Microsoft has won a $4 million spam verdict and hailed the court decision as another victory in its anti-spam crusade.
The claim was placed in June 2003 against a California man Daniel Khoshnood for trademark infringement, false advertising and cybersquatting during a commercial e-mail campaign over a desktop toolbar program for Windows.
Khoshnood was ordered to pay $3.95 million after the court heard that a flood of spam on Microsoft's MSN and Hotmail services claimed to offer a toolbar that, once installed, would automatically update recipients' Windows systems with security patches.
A summary judgement was put against Khoshnood and his companies, Pointcom and Joshuathan Investments, in January, which ordered him to stop using Microsoft's trademarks and name, refrain from spamming, and pay damages to and legal fees for the software giant.
Microsoft hailed the judgement as another victory in its anti-spam initiative, started last year. "Targeted enforcement activity is beginning to have a tangible, negative financial impact on spammers and is changing the economics of spam," the company said.
According to Microsoft, the company has filed 60 lawsuits against spammers. Of those cases, it has so far settled four, won six by default, had one summary judgement, and had one dismissed.
The company has been awarded $54 million in judgements from spammers, five of whom were among the top 10 known spammers, Microsoft said. It has yet to collect more than a fraction of the money award however.