(WEB HOST INDUSTRY REVIEW) — In early June the US Federal Trade Commission (www.ftc.gov) effectively pulled the plug on web host 3FN for allegedly distributing spam, child pornography, and other illegal content. Claiming the shutdown has cost it $5,000 a day, Spanish pornography company New Concept Business (www.ncb.es) threatened to become a third-party litigant against the government, however it has since dropped its plan after getting back all the data taken by the FTC.
According to adult trade publication XBIZ.com, NCB, which operates nearly two dozen adult websites and affiliate programs ETU-Cash.com and Cash.Pornocruto.es, dropped its pursuit of legal action against the government over its temporary injunction against San Jose-based Pricewert, the company behind the 3FN brand.
NCB’s business nearly ground to a halt after a US judge signed an injunction against Pricewert, resulting in a loss of about a quarter of a million dollars since the court ruling, NCB attorney E. James Perullo told XBIZ.
The FTC said its decision to shut down Pricewert wasn’t based on it breaking the law, but rather that it suspected it was involved in illegal activities. Perullo said there was no legal reason to permit an injunction against an ISP’s entire operation.
Perullo told XBIZ he is disappointed by the company’s decision to not go after the FTC, however, it appears NCB makes enough profit that no court-ordered damage award would be worth its effort. “New Concept Business has decided to drop the case against the FTC since they got all the data that was earlier taken by the FTC,” Perullo told XBIZ. “Though I am happy for NCB to have gotten their data back, I’m also pissed because I no longer have a client to make an argument against the FTC — and the FTC deserves a slap,” he said.
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