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New Articles

Yahoo to Add More Content to Search Results:

Top 10 tips for making money online by using affiliate programs.

Yahoo Begins Rolling Out Its Own Search Technology: Internet media company Yahoo Inc. on Wednesday said it was switching to its own Web search technology and dropping its use of competitor Google Inc.

MSN Search Beta Goes Live: Microsoft’s MSN division has launched a sneak peek beta test of its new MSN Search Engine.

Yahoo to Drop Google as Main Search Engine, Report Says: Yahoo Inc. is expected to drop Google as the primary search technology on its site within a few months, the Wall Street Journal said on Tuesday.

Google Expected to Go Public in 2004: Google, the world's most popular Internet search engine, is widely expected to make its stock market debut during the first half of 2004, creating a level of excitement rarely seen since the dot-com gold rush.

Google Asks Court for Ruling on Trademarks: (Reuters) - No. 1 Web search service Google Inc. has asked a court to rule on whether its keyword searches infringe company trademarks, a move that lawyers said could set the stage for a landmark ruling over online advertising...more here!

LookSmart to Lose Key Microsoft Deal: Microsoft Corp.'s MSN Internet division will end its licensing agreement with LookSmart Ltd. in January 2004, the Web search company said on Monday, cutting off LookSmart from its biggest client...more here!

VeriSign to Halt New Service as Demanded: 10/06/03 Web address provider VeriSign Inc. on Friday agreed to suspend a controversial new service that steers mistaken Web searches to its own page, agreeing to a demand by the body that oversees Internet policy...more here!

LookSmart Looking to Trump Yahoo! Move: 10-02-03 Online search engine maker LookSmart Ltd. is rolling out an advertising service similar to one being bought for $1.7 billion by Yahoo! Inc., betting the takeover will alienate some major customers...more here!

Google Buys Web Search Company Kaltix Corp.: Web search company Google Inc. said it bought Kaltix Corp., a start-up that builds the personalized and context-sensitive search tools the industry sees as part of its next wave of product offerings...more here!

Internet Typo Service Sparks Hot Debate: When David Fitzpatrick's software for tracking and analyzing junk e-mail didn't work correctly, the Web designer assumed he had made programming mistakes and spent hours trying to fix them...more here!

Amazon.com Invades Google's Turf: Online retailing giant Amazon.com Inc. is betting it can muscle into one of e-commerce's most profitable niches — search engines...more here!

Microsoft Bets on New Search Technology: - Microsoft Corp. may be the most recognized software company on the planet, but when it comes to searching the Internet, people are much more likely to "Google it." Microsoft wants to change that, and it's betting millions that someday it will be as well known for search as Google is...more here!

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New Web Domain Names Get Preliminary Nod: Two new Internet domain names — ".post" and ".travel" — could appear online as early as next year as the Internet's key oversight board announced preliminary approval.

The Internet Corporation for Assigned Names and Numbers, in advancing the applications for postal services and the travel industry, said they were still considering eight other proposals including ".asia," ".jobs," and ".xxx." Separately, ".eu" for the European Union also is in the works.

ICANN said the decision on ".post" and ".travel" had less to do with relative merit and was primarily based on the level of technical and commercial details their sponsors were able to quickly provide.

Negotiations will now begin on creating and running the domain names. The process could take months, though officials warned that there was no guarantee the domains would ultimately be accepted.

There are currently about 250 domain names, mostly for specific countries like ".fr" for France.

In 2000, ICANN approved seven new domain names for global use, the first major additions since the Domain Name System was created in the 1980s.

But the new names, including ".biz," ".info" and ".museum," aren't as widely known or used as the more traditional ".com" and ".org." In addition, some Internet applications reject the new names entirely because they were programmed to recognize only two- or three-character suffixes.

The two names preliminarily OKed are different from most existing names because they would be set aside for specific industries and interest groups. Applicants paid $45,000 apiece earlier this year to have their proposals considered.

