SmartBargains.com wins in Overstock.com pop-up suit

Utah's state Supreme Court held ruled in favor of SmartBargains.com in a lawsuit brought against it by Overstock.com.

The court ruled that insertion of unwanted competitive pop-up advertisements does not constitute unfair competition or tortious interference.

Overstock.com sued its competitor, SmartBargains, alleging violations of the State's anti-spyware statute related to unfair competition and tortious interference with prospective business relations.

Overstock accused SmartBargains of causing SmartBargains pop-up ads to appear when an Internet user visited Overstock.com.

The trial court granted summary judgment for SmartBargains. The court held that the anti-spyware statute was unconstitutional and found that Overstock had not presented a genuine issue of material fact on its unfair competition and tortious interference claims. On appeal, the Utah Supreme Court affirmed the grant of summary judgment.