471:
unfair and deceptive methods to download adware and obstruct consumers from removing it, in violation of federal law. The settlement bars future downloads of Zango's adware without consumers' consent, requires Zango to provide a way for consumers to remove the adware, and requires them to give up $ 3 million in ill-gotten gains." These restrictions were to remain in force for twenty years, and the agreement also requires respondents Keith Smith and Daniel Todd to notify the FTC of the discontinuance of their current business or employment, or of their affiliation with any new business or employment, for ten years. In July 2007, Edelman said, "Zango continues numerous practices likely to confuse, deceive, or otherwise harm typical users as well as practices specifically contrary to Zango's obligations under its
November 2006 settlement with the FTC."
621:
purchased was saved. Version 4 of Hotbar is no longer usable, as all content is accessible only to version 10. 365-day accounts were sold, valid only for the Hotbar toolset; if Zango was installed alongside Hotbar
Premium. In the overlaid installation, Zango's but not Hotbar's, advertising was shown. Hotbar no longer has premium access available for purchase, so all Premium content is not currently usable. Premium assets may be accessed through examination of linking and related code and insertion into use. Zango itself did not offer Premium access. As of April 2010 Hotbar's website does not mention Premium access.
437:, Zango was shut down after the consortium foreclosed. 100% of Zango's assets were sold to Blinkx, in what the Zango CEO characterized as a "fire sale". When asked about employees, a Blinkx spokesman said "As Zango was insolvent, we believe all the employees were laid off." While technically true, the majority of Zango employees were immediately hired by Blinkx. It was later announced that ZangoCash was to become Pinball Publisher Network, part of the Pinball corporation, though it would still be operating under its own name with no change to its services. This corporation was 100% owned by Blinkx
35:
367:
of many of the formerly "third party" distributors. In June, 180solutions claimed to have re-notified users on its 20-million-user customer base, and implemented a program that notifies all users within 72 hours of install and re-notifies all users every 90 days thereafter. By August, they had filed suit against seven individuals alleged to have illegally distributed its software using a
545:. In 2008, Zango appealed against the ruling. As of April 2008, the National Business Coalition for E-Commerce and Privacy was supporting Zango in the appeal. In June 2009 the court ruled that Kaspersky could not be held liable for any actions it took to manufacture and distribute the technical means to restrict Zango software's access to others.
716:
down the computer and interrupting other programs. Upon downloading a Seekmo-containing file, license acquisition will begin and the program (Windows Media Player, for example) will display a window describing the content and what Seekmo is. Upon clicking "Accept", it will automatically send a file for download called
363:
180solutions' applications were designed to be difficult to uninstall, requiring the user to download an additional uninstall application made by 180solutions or to use an adware removal tool. In 2005 the software uninstall was standardized to use
Windows' "Add or Remove Programs" function, making it easy to uninstall.
653:
users cannot reasonably find the key provisions. First affirmatively mentioning advertising on a screen that offers no Cancel button for users to decline the installation. And ultimately bombarding users with ads in pop-ups, web browser toolbars, Windows
Explorer toolbars, auto-opening sidebars, and even desktop icons.