The Universal Postal Union in Bern, Switzerland, wants ".post" for national postal services, local post offices, business partners and stamp collectors around the world. Private companies that provide postal services, such as Federal Express and UPS, also would be eligible.

The Swiss postal union said a ".post" domain could ultimately link various electronic postal services now being set up at the national level, the way a British postal worker can deliver physical mail sent from the United States with U.S. postage. The organization envisions establishing up to 650,000 virtual post offices to let users access their local postal functions from anywhere in the world.

The Travel Partnership Corp., a New York-based trade group, seeks ".travel" for travel agents, airlines, bed and breakfast operators, tourism bureaus and others in the travel industry. It sees hotels, resorts and restaurants as among the suffix's biggest users. The organization believes having a distinct suffix will encourage more businesses in the industry to develop or expand their Web presence. (AP)


 

Google Puts Froogle on Site, Tests Personalization: Google Inc., the No. 1 Web search engine widely expected to go public this year, on Monday put its Froogle shopping tool on its main Web site and said it is testing new services to deliver personalized search results.

"Today, Google takes the first step in providing personal search results based on users' preferences," Google co-founder and President Larry Page said in a statement.

Google and rivals such as Yahoo Inc. and Microsoft Corp. which are working to knock Google from its pole position, are regularly rolling out new search services aimed at winning the loyalty of Web users. Yahoo and Microsoft, through its MSN Internet division, already offer price comparisons and other tools for online shoppers.

Google's Froogle shopping feature helps users sort items such as digital cameras or Apple iPod music players by price. The service, which for months had been tested in Google Labs (http://labs.google.com/), also got a redesigned home page and search results page.

Yahoo on Friday announced plans to buy Kelkoo SA, a top European price comparison shopping search engine, for about $575 million.

"Yahoo will be one step ahead of Google with this acquisition, making this in part also a defensive move," PiperJaffray analyst Safa Rashtchy said in a research note on Monday.

Analysts expect the Kelkoo acquisition to strengthen both Yahoo's European e-commerce position and its relationship with advertisers.

Mountain View, California-based Google also said it has begun testing Google Web Alerts and Personalized Search in Google Labs.

Its Web Alerts service automatically e-mails users when there is new information on the Web about any topic they say is of interest.

Personalized Search allows users to create a profile and to use a sliding control bar at the top left of the results page to move personalized results up higher in the rankings.

Yahoo and Microsoft each have identified personalized search capabilities as a top priority.


 

Yahoo to Add More Content to Search Results: Internet media company Yahoo Inc. said that it would enhance its search services by tapping into richer content such as audio, video and reference information.

Yahoo, which is beefing up its search services to compete against Google Inc. and Microsoft Corp.'s MSN Internet division, said in February that it was starting to make a switch to its own Web search technology.

Search users at Yahoo's Web site will be able to access rich content, such as the audio files of National Public Radio, the U.S. Library of Congress the New York Public Library and Supreme Court audio recordings available through a Northwestern University project.

"We think this will help change how people think about search," said Tim Cadogan, vice president of Search at Yahoo.

The new initiative to include richer media in search results, which Yahoo calls its Content Acquisition Program, is aimed at creating closer links between Yahoo's search engine and digital audio and visual media, Cadogan said.

Both commercial and non-commercial content providers can submit Web pages that are added to Yahoo's search index, its database of searchable Web sites.

Non-commercial organizations can submit their Web pages and digital content for inclusion in Yahoo search results for free, while commercial content providers pay a fee to include their content in search results.

The widely anticipated announcement marks the unwinding of a long-term relationship between Yahoo, operator of the world's most-visited Internet properties, and Google, the No. 1 Web search provider.

Yahoo has recently made major investments in the sector with acquisitions of search provider Inktomi and Overture Services, a key Web-search advertising company.

Microsoft is also throwing its vast resources behind a project to build search technology of its own.

 


 

Yahoo Begins Rolling Out Its Own Search Technology: Internet media company Yahoo Inc. on Wednesday said it was switching to its own Web search technology and dropping its use of competitor Google Inc.

