XBIZ -- May 18 -- Friendfinder (Various Inc) filed suit against affiliate managers, Jack Mardack and Sean Barrett for breach of contract, misappropriation of trade secrets and defamation, among other charges, after they left the company and formed Profit Lab, which does consulting work for competitor Sex Search. Mardack is accused of poaching the company’s affiliate list and that both execs embezzled and diverted company funds. The suit further alleges that Mardack shared its affiliate list with competitors, helped set up a competing joint venture while employed at Friendfinder and brokered unauthorized payouts while paying those funds to himself and Barrett, and that Mardack made false statements that the company’s “payment processing was in jeopardy due to Friendfinder’s bad financial condition.” Mardack denies all allegations and says he left FriendFinder because of a "hostile environment. "I am saddened by the retaliatory sentiment and paranoid tone from Friendfinder. I didn’t take away such an affiliate list. One who does business in this industry knows that everyone who works in it also has a personal list.” Friendfinder seeks damages and a permanent restraining order against Mardock and Barrett from future use of its affiliate list.
The full article was originally published at XBiz, but is no longer available.
Mark Brooks: Fascinating. In the sales world salespeople can walk away with their rolodex. How is the affiliate world different? I would argue that an affiliate manager should be able to take his 'relationships' from affiliates that he has recruited for the company. But, not the affiliates already in place. How to track? Just what is a 'personal list?' This case may well lead to some significant affiliate management legal precedents. Watch this space.
Here is a better article, + legal document which somewhat explains what is going on.
http://www.avnonline.com/index.php?Primary_Navigation=Web_Exclusive_News&Action=View_Article&Content_ID=227231
Looks like it is a battle over the top 5 to 20 of top affiliates of AFF and StreamRay.
Interestingly enough, Jack was fired right around the time Friendfinder merged with streamray.com. Its hard to believe no one reported on it, its like eharmony merging with match.com, except this is bigger.
Announcement here. http://www.buckspipe.com/modules/news/article.php?storyid=481
Now it gets even more interesting, as webdate.com is a division of streamray. (check dns servers for sublimedirectory and webdate.com) So as of March 2005 Friendfinder is the owner of webdate.com.......
Posted by: Markus | May 21, 2005 at 06:29 PM
Further proof that Friendfinder owns webdate.com. I had posted the original on the userplane blog a while back.
Opportunity Number: 2997119
CompanyName: Confidential Company
Location: miami beach, FL US
Categories: Information Technology
Salary: 60k-140k
Minimum Education: 4-Year College Degree
Updated: 10/13/2004
System Admin
LAMP
RK NETMEDIA
Webdate.com Internet Development Manager
Number Date Type Wage
1326724 09/29/04 Full Time-Experienced 60k-140k
Start Openings Location Hours
Immediate 1 Miami Beach, FL 9am-6pm
Company Description
Large Internet company think-tank with several properties in the Alexa top 100. We are constantly thinking of new concepts to develop Internet properties. Most of our properties are based around online communities. We have a corporate infrastructure on the cutting edge of technology. We hold several patents and copyrights associated with our Internet properties and technology. Some of our Internet properties include webdate.com, learnaboutyourslf.com, cellspot.com, sublimedirectory.com, etc. Very laid back young firm in South Beach Miami. Offices are located on 7th and Washington two blocks from the beach. Executive management is all under 30 years of age.
Job Qualifications
Must have at least a 3.5PA and a 1400 SAT from MIT, Cal Tech, Stanford, Ivy League.
Computer knowledge is essential. The more technical the better. Engineering and Computer Science majors preferred but not necessary. LAMP Skills. Linux guru.
Job Description
We are looking for a smart and technically proficient individual that will administrate and architect a 100+ server farm. Constantly monitor and administrate various clusters. Check all directories daily for excess logs and lack of disk space. Make sure that all sites are up and running in perfect operating condition. Consult with the executive team on the architecture, functionality, implementation of future clusters for upcoming projects
Posted by: Markus | May 21, 2005 at 11:00 PM
Having spent time in sales I can say that most companies who are protective of their interest will make all, including salespeople sign non-competition and non-solicitation agreements. I don't see why a company wouldn't require salespeople to do this too. We all make acquaintaces in our respective industries, but common sense often guides our ethical treatment of these contacts.
Posted by: Steve Winkler | May 22, 2005 at 09:44 PM
Just to clarify, Various and its affiliated companies do not own or operate Webdate. Our only relationship with them is a contractual arrangement where we operate cams on their site.
Timothy Chanaud
Senior PR Manager
Various Inc/FriendFinder
Posted by: Timothy Chanaud | May 23, 2005 at 02:27 PM
I talked to the CEO's of FriendFinder and Webdate. Webdate is not a division of Steamray.
Regards,
Mark Brooks
[email protected]
Editor
Online Personals Watch
Posted by: Mark Brooks | May 25, 2005 at 12:01 PM