487:, alleging that Zango deceptively installed spyware on more than 20 million personal computers. The company said its software was voluntarily installed by users who downloaded premium content in exchange for their consent to view advertisements relevant to what they searched for online. During pre-trial
652:
Promoting Hotbar advertising software at sites targeting kids, using banners with smiley faces but without mention of ads. Failing to affirmatively show a license agreement, and burying advertising terms so many screens into the license and below such counterintuitively-labeled section headings that
553:
Unusual methods of installation and operation have evolved as software such as Zango is targeted to run on a broader mix of applications and platforms. Zango has stated on their website that any Zango "application" can be completely uninstalled by using the
Microsoft Windows "Add or Remove Programs"
405:
68 of its approximately 200 employees; Executive Vice
President of Corporate Development York Baur, company co-founder Chief Technology Officer Ken Smith, and company co-founder Chief Information Officer Doug Hanhart also left. Zango said it was narrowing its focus to concentrate on its new product
366:
In 2005, 180solutions implemented a number of initiatives to control the distribution of its software and eliminate non-consensual installs. In March, they acquired one of their distribution partners, a
Canadian company called CDT (dba LoudCash, giving them direct visibility into and greater control
329:
From 2002 to 2005, 180solutions' applications—such as ncase and 180SA (search assistant)—were distributed via various affiliates. While these affiliates were required by the 180solutions contract and by law to obtain the permission of the user prior to software installation, many did not, resulting
257:
A more detailed analysis of this attack, according to one website, is that "Zango continues numerous practices likely to confuse, deceive, or otherwise harm typical users as well as practices specifically contrary to Zango's obligations under its
November 2006 settlement with the FTC." These include
249:
has a Zango-related security advisory dated
November 2006, stating that "Websense Security Labs has discovered a number of user pages on the MySpace domain which have videos that look like they are from YouTube. The videos have an installer embedded within them for the Zango Cash Toolbar. When users
715:
files, screen savers, and videos. Seekmo can pop up advertisements even when users have pop-up blockers on their computers, and monitors computer usage to generate ads that users are more likely to respond to. In the process, the program can consume processing power and network bandwidth, slowing
620:
Hotbar as supplied by Zango had an option to turn off the advertisements, for a fee. The fee-based
Premium access also unlocked certain content beyond the preview stage in Hotbar's utilities. Grandfathered version 4 Premium accounts had unlimited access, as long as the activation link supplied when
470:
with the FTC, without formally admitting guilt. In the words of the Federal Trade Commission press release, "Zango, Inc., formerly known as 180solutions, Inc., one of the world's largest distributors of adware, and two principals have agreed to settle Federal Trade Commission charges that they used
465:
The same year, the Federal Trade Commission charged Zango with "Deceptive Failure to Disclose Adware", "Unfair Installation of Adware", and "Unfair Uninstall Practices" in violation of the Federal Trade Commission Act. Since the FTC ruling, security researchers continued to find Zango involved in
383:
Despite the initiatives of 2005, 180solutions admitted that it was possible for malicious parties to hack their install routines and thus cause fraudulent installs. They claimed that the percentage of fraudulent installs had dropped from over 10% to under 1%. Critics considered that the business
350:
prompt simply asked the user to install the software so that they could receive "comparison shopping advertisements." 180solutions contended that the value of the bundled software or the advertisements made up for the inconvenience of the pop-up ads. The value of this trade-off was contested by
603:
to emails created in Outlook or Outlook Express and to check weather reports. Its major revenue comes from the use of pop-ups displayed according to a user's behavior and current URL. The application can show over 15 pop-ups a day, depending on how much Internet browsing has occurred. The last
281:
said in 2005 "this program may have legitimate uses", but described it as a "potentially unwanted program" and an "adware downloader." Automated analysis by McAfee SiteAdvisor in May 2008 reports "629 red downloads" and that during testing, McAfee "found downloads on this site that some people
557:
Utilities exist for the purpose of detecting, and in some cases removing Zango and similar software. Some software advisers have recommended that people seeking to remove Zango-like software from their computers search for instructions specific to their particular platform, application, and
362:
researcher, analyzed the network behavior of 180solutions applications and claimed they redirected commissions to themselves that were properly due to affiliates, and additionally caused merchants to pay commissions when affected users clicked on merchant sites directly. During this time,
720:. After downloading this file users must install the Seekmo Toolbar, which will display advertisements related to the websites visited. As of August 2011 Seekmo is still available, and identifies itself as belonging to Pinball Corp.; operation may no longer be as described above.
647:
due to its banner advertising and use of pop-up windows. The user's browsing habits are also sent to the Hotbar servers with a unique user ID which allows a user's browsing habits to be tracked over an extended period. Spyware researcher Benjamin Edelman defined Hotbar's problems:
345:
which the user intentionally installed; since permission to install the 180solutions adware was typically hidden in an EULA, most users were unaware they were installing adware. In some cases 180solutions' software was installed as a standalone install. Using this method, an
604:
reported usable version is 10.0.357.0, dated October 9, 2007. Currently, it often self-updates to a later version that deactivates the toolbar and Outlook components (as it is completely incompatible with all versions of Internet Explorer after IE7, along with all
521:
at that time classified Zango software as malicious and removed it without informing users. Zango dropped the suit after the judge ruled that the suit was "unlikely to succeed on the merits of any of its three causes of action" and refused to grant Zango a
594:
produced by Zango; as of August 2010 Hotbar has closed distribution, but is still available to those who still have the installer. From version 10.2 on, it identifies itself as belonging to Pinball Corp. Hotbar adds a toolbar and the option of extra
207:
Zango's consumer website asserted that the company was "committed to creating a content economy built on a foundation of safe and ethical practices by protecting consumer privacy while offering a fulfilling and high-value content experience." It provided
398:"Secret Crush" was enticing users to download Zango adware by promising to identify a secret admirer. Zango denied any involvement with the widget, and further investigation by an Infoworld senior writer showed that the Fortinet report was incorrect.