The widely anticipated announcement marks the unwinding of a long-term relationship between Yahoo, operator of the world's most-visited Internet properties, and Google, the No. 1 Web search provider.

The friendly partnership evolved into an intense rivalry as Google's popularity soared and Web-search advertising revenue, which traffic providers like Yahoo share with search companies, boomed.

"The transition has obviously been underway for many months. It doesn't come as a surprise," said Jonathan Rosenberg, vice president of product management at Google, which is expected to go public later this year.

Yahoo recently has made major investments in the sector with acquisitions of search provider Inktomi and Overture Services, a key Web-search advertising company.

Its conversion project began late Tuesday night with the U.S. Yahoo site and will continue over the next several weeks as the Sunnyvale, California-based company moves its international properties to its own search product.

Upon completion of the transition, Yahoo will power nearly half of all Web search queries in the United States through its own sites and those of partners like Microsoft Corp.'s MSN Internet service, Jeff Weiner, senior vice president of Yahoo search and marketplace, said.

Yahoo's global reach, combined with its technology, position Yahoo to "change the game in search," Weiner said.

Meanwhile, Microsoft is throwing its vast resources behind a project to build search technology of its own.

Google will continue to focus on providing the industry's best search and advertising technology, Rosenberg said.


 

MSN Search Beta Goes Live: Microsoft’s MSN division has launched a sneak peek beta test of its new MSN Search Engine. The new MSN Search is a full speed ahead effort for Microsoft to catch Google and Yahoo in the search engine race. Last week Microsoft’s Bill Gates commented that Google has blown away Microsoft in the realm of search, confirming that Google “kicked our butts” in a statement given at the World Economic Forum.

The new MSN Search Beta Test can be previewed at http://beta.search.msn.com

At first glance MSN more or less uses the same style for their layout, but now clearly differentiates the difference between organic search results and paid search advertising. A plus for MSN.

If you search for “online marketing” on the current MSN Search you’ll find a mixture of Looksmart driven Web Directory listings, Overture Sponsored Link ads, and Featured Sites… all peppered over the organic Inktomi results...full story here searchenginejournal.com


 

Google Developing Ad Service for E-Mail -Sources: (Reuters) - Google Inc., which dominates the market for Web search, is developing a service that could dramatically extend the reach of its lucrative keyword-based advertising by linking such ads to e-mail, people familiar with the matter said on Friday.

Privately held Google, which is expected to go public later this year, faces rising competition in its core search business from e-mail providers including Yahoo Inc. and MSN, Microsoft Corp.'s Internet unit.

Adding an e-mail service would provide a potential boost to Google as its technology lead in the search market seems destined to narrow and it prepares to answer to growth-hungry shareholders, analysts said.

The Mountain View, California, company, which has recently made several e-mail related acquisitions, is working on a way to serve advertising to an e-mail at the moment it is opened, people close to the company said.

"I'm sure Google is getting more and more concerned about locking in users. It wouldn't surprise me if they did something very sophisticated with e-mail," said Danny Sullivan, editor of SearchEngineWatch.com, who tracks the industry.

By moving into e-mail -- the Web's most-used program -- Google would open up a huge new market for its lucrative "sponsored links" advertising business that delivers ads tied to keywords in Web searches or on content pages, analysts said.

Offering its own branded e-mail -- whether for free or with enhanced services like spam filtering -- would also enable Google to tie users more closely to its search site and to steal customers from rivals, they said.

In an e-mail response to questions from Reuters, spokesman David Krane said, "Google has a number of projects in the works to test monetization in various scenarios.

"In fact, Google's AdSense contextual ads are already used in a number of e-mail newsletters," he said.

GOING PORTAL?

Google has for years said it would not turn its site into a full-service Internet portal like Yahoo or MSN. However, since it opened in 1998, Google has added portal-style discussion groups and is testing a comparison shopping site called Froogle, as well as a news site.

