$25 Million Counterclaims on Behalf of Resultly, LLC Against QVC, Inc. and Defeat of QVC’s Motion

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25 Million Counterclaims on Behalf of Resultly, LLC Against QVC, Inc. and Defeat of QVC’s Motion for Preliminary Injunction

Andrew Grosso & Associates, a District of Columbia law firm, announced today the defeat of a motion for a preliminary injunction filed by QVC, Inc. against Resultly, LLC and the filing of $25 million counterclaims against QVC.

Resultly is a six-person Internet start-up company developing technology to search retailers’ websites to advertise the merchandise of these retailers to the public in real time. QVC is a multi-billion dollar global video and commerce retailer. QVC filed the initial lawsuit alleging that Resultly effectively engaged in a denial of service attack on its website and sought a preliminary injunction under the Computer Fraud and Abuse Act (“CFAA”). The District Court denied the motion. In its Opinion, the Court said: "To show a likelihood of success on the merits of its CFAA claim, QVC must show that when Resultly crawled QVC’s website, it intended to cause damage to QVC’s server. However, the evidence introduced at this stage in the proceedings overwhelmingly shows that Resultly had no incentive or desire to cause QVC’s webpage to slow down, let alone overload. To the contrary, Resultly’s business plan requires that the websites it crawls stay functional."

Resultly filed counterclaims claiming that QVC’s lawsuit is little more than an anti-competition measure and that QVC violated state law and the Lanham Act by misrepresenting that it encouraged, invited, and allowed third parties to crawl its website and to display and sell its products, whereas it only intended to allow preferred companies to do so. According to Andrew Grosso, lead counsel for Resultly, “This Court’s opinion confirms that the Internet is for all users–big or small, established and start-up. Resultly intends to remain in the forefront of these developments.”

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http://finance.yahoo.com/news/andrew-grosso-associates-announces-filing-210300438.html