422:
In a personal bankruptcy filing following a January 2009 $ 4.6 million judgment in favor of a former employee, Zango's CEO stated that the company was in default to a bank consortium for over $ 44 million. On April 20, 2009, industry magazine
541:(CDA), saying it was immune from civil liability based on the paragraph of the CDA headed "Protection for 'Good Samaritan' blocking and screening of offensive material". The judge agreed, granting Kaspersky's motion for
216:
and others had provided content, but WB terminated its business relationship with Zango after concerns were raised that children viewing Warner Bros. content could be exposed to advertisements for
1234:
410:, a "casual gaming experience" that showed targeted ads, shopping comparisons and search suggestions based on keywords from the user's Internet browsing. On December 15, 2008, Zango closed their
1878:
299:. This business model paid users a minimal amount to surf the Internet while running an application that showed banner ads. Users could also make money by referring new users.
375:
in breaking up a botnet ring in the Netherlands. In December, the company ended distribution of the 180SearchAssistant and closed LoudCash, a remnant from the CDT acquisition.
462:
complaints charged 180solutions with engaging in unfair and deceptive business practices, deliberately duping Internet users into downloading intrusive advertising software.
1873:
1047:
243:
cannot be closed". The same site states, "We find that Zango Easy Messenger is not badware, although it does engage in behaviors that users should be aware of."
1701:
250:
click on the video, they are directed to a copy of the video, which is hosted on a site called 'Yootube.info.' ... the video downloads and attempts to install
1804:
1611:"U.S. Code Collection: TITLE 47 > CHAPTER 5 > SUBCHAPTER II > Part I > § 230. Protection for private blocking and screening of offensive material"
865:
943:
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1175:
295:
Keith and Ken Smith, the CEO and CTO respectively, founded ePIPO in 1999. It was one of the first "pay-to-surf" companies, following in the footsteps of
1632:
1231:
1102:
26:
1883:
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model was untenable because fraud against 180solutions which harmed unknowing users via non-consensual installs could never be completely removed.
1205:
1483:
1296:
554:
function. However, Zango may appear as a browser plug-in or in some other form which cannot be removed by the officially recommended procedure.
630:
199:. However, As of April 2010, Hotbar, Seekmo, and ZangoCash, formerly owned by Zango, continue to operate as part of Pinball Corporation.
1857:
799:
1705:
459:
1011:
506:
1316:
895:
665:". As a countermeasure, Symantec successfully sued Hotbar.com to get clear right to put it in their "low risk adware"-category.
168:, was a software company that provided users access to its partners' videos, games, tools and utilities in exchange for viewing
414:
office, which had been the Hotbar headquarters before Hotbar and 180solutions merged, thereby laying off another 50 employees.
1564:"ZANGO, INC., Plaintiff, v. PC TOOLS PTY LTD., Defendant. – Denial of Motion for a Temporary Restraining Order (PDF, 9 pages)"
495:, meaning that the suit cannot be brought again by the same complainants. Each side agreed to pay its own fees and expenses.
1044:
838:
681:
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in return for partner companies' content such as sports, comedy, dance, erotic videos, online games, and screensavers.
181:
1276:
523:
633:
1179:
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Easy Message. Originally developed by Ryan Dewsbury, it was acquired by Zango in February 2005. It connects to the
538:
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455:
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in 2001. The company, which changed its name to 180solutions, adjusted their technologies in several ways:
258:
failure to include on-screen disclosure of material terms, widespread in-toolbar ads without labeling and
1749:
1654:
815:
337:
180solutions' software showed pop-up ads while a user was surfing the Internet. This software was often
262:, ads for "bogus sites that attempt to defraud users", and third party installations without disclosure.