Google late last year purchased rival Sprinks, which had technology to deliver ads to e-mail as the messages were opened. Such real-time ad serving is important because it keeps ads fresh and insures that Google will not be giving away free ads or delivering ads nobody will see, industry participants said.

Kanoodle, a small privately held search company, in the coming weeks will roll out its own e-mail advertising product as part of its deal with CBS MarketWatch.com, Lance Podell, Kanoodle's president of search and content, told Reuters.

Under that deal, "sponsored link" ads will be served to MarketWatch's opt-in subscriber e-mails, including newsletters.

Google already knows how to deliver its sponsored link ads -- which are in the form of Web links and appear on the perimeter of Web pages -- to e-mail newsletters and content sites.

Furthermore, Google last year purchased an e-mail management software maker and in 2001 registered the domain name googlemail.com.

Some in Silicon Valley also believe Google could be preparing to launch free e-mail to compete with offerings from Yahoo and MSN's Hotmail.

"If they were to go the e-mail route they'd have to provide an offering that competes with free (e-mail). Anti-spam is one form of strong differentiation," said Jim Pitkow, chief executive of Moreover Technologies, whose personalized search company Outride was acquired by Google in 2001. (Additional reporting by Reed Stevenson in Seattle)


Yahoo to Drop Google as Main Search Engine, Report Says: Yahoo Inc. is expected to drop Google as the primary search technology on its site within a few months, the Wall Street Journal said on Tuesday.

According to the paper, some marketing firms say they have been told Yahoo will switch from Google to its own technology as early as the first quarter.

Sunnyvale, California-based Yahoo was widely expected to dump Google in part because it spent more than $2 billion last year to buy search technology through its acquisitions of Inktomi Corp. and Overture Services Inc.

The expected move comes as Google, the No. 1 Web search service, plans to go public this spring.

Company officials could not immediately be reached for comment.


Google Expected to Go Public in 2004: Google, the world's most popular Internet search engine, is widely expected to make its stock market debut during the first half of 2004, creating a level of excitement rarely seen since the dot-com gold rush.

The move may raise millions for the company and could spark enough excitement for a general IPO recovery, experts say. The sale could also raise as much as $4 billion, making it the biggest IPO since CIT Group Inc.'s $4.87 billion deal in July 2002.

A spokesman for Google did not return phone calls Monday.

Many experts believe a vibrant IPO market would spawn more companies able to use their publicly traded stocks as a currency to buy other businesses and attract more talented employees.

From January 2001 through Dec. 9 of this year, there were 238 IPOs, according to IPOfinancial.com, which tracks the market. From 1998 through 2000 there were a total 1,250 IPOs, according to IPOfinancial.com.

A deal like Google's could be enough to help snap the IPO lull, said Michael Moe, chief executive of ThinkEquity, a high-tech investment bank in San Francisco.

"A lot of investors put their hands on a hot oven and got burned so they are being very careful about going close to the oven again," Moe said. "Google's IPO could be the catalyst that helps bring people back."

Other market observers are less sanguine, characterizing Google as a rare jewel amid the high-tech rubble.

High-tech companies simply don't hold the same allure as they did before the excruciating pain the dot-com crash caused investors, said David Menlow, IPOfinancial's president.

Companies in staid industries such as freighting, steel and finance might even be more appealing to cautious investors than unproven tech companies with greater growth potential.

"Investors are still twitchy," Menlow said. "They want to see a certain crispness from companies selling IPOs. They are no longer interested in companies with some esoteric business model."

According to ComScore Networks, the California-based Google is the most-used in the world for Internet searches. A number of companies, including Time Warner Inc's American Online, use Google's search results for their Web sites.



Google Asks Court for Ruling on Trademarks: (Reuters) - No. 1 Web search service Google Inc. has asked a court to rule on whether its keyword searches infringe company trademarks, a move that lawyers said could set the stage for a landmark ruling over online advertising.

Some companies have complained that Google allows competitors to use their trademarked names, or portions of those names, to trigger advertisements that are linked to the Web sites of those rivals. American Blind & Wallpaper Factory Inc. has demanded Google stop selling keyword phrases it says include or resemble American Blind trademarks.

