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InsWeb alleges patent violation

Published 12:00 am PDT Wednesday, March 12, 2008
Story appeared in BUSINESS section, Page D2

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The tit-for-tat battle between former business partners InsWeb and Autobytel escalated Tuesday when InsWeb announced it was suing Autobytel and two other companies for patent infringement.

In a lawsuit filed in U.S. District Court in San Diego, Sacramento-based InsWeb alleges Autobytel owned a company that stole its patent, called WebControl, that facilitates the tracking and logging of Internet leads and sales for car dealerships.

In addition to Irvine-based Autobytel, InsWeb filed suit against Autobytel I Corp., formerly known as AVV Inc., and Dominion Enterprises, which now owns AVV. AVV stole InsWeb's technology while it was owned by Autobytel, the suit alleges.

In a statement, InsWeb, whose Web site allows users to compare and purchase auto, home and life insurance policies, acknowledged that its chances of winning may be limited.

"InsWeb has not previously asserted this patent against any third party and the outcome … is uncertain," it said.

Last month InsWeb severed its relationship with Autobytel, a car-shopping Web site, in response to a patent-infringement suit that Autobytel had filed against InsWeb in December.

– Mark Melnicoe


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