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Juno Online Services, Inc. (Nasdaq: JWEB) closed down 1/4 at 11/16 Wednesday after NetZero filed suit against the New York-based Internet access provider, alleging patent infringement.
According to published reports, NetZero says Juno infringed on a patent it has on a kind of pop-up advertising that is displayed to users of NetZero's free Internet access service.
"Juno denies that it is infringing any valid claim of any NetZero patent," said president and chief executive officer Charles Ardai. "On the contrary, we believe that NetZero has been infringing a key patent held by Juno, in connection with which Juno filed a lawsuit against NetZero in June of this year."
"We look forward to seeing both our suit against NetZero and this new suit brought by NetZero resolved through the appropriate legal process," Juno said.
Juno, with 3.7 million subscribers, says it is the third-largest provider of dial-up Internet services, after America Online and EarthLink. In addition to its free service, the company provides billable online access and, in some markets, high-speed broadband services.
Juno shares have plunged from a 52-week high of 52, amid a weak Internet advertising market and investor nervousness about Internet-related stocks.
Juno reported third-quarter revenue of US$30.1 million, up 130 percent from a year earlier, as its net loss narrowed from the second quarter. Revenue from free Internet services, however, slipped because of sagging demand for online advertising. The company said it expects the trend to continue through the current quarter.
On December 24th, the company said its chief financial officer, Rick Eaton, will leave in the first quarter after completing the company's 2000 financial statements.
NetZero rose 1/32 to 25/32 Wednesday.
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