Privately held Google, expected go public early next year in a much anticipated stock offering, last week asked a U.S. District Court judge in San Jose, California to decide whether such keyword advertisements could violate trademark laws.

"It's to Google's advantage to get some guidance from the U.S. courts as to what the permissible bounds are. Uncertainty is not good for them," said Thomas Zellerbach, an intellectual property partner in Orrick, Herrington & Sutcliffe's Silicon Valley office.

Google, based in Mountain View, California, gets most of its annual revenues -- estimated by analysts and published reports to be between $700 million and $1 billion this year -- from keyword ads.

"This is still relatively uncharted ground for the courts," said Zellerbach, who is not involved in the case.

He said it is up to American Blind to show the court that the keywords Google is allowing advertisers to use, do not have an ordinary meaning.

Google's attorney Michael Page, of Keker & Van Nest LLP in San Francisco, declined comment on the pending litigation. Attorneys for American Blind did not immediately return calls seeking comment.

Amercian Blind has asked Google to remove keywords ranging from "American Blind Factory" to simply "decorate today" from existing advertising campaigns. It also wants Google to remove from its searches the advertisers who have paid for links to their own Web sites from the disputed keywords.

American Blind's letters cited as precedent a judgment it received from the U.S. District Court for Eastern Michigan, which barred defendants from using American Blind's trademarks, service marks or the word "American" in any variation or combination with the word "blinds" either singular or plural.

After talks with American blind, Google stopped allowing the company's competitors to use its trademarks to trigger ads.

Nevertheless, Google did not block variant terms such as "American blind," saying they are descriptive terms that other advertisers have the right to use.

Google and other search companies have said they adhere to fair-use trademark practices.

When the words "American Blind" were typed into the Google search engine on Thursday afternoon, four ads, or "sponsored links," appeared on the right-hand side of the results page from companies that sell blinds, shades and wallpaper, or offer discounts and price comparisons.

In October, a civil court in Nanterre, France, ordered Google to pay a fine of 75,000 euros for allowing advertisers to link text Internet ads to trademarked search terms. The French court also ordered Google to stop the practice, which has reaped millions of dollars in profits for companies like Google and Overture Services Inc. which pioneered search advertising and is now owned by Internet media company Yahoo Inc.

Elsewhere, Louis Vuitton, a unit of LVMH Moet Hennessy Louis Vuitton SA of France, sued Google and its French subsidiary in August for trademark infringement.


LookSmart to Lose Key Microsoft Deal: Microsoft Corp.'s MSN Internet division will end its licensing agreement with LookSmart Ltd. in January 2004, the Web search company said on Monday, cutting off LookSmart from its biggest client.

The move by the world's largest software maker is the latest action in an intense war for dominance of the highly profitable Internet search sector, now led by privately held Google Inc. but coveted by such technology giants as Microsoft and Yahoo Inc.

San Francisco, California-based LookSmart's shares dropped by 58 percent after the announcement to $1.28 from the Nasdaq close of $3.02.

LookSmart said Microsoft chose not to renew its distribution and licensing deal with the company, which is best known for its paid-listing services that allow advertisers to pay to have more of their Web pages included in Internet search results.

As a result, LookSmart stands to lose about two-thirds of its revenue, the company said.

LookSmart in July forecast total revenue of $147 million to $152 million for 2003. During a conference call with analysts on Monday, the company said it was not changing that guidance.

"We were surprised by this outcome," said Jason Kellerman, LookSmart's chief executive, adding that the relationship with MSN accounted for "approximately 65 percent of (Q2) listings revenues, and all of LookSmart's licensing revenue in the second quarter of 2003."

LookSmart's second-quarter listing revenue was $34.6 million and its licensing revenue was $3.8 million.

Microsoft, which recently outlined plans to develop its own search technology, said its MSN division found it could boost the relevancy of search results by scrapping the deal with LookSmart.

"At the end of the day we have to focus on what's best for our customers," said Lisa Gurry, MSN's lead product manager.

