.
What's more, some of Zap.com's Web sites use market news and data from Data Broadcasting Corp., which Zap Futures also uses in its own services, Zap Futures said.
Zap Futures also offers electronic order entry software, which lets users conduct online commodity transactions with commodity exchanges around the world, under the Zap trademark; and Zap Total Trading Platform (Zap TTF), which provides real-time data on stocks and options as well as order execution, Zap Futures said in its filing.
Zapata officials were not immediately available for comment. But the company has acknowledged receiving Zap Futures' suit to other news organizations.
If Zap Futures is successful in its legal effort, Zapata will undoubtedly lose valuable momentum it has gained in its maiden voyage into the Internet market. The Zap.com brand and portal site has been an integral part of Zapata's plan to blitz the Internet world. Zap quoted online research service "@plan" as saying its most recent acquisitions would add its 2 million unique monthly users and more than 6 million total monthly visits to the Zap.com portal site. And after its recent buys -- which total more than 30 Web sites -- are completed, Zapata officials estimate that Zap.com would place among the largest Internet sites worldwide based on number of users.
Late last month, Zapata head Avram Glazer laid out future plans for the Zap.com portal site, which he called an "ultra gateway" site. "We like to think of (the Zap.com portal Web site) as the 'roach motel' of the Internet: We want users to go into the Zap network, but we don't want them ever to come out."
"Zap.com will not be another 'me too' site, and will not be designed to appeal to the lowest end computer user," Glazer said. The new Zap.com is slated to be released in the fall, Glazer said.
Zapata shocked the wired world when it announced it would begin buying Web sites to build an Internet portal site (Newsbytes, Apr. 27, 1998). The company then formed its Zap Corp., subsidiary, a unit slated to be split off as a separate independent company, as a public company or as a tracking stock. Whatever happens, the transaction should be completed in the final three months of 1998, officials said.
Zapata is primarily known as a holding company for investments in fish oil processor Omega Protein Corp. and food processor Envirodyne Industries Inc.
Zap.com's portal site is at zap.com .
Zap Futures' Web site is at zapfutures.com . LFG's Web site is at lfgllc.com .
Reported By Newsbytes News Network: newsbytes.com .
17:00 CST
(19980819/Press Contacts: LFG LLC, 312-441-6000; Jeffrey Goldberger, Stern & Co. for Zapata, 212-888-0044 /WIRES ONLINE, LEGAL, BUSINESS/ZAPATA/PHOTO)
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