Legal

Late last year, a lawsuit was discreetly filed by Spark’s popular niche dating website JDate against dating app JSwipe. According to Forbes who broke the story, JDate claimed that JSwipe was infringing on the company’s trademark “J” by using it in the name of their app.

JDate isn’t the only Jewish online dating website that caters to the Jewish community and uses the letter “J” in its offerings. There is also JCrush, JWed, JPeopleMeet, Jewish Café, and Jewcier to name a few. In fact, it seems difficult to name a niche dating app catering to the Jewish community without using the letter J. But there is more to the story, which potentially puts all online dating sites and apps in danger of patent infringement.

In the lawsuit, JDate also claims it owns the patent on software that “confidentially determines matches and notifies users of mutual matches in feelings and interests.” JSwipe is similar in its process to Tinder, which also notifies users when matches swipe right on their picture. This is in violation of JDate’s patent.

Why then has JDate not sued other websites or dating apps, since this is such a broad definition of matching that almost every dating app and website uses? Notifying users of potential matches is the bread and butter of online dating. Why not go after an app like Tinder?

The key might lie in the competition JSwipe presents, especially if it is gaining market share in the niche online dating space. According to the Forbes writer who broke the story, JSwipe’s founder David Yarus confidentially confessed the lawsuit to him, though he is forbidden from discussing details. Instead of accepting JDate’s acquisition offer (which he considered too low), he decided to fight the lawsuit rather than sell. (For all you fans of Silicon Valley on HBO, this sounds vaguely similar to Pied Piper’s plight as an up-and-comer in the tech world.)

But JDate might have a case against JSwipe. According to Forbe’s research into intellectual property law, the language used in JDate’s patent was registered in 1999, and it is broad – broad enough (as mentioned earlier) to cover most dating websites and apps on the market today – so they could essentially claim IP infringement over any other company in the space. According to analysts, this might be a move by JDate to acquire JSwipe for a steal. Chances are if they tried to sue Match or Tinder, those companies' lawyers would be able to fight and win. JSwipe is too small a player.

Using the letter “J” in a dating app or website is apparently less clear-cut in legal terms. JDate would have to find evidence that users confuse Jswipe with JDate, which means asking users to testify that they thought Jswipe was part of JDate, or somehow affiliated, which would be trickier and more time-consuming.

JSwipe is fighting back. They have set up a crowdfunding website and asked for Jewish lawyers to take them on pro bono. 

For more on the Spark Networks dating site, you can read our review of JDate.

On Sunday June 14^th, people across America were acknowledging Flag Day, an annual tradition, over social media. Coincidentally, it was also the annual celebration of the LGBTQ community – an event known as Pride. So when Coffee Meets Bagel reached out via social media to announce its support of Flag Day, the online dating service mistakenly caused an uproar because of a typo.

The now-infamous tweet which was widely criticized over social media and the subject of a story in the Washington Post, said: “It’s Fag Day. Hoist your colors and don’t forget to LIKE today’s Bagel.”

People on the East Coast were the first to catch the mistake, but many didn’t realize it was a typo and immediately took to Twitter to denounce the dating service, with one person posting: “Got a notification from @coffeeMbagel saying today was "fag day." I'm disgusted at the audacity to say that during pride. #coffeemeetsbagel.”

Many people weren’t aware of Flag Day, but they were aware of Pride celebrations, which made the typo even worse. They thought the company had posted the tweet on purpose.

Coffee Meets Bagel took down the post after they realized the typo. But thanks to the speed at which social media can influence a story, and the incredibly bad timing that the typo happened during Pride, the company had little chance to correct the error. They have since been apologizing and repeating that it was just a simple mistake.

About three hours after the notification went out, users received an e-mail from the company’s head of customer experience apologizing for the misspelling. It reads, in part:

“I would like to apologize wholeheartedly for the message you received this afternoon. The misspelling of Flag Day was a mistake and a complete oversight. We’re updating our process to ensure something like this does not happen again…Coffee Meets Bagel, as a company and as individual employees, celebrates the LGBTQ community and would never use such a word.”

While it might just be a simple oversight, the bigger question is: will it hurt CMB in the long-run, if people associate their brand with a lack of support of the LGBTQ community?