LookSmart provides technology that allows advertisers to increase the chance that they will show up in search results.

Its after-hours share price drop knocked nearly $180 million from LookSmart's market capitalization.

"Net-net it's a negative for the company. (MSN) is a huge partner for them. They'll have to look for ways to replenish that revenue and it won't be easy," said Richard Fetyko, an analyst at Kaufman Brothers, an investment bank and brokerage firm. Kaufman Brothers does not have an investing banking relationship with LookSmart and Fetyko does not own shares.

Fetyko said LookSmart has been in preliminary talks with potential partners such as Internet portal America Online and Web search company Ask Jeeves Inc.

"They will obviously accelerate those efforts," he said.

MSN uses LookSmart's Directory products for the majority of its search results at MSN Search, then backfills with crawler results from search supplier Inktomi, Fetyko wrote in a recent report.

Kellerman said LookSmart just renewed its own distribution deal with Inktomi, which was recently purchased by MSN rival Yahoo.

"There's no indication of any change in that relationship," Kellerman said.

Companies such as LookSmart and Overture Services Inc., which will be acquired by Yahoo, provide paid search services that allow advertisers to insert advertisements alongside search results. MSN has an ongoing deal, which was extended in July, with Overture that lasts until December 2004.

This is the email sent to LookSmart customer:

October 6, 2003Dear valued customer,
This letter is to inform you that there will be changes to your LookListings traffic in 2004, as a result of recent developments within our search distribution partner network. It is important to understand that these changes will not affect your LookSmart traffic in Q4 2003. It is also important to note that these changes will not affect your keyword-targeted Sponsored Listings traffic.

Beginning in January 2004, MSN will be removing the Web Directory Sites layer from its search results, and will no longer have a direct partnership agreement with LookSmart. Your LookListings may still appear on MSN through our distribution partnership with Inktomi, but your paid inclusion traffic will be reduced at that time. Your LookListings will also continue to provide traffic from more than 85 other LookSmart partners such as Lycos, About.com, Road Runner, InfoSpace and CNET. We are negotiating with other portals and ISPs for additional distribution of LookListings, and will let you know as new properties are added to our network.

While LookSmart's paid inclusion traffic will decrease in Q1 2004, we are working to grow our presence in the pay-for-placement market.

We recently launched LookSmart Sponsored Listings, our first bid-for-placement keyword product. Sponsored Listings is fully integrated with LookListings, so you can use your existing login and password, get started with just a few simple clicks, and monitor the performance of all your paid inclusion and pay-for-placement listings together in the LookSmart Advertiser Center. Click here to learn more about Sponsored Listings or to add them to your campaign.

On behalf of LookSmart staff and management, I would like to thank you in advance for your continued support.

Regards,
Jason Kellerman,
Chief Executive Officer,
LookSmart


VeriSign to Halt New Service as Demanded: (Reuters) - Web address provider VeriSign Inc. on Friday agreed to suspend a controversial new service that steers mistaken Web searches to its own page, agreeing to a demand by the body that oversees Internet policy.

Earlier on Friday, the Internet Corporation for Assigned Names and Numbers issued a statement insisting that VeriSign halt its SiteFinder service and restore the ".com" and ".net" Web domains to the way they were before Sept. 15, when VeriSign began the service.

ICANN gave VeriSign until 6 p.m. PDT to comply with the request or face sanctions for violating its contract with ICANN.

"We will accede to the request while we explore all of our options," VeriSign spokesman Tom Galvin told Reuters.

ICANN spokeswoman Mary Hewitt said the organization was "obviously pleased" with VeriSign's response.

VeriSign had requested for an extension of a couple of days "so the technical community would have time to implement the reversal," but ICANN rejected that, Galvin said.

VeriSign has defended its move, saying it was providing a convenience to Internet users who previously received an error message. The SiteFinder service directs searches for Web addresses that have been mistyped or not registered to a page that includes pay-for-placement topic links.

