Matt's Blog

TechCrunch is apparently suing Facebook for $25 million in statutory damages. TechCrunch founder Michael Arrington alleges that Facebook has allowed advertisements that use his picture and name as an endorse without his permission. Here’s the details about the “lawsuit”:

In truth, there hasn’t been much in way of actual damages to back up the lawsuit. But where we’ll really be able to stick it to Facebook is the $750 per incident statutory damages. It’s a stretch, but we’re going to argue that every impression of an ad that includes my name or likeness is an “incident.” Based on our calculations and recent comscore data, we estimate the number of impressions to be in the hundreds of thousands at the very least. Multiplying that number by $750 gets us to damages of at least $150 million.

At this point we’re prepared to settle the case for $25 million in Facebook stock (priced at the employee option price, not that ridiculous $15 billion Microsoft valuation), a small fraction of the amount we’ll almost certainly receive if this case goes to trial, plus guaranteed exclusives on all new Facebook product releases. A recent case involving Taster’s Choice, for example, had an award of $15.6 million in damages.

This is actually a pretty good April Fools joke, much better than last year’s (which was also pretty good).

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