15 September 2003

LookSmart Pays Out

The search directory LookSmart has agreed on a financial settlement to compensate clients who may have had their websites unfairly removed from the directory's listings.

Between May 13, 1998 and April 9, 2002 many clients made a one-time-payment to see their website indefinitely listed in the directory. In April 2002 LookSmart changed their listing system to use pay-per-click links only; the one-of-payment system was replaced.

Those sites, which did not break the directory's terms and conditions, and which were removed from the database by LookSmart may now be eligible for cash compensation. Web sites eligible for compensation must still belong to their original 1998-2002 owners. LookSmart removed many sites from their database after April 2002 and instructed clients to adopt the pay-per-click system as a replacement.

In recognition of the court case LookSmart had introduced a number of free monthly "pay-per-click" links for sites submitted and approved between May 1998 and April 2002. These free clicks will continue until 2004.

Clients have up until November 14 2003 to complete the claim form (http://aboutus.looksmart.com / about.jhtml?dir=profile&page=claimform) to seek financial compensation.

LookSmart has agreed to payout up to $50.00 for every submitted link that was unfairly removed and up to $250,000 in total to any one client. The web directory admitted that the legal claim against them "had merit".

LookSmart users have until the October 10th to put their request to be exempt from this settlement in writing. Those clients granted exemption by the court will not receive this compensation but will be free to pursue LookSmart in court themselves.

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