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510:
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1162:
209:
169:
91:
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1776:
231:
lists a number of undesirable behaviors associated with Zango Easy Messenger, including "behaves as
1792:
1679:
579:
330:
in millions of illegal non-consensual installs. Many other affiliates notified users only via the
1375:
739:
434:
900:] video on MySpace installing Zango Cash – Threat Type: Malicious Website / Malicious Code"
796:
302:
After enjoying brief success, the pay-to-surf business model declined with the bursting of the
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274:
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903:
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for blocking the installation of Zango software. Kaspersky defended itself by invoking the
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1655:"ZANGO, INC., Plaintiff, v. KASPERSKY LAB, INC., Defendant. – Dismissal (PDF, 8 pages)"
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334:, resulting in millions more arguably legal but essentially non-consensual installs.
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reported that Zango had become defunct. A spokesman for video search engine company
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said that although Blinkx had purchased some of Zango's technical assets such as
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problematic installs. In November 2006, Zango settled this complaint, via a
259:
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program by Zango that claimed to be a free tool to provide content such as
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Classified as "Caution – objectionable behavior but clearly informs users"
529:
Also in May 2007, Zango filed in the same court a similar lawsuit against
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342:
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188:. Zango was co-founded by two brothers: Keith Smith, who served as the
1633:"Zango tries, fails to sue its way out from under the "spyware" label"
371:. In November, 180solutions announced an ongoing partnership with the
25:
732:
708:
685:
644:
430:
402:
368:
278:
266:
185:
173:
115:
58:
1064:
Non-consensual 180 Installations Continue, Despite 180's "S3" Screen
692:. However, some utilities do not remove Hotbar completely and leave
1415:"Zango Practices Violating Zango's Recent Settlement with the FTC"
1257:
926:"Zango Practices Violating Zango's Recent Settlement with the FTC"
282:
consider adware, spyware or other potentially unwanted programs."
1702:"Adware Company Gets Assist From Business Groups In Legal Battle"
1397:"Zango, Inc. f/k/a 180Solutions, Inc., et al.., In the Matter of"
1376:"Zango, Inc. f/k/a 180Solutions, Inc., et al.., In the Matter of"
1343:"Zango, Inc. f/k/a 180Solutions, Inc., et al.., In the Matter of"
1033:
The Effect of 180solutions on Affiliate Commissions and Merchants
1461:
1312:
CDT Files Complaints Against Major Adware Distributor (archived)
331:
1294:
pay-per-install.org: Zangocash is now Pinball Publisher Network
1511:"Spyware company sues Zone Labs over being called "high risk""
755:
712:
372:
314:
320:
To be bundled with other potentially valuable applications.
1680:"Zango's Brief in Zango v. Kaspersky Ninth Circuit Appeal"
1827:
1773:
1704:. MediaPost Publications. April 15, 2008. Archived from
533:, accusing it of tortious interference, trade libel and
172:
placed on their computers. Zango software is listed as
1160:
Casualties: Zango's recent layoffs include senior execs
661:
letters to security companies which defined Hotbar as "
1484:"Class-Action Suit Dismissed Against Spyware Provider"
1437:"Logan Simios v. 180solutions, CLASS ACTION COMPLAINT"
1077:"Zango Pleads 'Not Guilty' in Facebook Adware Flap"
195:In April 2009 Zango ceased trading after its banks
139:
129:
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98:
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72:
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599:to these programs. It also allows the user to add
479:In September 2005, attorney Shawn Collins filed a
391:reported, incorrectly, that the rapidly spreading
354:In 2004, Benjamin Edelman, assistant professor at
1660:. U.S. District Court at Seattle. August 28, 2007
839:"Warner Bros. To Cut Link With Adware Firm Zango"
816:"Warner Bros. Calls Off Deal With Adware Company"
1613:. Cornell University Law School. January 3, 2005
1314:January 27, 2006 – archived, original location:
1176:"Zango shuts down Tel Aviv office Archived copy"
1103:"Zango strikes back over reported Facebook hack"
1879:Defunct software companies of the United States
1317:"CDT | Policy Post 12.2, January 27, 2006"
971:
969:
650:
446:Federal Trade Commission charges and settlement
1569:. U.S. District Court at Seattle. June 5, 2007
668:Hotbar can be detected and removed by several
235:", "automatically runs on startup", "displays
1849:Adware Firm Driven Under by Security Industry
1232:Notorious adware vendor Zango shuts its doors
454:group filed two official complaints with the
8:
1793:Hotbar Installs via Banner Ads at Kids Sites
786:Zango Ad Services Debuts at ad:tech New York
18:
1803:United Press International, March 1, 2006,
505:In May 2007, Zango filed a lawsuit against
325:2002–2005: Distribution via other programs
310:To show pop-up ads rather than banner ads.