We have all sent emails and social media posts with typos – this isn’t uncommon. What is a shame in this instance is that a company sent an official tweet meant to show support of both Flag Day and the LGBTQ community, and yet, ended up alienating their customers and potential customers in the process.

IAC is no doubt a leader in the dating market, with such prominent online dating brands as Match.com, Tinder, and OkCupid, which make up a company subsidiary called The Match Group.

The Match Group has announced its plans to launch its first IPO, making the company available for investment dollars from the general public. Match.com has long been a cash cow in the online dating industry with its paid subscription service, and Tinder with its new premium paid service has been reported to be worth about $1 billion by the end of the year. In fact, the combined revenues of all the companies in The Match Group accounted for nearly one third of IAC's overall revenue in the most recent quarter. They're also growing rapidly, surging 13% year-over-year in the most recent quarter to about $239 million.

Greg Blatt, Chairman of The Match Group said in a statement: "The Match Group is poised for substantial growth in the coming years. The dating industry has come a long way since its inception, but the category remains underpenetrated.  We believe the combination of our more established businesses such as Match, Meetic, and OurTime, and earlier stage businesses such as Tinder and OkCupid, creates an attractive combination of significant cash flow generation, strong margins and meaningful growth potential.” 

This comes at a good time, as Zoosk recently pulled its plans to launch an IPO, leaving the dating space wide open for potential investors. Ashley Madison, a dating site for infidelity, was quick to throw its hat in the ring, too. They are planning a second attempt at an IPO for later this year after a forfeited attempt in 2011.

The Match Group joins other prominent and publicly traded online dating services, notably Spark Networks, which owns several niche dating sites such as JDate, Christian Mingle, and BlackSingles.com, as well as Jiayuan.com, the largest online dating site in China.

After the IPO, investors will be able to buy stock in the company, although the ticker symbol is not yet known. Notably, IAC made the decision to split The Match Group from its parent company to do the IPO.

Barry Diller, IAC’s Chairman and Senior Executive said in a statement: "As many know from our actions over the last 20 years, I'm not a believer in simply agglomerating assets in perpetuity.  I've long felt that as entities grow into size and maturity it's healthy to give them separation and independence from a mother church.”

The hacking of large company databases for personal and compromising information is on the rise. First it was giant retailer Target, then entertainment studio Sony, followed by a few of the major insurance companies - and it has been reported that as many as 200 companies have been hacked in the last few years, its victims their own customers and employees.

But this week, in perhaps the most personal of the recent data hacks, dating website Adult Friend Finder (a service for those looking for casual friendships and sexual hook-ups), has announced that its customer data has also been breached.

Channel 4 News in the UK has reported that the personal information of 3.9 million of AdultFriendFinder.com’s members was discovered in an online forum for hackers, including users’ sexual preferences, e-mail addresses, dates of birth and, in some cases, whether they were looking to cheat on their spouses. The company has notified law enforcement agencies, but said that no financial or password information seems to have been stolen.

AdultFriendFinder is different from traditional dating sites in that the information people provide is much more personal. When a user signs up, the services asks him/ her to detail his interests and, based on those criteria, matches people for sexual encounters. The site, which boasts 64 million members, claims to have "helped millions of people find traditional partners, swinger groups, threesomes, and a variety of other alternative partners."

So customers who joined the website to anonymously post their sexual preferences for hook-ups might now face being exposed to family members, co-workers, bosses, and even spouses or partners, compromising their personal lives.

One controversial hacker took advantage of the now-exposed data to identify over Twitter and personally name four different men who were using the dating site – including one who was married. Because the data is now accessible to anyone, many more people could be publicly shamed as a result.

According to CNN Money: “The breach was carried out by a hacker who goes by the moniker ROR[RG]. In an online hacker forum, he said he blackmailed Adult FriendFinder, telling the site he would expose the data online unless the company paid him $100,000.”

"Until the investigation is completed, it will be difficult to determine with certainty the full scope of the incident, but we will continue to work vigilantly to address this potential issue and will provide updates as we learn more from our investigation," FriendFinder's statement said.

According to The Wall Street Journal, researchers noted that as awareness of the breach spread on Friday May 22nd, more copies of the files were appearing online, meaning more people potentially had access to the data.

