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Spy vs. Spyware

August 26, 2004

Tacoda’s Dave Morgan and VC Fred Wilson have both opined about the Bono Bill that recently passed through the House and is on to the Senate. Morgan laments that the bill will limit ‘legitimate marketers’ abilities to utilize cookies. Wilson said he met with his senator on this issue. A bit late to the game guys! Spyware and Adware companies have been meeting with legislators for over a year now.
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Spies Will Move to China
While we agree that legislation is nice to have, we don’t believe it will have much effect in practice. Spam has proven to be lucrative and when Congress passed the Can Spam legislation in the US, purveyors of spam merely went overseas – we must have received a thousand offers from China for an $18 wet suit. We are certain that the same will happen with Spyware. Companies like Claria and WhenU have already started to adjust their business practices so they will not get busted by anti-spyware legislation. But the street-fighting tactics that built their businesses are proven money makers and will doubtlessly be deployed overseas. Technology is the only real answer – that’s why anti-spam and anti-spyware business is so sweet.
Read – The Endangered Cookie [ClickZ]
Read – Throwing the Baby Out With the Bathwater [A VC Blog]
View – HR 2929 Legislation

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