But Internet users, network administrators and rivals have cried foul, claiming VeriSign overstepped its authority.

"There have been widespread expressions of concern about the impact of these changes on the security and stability of the Internet," ICANN said in its statement.

SiteFinder is rendering spam filters ineffective, adversely affecting other automated Web tools and services, creating a single point of failure "that is likely to be attractive to deliberate attacks" and raising serious privacy issues, according to ICANN.

VeriSign's activation of SiteFinder is "not consistent" with its contract to serve as the main database keeper of all addresses in the ".com" and ".net" domains, ICANN added.

With the service, VeriSign is violating the contract's code of conduct and equal access obligations and failing to act as a neutral registry service provider, among other things, ICANN said.

Galvin said ICANN was using "anecdotal and isolated issues to attempt to regulate non-registry services, but in the interests of further working with the technical community, we will temporarily suspend SiteFinder."

Thwarting efforts such as providing new services will hinder innovation on the Internet, he added.

VeriSign's service has spawned at least three lawsuits against the Mountain View, California-based company.

ICANN previously asked VeriSign to suspend the service, but VeriSign instead said it would form an advisory panel.

VeriSign is not the first registry to test or implement a so-called "redirect" service. But its service impacts the majority of Web searches, as opposed to addresses ending in other domains, such as .biz.

VeriSign's SiteFinder service has been used more than 40 million times by Internet users in just over two weeks, Galvin said.


LookSmart Looking to Trump Yahoo! Move: 10-02-03 Online search engine maker LookSmart Ltd. is rolling out an advertising service similar to one being bought for $1.7 billion by Yahoo! Inc., betting the takeover will alienate some major customers.

San Francisco-based LookSmart is trying to sell a search index that bases its rankings on how much advertisers will pay for the top spots — an idea pioneered by Pasadena-based Overture Services and copied successfully by Google.

The concept — known as "pay for performance" — has been a hit among advertisers and a boon for scores of Web sites that collect commissions when visitors click on the paid results displayed on their pages.

Sunnyvale-based Yahoo has been one of the biggest beneficiaries in a market expected to hit $2 billion in revenue this year. Hoping to get an even bigger piece of the pie, Yahoo decided to buy Overture, the source of the advertising links displayed in its search engine results.

The takeover eliminates one of Overture's big drawing cards. Because Overture didn't try to attract online traffic, many Web sites preferred its service to Google, which has established itself as one of the Internet's most popular destinations.

LookSmart reasons many Web sites currently using Overture's advertising service will be shopping for alternatives rather than help Yahoo make more money.

"The need has come along for someone to do what Overture did," said Dakota Sullivan, LookSmart's vice president. "We want to be the new Switzerland in this space."

Yahoo declined to comment about LookSmart's push into the pay-for-performance market. The company plans to complete the Overture takeover before the end of the year.

Mountain View-based Google also declined to comment on LookSmart's plans.

LookSmart already has signed contracts to distribute its pay-for-performance results to several popular Web sites, including Cent, Road Runner and InfoSpace.

The company hopes to lure much bigger customers, such as Microsoft's MSN.com, which relies upon Overture for its advertising results. MSN already incorporates a Web directory compiled by LookSmart in its search engine.

MSN is always on the lookout for ways to improve its search engine, but has no immediate plans to drop Overture, said Karen Redetzki, MSN product manager.

LookSmart is much smaller than Overture and less profitable, too.

Overture had 95,000 advertisers in its search index as of June 30. LookSmart boasts 30,000 advertisers who pay the company to conduct more comprehensive and frequent searches of their Web sites.

LookSmart didn't make its first profit until late last year while Overture has been profitable for nearly two years. LookSmart endured nearly $220 million in cumulative losses before recording profits totaling $37 million during its past three quarters.

Investors haven't been too impressed with LookSmart's performance, although the company's stock has rebounded from a 52-week low of 76 cents. LookSmart's shares gained a penny Wednesday to close at $3.15 on the Nasdaq Stock Exchange. The stock has traded as high as $4.80 in the past year.