33:
24:
17:
1442:. U.S. District Court. September 13, 2005
1199:
1197:
1134:"68 lose jobs as Zango moves into gaming"
39:The 180Solutions – Zango building in 2006
1730:. Kaspersky Press Release. June 30, 2009
1558:
1556:
1531:"Zango sues antispyware vendor PC Tools"
657:In 2005–2006 Hotbar.com started sending
628:
192:; and Ken Smith, who served as the CTO.
1874:Companies based in Bellevue, Washington
1054:180Solutions 5:33 PM, February 23, 2006
778:
387:In early 2008, security researchers at
1589:"Zango Drops Lawsuit Against PC Tools"
1277:"Confessions of a Would-Be Theologian"
351:critics of the adware business model.
1817:Hotbar Removal Instructions and Help
1815:PC Hell, checked September 12, 2007,
1682:. Eric Goldman's Blog. March 30, 2008
977:"Threat Profile: Adware-ZangoSA.dldr"
7:
797:zango.com – Tags: Popular – All Time
1509:Reimer, Jeremy (December 2, 2005).
460:Center for Democracy and Technology
1066:Benjamin Edelman February 24, 2006
14:
1109:. January 8, 2008. Archived from
1035:Benjamin Edelman October 20, 2004
612:products), rendering it useless.
483:against Zango on behalf of three
1884:Companies disestablished in 2009
1805:Symantec settlement riles Hotbar
1791:Benjamin Edelman, May 16, 2005,
1204:Dudley, Brier (April 22, 2009).
1012:"Zango co-founder muses on deal"
1635:. ars technica. August 30, 2007
1363:Zango, Inc. Settles FTC Charges
517:, because the PC Tools product
1728:"Kaspersky Lab Press Releases"
1537:. May 18, 2007. Archived from
1462:"Zango Spyware Suit Dismissed"
902:. websense.com. Archived from
837:Krebs, Brian (July 28, 2006).
735:-containing adaptation of the
401:On June 16, 2008, the company
224:Undesirable software behaviors
1:
1258:"Zango Shuts Down Operations"
896:"Fradulent You Tube [
682:Spybot - Search & Destroy
1132:Cook, John (June 17, 2008).
502:for labeling it as spyware.
291:1999–2001: Pay-to-surf model
265:Zango software is listed as
182:potentially unwanted program
104:Keith Smith, co-founder and
1591:. Betanews. August 28, 2007
1464:. ClickZ. September 8, 2006
524:temporary restraining order
239:", "installs adware", and "
180:, and is also labeled as a
1900:
1139:Seattle Post Intelligencer
539:Communications Decency Act
491:, the parties agreed to a
332:end user license agreement
802:October 12, 2007, at the
32:
23:
1299:January 1, 2011, at the
643:Hotbar is an example of
588:Microsoft Office Outlook
549:Installation and removal
493:dismissal with prejudice
456:Federal Trade Commission
313:To not have any visible
1750:"Ninth Circuit Opinion"
1256:XBIZ (April 21, 2009).
1237:April 24, 2009, at the
1000:retrieved May 17, 2008.
696:keys and files behind.
450:On January 23, 2006, a
356:Harvard Business School
106:Chief Executive Officer
1833:April 2, 2010, at the
1779:April 8, 2010, at the
1050:July 22, 2006, at the
866:"Zango Easy Messenger"
655:
640:
513:with its business and
1281:wouldbetheologian.com
944:"Adware. ZangoSearch"
632:
511:tortious interference
379:2006–2008: Downsizing
237:pop-up advertisements
1708:on February 14, 2007
1182:on December 17, 2008
906:on February 26, 2010
676:programs, including
498:In 2005, Zango sued
481:class action lawsuit
210:targeted advertising
170:targeted advertising
152:, (also letter case
92:Bellevue, Washington
1490:. September 7, 2006
1403:. November 3, 2006.
1385:. November 3, 2006.
