AtHomeNet Settles AssociationVoice Lawsuit; Sets Record Straight

SUWANEE, Ga., July 28, 2011 /PRNewswire/ -- Over the past year and half, much has been said about the lawsuit involving AtHomeNet and AssociationVoice ("AV"). Because that litigation was ongoing, AtHomeNet has been unable to respond.  Now, the case has been settled.  AtHomeNet may comment.  

AssociationVoice commenced wildly overstated litigation, seeking the assistance of the court to prohibit AtHomeNet from providing service to its customers.  According to Susan Sanders, CEO of AtHomeNet, "AV's litigation was not successful.  We are able to provide for our customers today every feature and function we were able to provide before the suit was filed. The litigation was expensive and a distraction and has now been settled."  Sanders continued, "Our ability to serve our customers is the highest priority for us." 

This case was about two things: AtHomeNet's purchase of and unauthorized access to an AV community website; and, AV's attempt to force AtHomeNet to remove features from its products—at the expense of AtHomeNet's customers.  AtHomeNet has admitted the unauthorized access was wrong.  In order to defend its clients' right to enjoy the most robust, feature-rich HOA website experience available, however, AtHomeNet chose to defend the case vigorously.  After substantial discovery and a lengthy hearing, AV failed to show AtHomeNet had misappropriated its functions and features. In the end, AV's attempt to force AtHomeNet to remove features from its products was rejected. AtHomeNet's right to innovate and constantly improve its products and services was confirmed.

By way of background, in April 2006, AV ran an ad indicating its websites were capable of integrating with TOPS Software.  AtHomeNet has an exclusive agreement with TOPS Software.  It is not clear how AV was able to "integrate" with TOPS; however, it is now clear that TOPS did not authorize AV to access TOPS proprietary data structures.    

In 2007, AtHomeNet used an assumed name to sign up as a user of AV's website service. (Unlike AtHomeNet, AV does not provide a publicly-available demo of its website service.)  AV had known for 8 months that AtHomeNet had accessed its service.  With that knowledge, AV had chosen not to block AtHomeNet's access.

In August of 2009, TOPS Software announced more stringent data encryption.  This action made AV's alleged "integration" more difficult.  Several months later, in  January 2010, AV filed the now well-publicized action against AtHomeNet.  The litigation did not drive a wedge in the AtHomeNet/TOPS alliance.  As litigation proceeded, AV made numerous attempts to get TOPS to break the exclusivity agreement and even made unsolicited offers to purchase AtHomeNet.

In the litigation, AV's principal claim was that AtHomeNet stole 44 features from AV's website and used them on AtHomeNet's website. AV sought a preliminary injunction to enjoin AtHomeNet from using these features.  During discovery, the AssociationVoice programmer admitted to logging in to the AtHomeNet demo sites and viewing the features and functionality that was offered.  

After a two-day hearing, the court issued its order dated January 6, 2011, stating in part:

Although Plaintiff [AV] initially moved to enjoin AtHomeNet's use of the 44 features indentified in the Complaint, Plaintiff later withdrew 24 features from the requested injunction and conceded that the evidence presented was not sufficient to satisfy its burden with respect to five of the remaining 20 features.  Thus, only 15 features are subject to the motion for preliminary injunction.

Regarding the remaining 15 features, the court found AtHomeNet successfully "demonstrated either the absence of access to that particular feature" or that AtHomeNet was "likely to succeed in rebutting the presumption of copying with evidence of their independent development of the feature."   In short, after months of discovery, thousands of pages of document production, numerous depositions, and a two-day hearing, the court found that AssociationVoice was not entitled to a preliminary injunction on any of the 44 features.  

The court entered a lesser preliminary injunction prohibiting AtHomeNet from accessing AV's website without AV's consent and prohibiting AtHomeNet from using certain material for marketing.  See: Preliminary Injunction, Case 1:10-cv-00109-CMA-MEH Document 183, Filed 01/06/11, USDC Colorado.

Having secured its right to maintain the full functionality of its product offerings, AtHomeNet settled the case with AV on July 13, 2011. AtHomeNet agreed to make the preliminary injunction permanent.  This was done to avoid the expense and distraction of trial.  See: Judgment, Case 1:10-cv-00109-CMA-MEH, Document 205, Filed 07/20/11 USDC Colorado. In the Judgment to which AV's recent press release refers, the Court specifically noted that nothing in the permanent injunction shall prevent AtHomeNet from independently developing features or functions or from using features or functions AtHomeNet has independently developed. 

The settlement does not impair services provided to AtHomeNet's current and future clients.  The settlement does allow AtHomeNet to devote its full attention to maintaining and improving its service. AtHomeNet wishes to thank its many clients and business partners for their support and assistance and looks forward to providing the best community website experience available anywhere.  Sanders concluded, "We made a mistake.  We have admitted that mistake and elect to continue serving our customers without the distraction of the suit that was settled weeks ago.  We regret that AV has, again, chosen to highlight the faint embers of its litigation, which, as far as our ability to serve our customers is concerned, crashed and burned."

About AtHomeNet, Inc.

AtHomeNet® is the nation's premier provider of customized, affordable websites for communities and Professional Association Management Firms. The company was founded in 1998 by Jeff and Susan Sanders. With their HOA websites now being used in over 1.8 million homes and 6 countries, AtHomeNet continues to grow as a company and enhance their services in the ever-expanding world of online technology.  For more information on AtHomeNet web services please visit www.AtHomeNet.com or contact Heather McGowen at [email protected] or call 1-800-556-7852.

SOURCE AtHomeNet, Inc.