December 16, 1996 6:00 PM ET
E-mail marketer loses another suit, this time to Prodigy
By Maria Seminerio

  E-mail marketer Cyber Promotions Inc. scored a hat trick recently as it lost its third legal battle with a commercial online service.

Prodigy Services Corp. received an undisclosed sum in damages from the Philadelphia-based mass-mailer after a judge last week ordered it to stop sending unsolicited E-mail advertisements to Prodigy subscribers and falsely claiming its advertisements were sent by Prodigy, company officials said.

Competing online services CompuServe Inc. and America Online Inc. have won similar injunctions against Cyber Promotions over the last few months, but users bombarded with "spam mail" from the company might not have noticed a significant decline in volume: Getting mail through is as simple as changing domain names when old ones are blocked.

But Prodigy officials said the court settlement translates to a victory for subscribers.

"Prodigy will continue to defend its brand, its image and its name against any entity attempting to associate [its] name with unsolicited E-mail advertising," said Marc Jacobson, general counsel for Prodigy, in White Plains, N.Y.

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