1352:. November 3, 2006.
1113:on January 12, 2008
131:Number of employees
20:
1206:"Zango goes Bango"
954:on August 26, 2006
876:on October 4, 2008
641:
254:from Zango Cash."
1083:. January 8, 2008
1014:. bizjournals.com
737:instant messaging
610:Windows Live Mail
584:Internet Explorer
535:unjust enrichment
275:Computer security
147:
146:
1891:
1858:Removal of Zango
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1417:. benedelman.org
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1365:November 3, 2006
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1319:. Archived from
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818:. amdwelling.com
812:
806:
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788:
783:
748:Yahoo! Messenger
719:
694:Windows registry
690:Norton AntiVirus
678:Windows Defender
659:cease and desist
543:summary judgment
475:Other litigation
253:
241:bundled software
83:
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1835:Wayback Machine
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1781:Wayback Machine
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1755:. June 25, 2009
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1757:. Retrieved
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1706:the original
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1639:September 5,
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1539:the original
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1494:September 5,
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1209:
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1111:the original
1106:
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1085:. Retrieved
1081:Internet.com
1080:
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1016:. Retrieved
1010:Cook, John.
1005:
998:Site Advisor
993:
981:. Retrieved
956:. Retrieved
952:the original
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904:the original
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874:the original
860:
848:. Retrieved
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810:
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670:anti-spyware
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156:), formerly
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149:
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88:Headquarters
45:Company type
15:
1860:www3.ca.com
1853:PC Magazine
1275:Ken Smith.
822:October 28,
638:StopBadware
625:Controversy
515:trade libel
218:pornography
125:Undisclosed
1868:Categories
1595:August 28,
1117:January 8,
1018:August 21,
774:References
758:networks.
674:anti-virus
485:plaintiffs
441:Litigation
260:hyperlinks
197:foreclosed
100:Key people
1712:April 15,
1686:March 30,
1535:Infoworld
1421:August 5,
1107:InfoWorld
1045:Mea Culpa
768:Superfish
718:setup.exe
601:emoticons
509:alleging
500:Zone Labs
489:discovery
252:setup.exe
1831:Archived
1777:Archived
1734:June 30,
1327:April 5,
1297:Archived
1235:Archived
1217:June 29,
1145:July 18,
1048:Archived
983:April 8,
958:June 13,
948:Symantec
880:July 10,
800:Archived
762:See also
562:Variants
507:PC Tools
412:Tel Aviv
408:Platrium
403:laid off
393:Facebook
389:Fortinet
343:freeware
277:company
271:Symantec
247:Websense
178:Symantec
112:Products
55:Industry
1759:July 7,
1545:May 19,
1401:ftc.gov
1383:ftc.gov
1350:ftc.gov
1087:July 6,
850:July 1,
663:malware
578:) is a
576:HbTools
435:servers
360:spyware
348:ActiveX
339:bundled
286:History
233:spyware
203:Content
140:Website
122:Revenue
78: (
73:Defunct
65:Founded
49:Private
910:May 2,
740:client
733:adware
731:is an
709:adware
707:is an
705:Seekmo
700:Seekmo
688:, and
686:Nod 32
645:adware
580:plugin
572:Hotbar
567:Hotbar
458:. The
431:Blinkx
396:widget
369:botnet
279:McAfee
267:adware
186:McAfee
174:adware
166:Hotbar
116:Adware
59:Adware
1753:(PDF)
1658:(PDF)
1567:(PDF)
1440:(PDF)
1379:(PDF)
1346:(PDF)
597:skins
341:with
158:ePIPO
154:zango
150:Zango
94:, USA
19:Zango
1761:2009
1736:2009
1714:2008
1688:2008
1666:2007
1641:2007
1619:2007
1597:2007
1575:2007
1547:2007
1496:2007
1470:2007
1448:2007
1423:2007
1329:2008
1262:XBIZ
1219:2009
1188:2008
1147:2008
1119:2008
1089:2008
1020:2012
985:2010
960:2007
912:2010
882:2008
852:2008
824:2019
754:and
672:and
608:and
590:and
582:for
358:and
164:and
135:~100
80:2009
76:2009
68:1999
898:sic
756:ICQ
744:AIM
713:MP3
636:by
373:FBI
315:GUI
269:by
190:CEO
184:by
176:by
1870::
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