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July 7, 2005 5:11 PM PDT

Kazaa grumpy about adware loss

by John Borland
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You know you're in trouble when your adware fires you. Kazaa parent Sharman Networks issued a grumpy press release today noting that reports of its dissociation from adware maker Claria (formerly Gator) have been misunderstood

Granted, Claria was the one to terminate its relationship with Kazaa, as first reported by my colleague Stefanie Olsen here. But Sharman had already been concerned about Claria's "lack of performance" under a contract in which the oft-maligned advertising software company had agreed to "adhere to high standards," Sharman said.

(Sounds to me like one of those "You can't fire me, I quit," protests.)

Indeed, it seems that none of these companies are comfortable associating with each other these days. Claria may or may not be in the middle of negotiations to be purchased by Microsoft, according to the New York Times. Sharman, meanwhile, has just had its business model given a fat Bronx cheer by the Supreme Court. With everybody's future on tenterhooks, it's no wonder the companies are a little tense.

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