Dating in China just got a whole lot harder. The country's internet regulator, the Cyberspace Administration of China, has closed down 128 online dating sites suspected of violating regulations and supplying false information.

The websites were shut down for a lengthy list of allegations, including organized prostitution, disseminating pornographic images, promoting vulgar content, allowing user information to be distributed illegally, and not having complete sets of registration records.

This crackdown comes after the CAC joined forces with several government agencies – including the Ministry of Public Security, the All-China Women's Federation, and the Ministry of Civil Affairs – to conduct a clean-up operation. The offensive began in February, driven primarily by tips from the public. Users are still encouraged to report illegal websites through hotlines, e-mail or mobile apps.

"The operation has achieved a good result. It acted as a deterrent to violators and also had positive impact on the industry's development," said the CAC in a statement. With the way paved, the plan is to create guidelines to ensure dating sites provide fair and honest service.

Other dating services have expressed support, saying the new policies will be good for the industry's long-term development. Wu Linguang, CEO of leading Chinese dating site Jiayuan.com, has come out in favor. The CEOs of Baihe.com and Youyuan.com have also both expressed support for the campaign.

Aside from targeting prostitution and fraudulent practices by service providers, the CAC's crusade tackled the issue of authenticity. Some services were accused of failing to enforce controversial 2012 regulations requiring users to give their real names and national identification numbers upon registration. These sites have been asked to enforce real-name registration to protect users against dishonesty and scammers.

Some believe these are advantageous moves that will help maintain a fair and competitive online market, and improve legal consciousness. Others are less convinced by the ostensible motives.

Chinese internet users have poked fun at the crackdown and questioned its intentions. Critics claim campaigns purporting to safeguard moral standards and related laws are merely a pretext for political censorship.

This is not the first time China has made such a bold move. Last year, in a similar effort to stamp out prostitution and pornography, the country closed nearly 1.8 million social networking and instant messaging accounts.

Not the first time, and likely not the last.

Dating website Plenty of Fish (POF) has been making headlines recently for its longevity and user milestones, as well as its recent disclosure of financial information about the company. But thanks to the new anti-spam law in Canada, POF now has an unwanted headline that they have to deal with - the popular dating website has been ordered to pay $48,000 in fines for its email practices.

Canadians complained of Plenty of Fish’s marketing tactics, which launched an investigation by the Canadian Radio-television and Telecommunications Commission (CRTC) and the Competition Bureau into the company’s practices. Specifically, the agencies examined how the company handles commercial emails to subscribers.

According to the disgruntled users, POF sent them commercial messages without a noticeable “opt out” or “unsubscribe” feature. One of the key requirements in the law is that each commercial email contain an unsubscribe mechanism to allow recipients to opt-out at any time. Also, according to the wording of the law, the unsubscribe feature has to be prominently displayed and “readily performed.”

Plenty of Fish agreed to paying a $48,000 penalty and developing a new compliance program to address its problematic email practices. The compliance program will include training and education for staff, as well as corporate policies and procedures regarding email marketing.

The new anti-spam law has been in effect since last year, but the Canadian agencies have had their challenges in enforcing it because of how vast and pervasive the problem of spamming seems to be. Millions of spam emails are sent every day by spammers from all over the world. Experts argued that the Canadian Radio-television and Telecommunications Commission (CRTC) and the Competition Bureau were not equipped to handle such a pervasive issue.

The agencies however, are proving the critics wrong. The Competition Bureau recently alleged that rental car companies Budget and Avis engaged in false and misleading advertising when they failed to disclose numerous additional fees as part of their car rental promotions, including their email promotions. The Bureau is seeking $30 million in fines and reimbursement to customers. And the CRTC discovered that Compu-Finder, a Quebec-based corporate training company, sent commercial emails without consent and like POF, without proper unsubscribe mechanisms. The company was hit with a $1.1 million penalty.

CRTC notes in a press release that POF did not argue with the fine or the accusation, and hopes that by example, other companies will be inspired to change their own email spamming tactics. As for POF, the company continues to grow its subscriber base despite its setbacks, recently announcing its user base has grown to 100 million worldwide.