Google Buys Web Search Company Kaltix Corp.: (Reuters) - Web search company Google Inc. on Tuesday said it bought Kaltix Corp., a start-up that builds the personalized and context-sensitive search tools the industry sees as part of its next wave of product offerings.

Financial terms of the deal were not disclosed.

Kaltix, of Palo Alto, California, was formed in June this year and its technology aims to make it easier and faster for people to find information on the Web, Google said in a statement.

A Google spokesman declined additional comment.

In general, Web search personalization works to tailor search results to a specific individual's interests and needs, which allows Google and other search providers to deliver the targeted advertising they rely on for revenues.

Kaltix was founded by three members of a Stanford University research group that focuses on Web search.

Stanford had an equity stake in Kaltix and recently granted the company an exclusive license for personalized Web search technology, Katharine Ku, director of Stanford's Office of Technology Licensing, told Reuters.

Ku would not disclose how much money Stanford put into the start-up or the financial terms of the Kaltix licensing deal.

Mountain View, California-based Google, launched in 1998 by former Stanford University graduate students Larry Page and Sergey Brin, operates the most popular Web search destination in the United States.

But privately held Google faces increasing competition from Yahoo Inc. and Microsoft Corp. which are both making significant investments in Web search.


Internet Typo Service Sparks Hot Debate: (AP) When David Fitzpatrick's software for tracking and analyzing junk e-mail didn't work correctly, the Web designer assumed he had made programming mistakes and spent hours trying to fix them.

Then he discovered it wasn't his skills that were faulty, but the Internet that essentially broke. Elsewhere, more spam slipped through, printers misbehaved and cell phones got unusual Web traffic.

"I'm upset about this because it's cost us time and money," said Fitzpatrick, who runs Lone Star Interactive in Arlington, Texas, and tracks spam on the side.

The culprit was VeriSign Inc., which two weeks ago launched a new service for guiding Internet users who mistype Web addresses. Side effects from the service have prompted a fierce debate over who's in charge of the Internet.

"This is the first case I know where somebody that big has caused that kind of failure," said David Farber, an influential technologist formerly with the Federal Communications Commission (news - web sites). "If that becomes the standard, things will break endlessly."

With little warning or fanfare, VeriSign introduced its Site Finder service on Sept. 15. Web surfers who enter addresses that don't exist now get suggestions on where they might have wanted to go.

Normally, such innovation is encouraged and has led to such breakthroughs as the World Wide Web itself in 1990. In fact, America Online Inc. and Microsoft Corp., among others, have been offering similar services.

But VeriSign is unique because it is master-keeper of names ending in ".com" and ".net." Its actions have more far-reaching effects on almost everyone online.

While millions of people have used Site Finder without problems, some software depend on getting error messages — not a redirection — when addresses don't exist.

VeriSign spokesman Tom Galvin said the company has convened a panel of outside technical experts to suggest changes. Normally, however, such discussions take place in advance.

"You're playing with an engine change while the plane's in flight," said Vint Cerf, co-inventor of the Internet's basic communications protocols.

Fitzpatrick, for one, found his software capturing VeriSign's search site, instead of indicating that a spammer had faked a Web address. Junk mail filters that perform such checks also failed, allowing more spam through.

The Internet Architecture Board, a committee of Internet engineers, found other mishaps. Rival search services such as Microsoft's stopped working. Printer and other network misconfigurations, once benign, became fatal. Mobile Web services got swamped with more data than the normal "no such name" response, potentially generating higher phone bills.

Business rivals, meanwhile, complained that VeriSign was making money off its monopoly on the ".com" and ".net" directories, because the company shares revenue with search engines that power Site Finder. At least two federal lawsuits have been filed.

A security committee of the Internet Corporation for Assigned Names and Numbers, which oversees domain names, plans to convene a meeting Oct. 7. Meanwhile, ICANN asked VeriSign to suspend its service.

VeriSign declined, saying it would be premature.

Cerf, ICANN's chairman, said the organization was "evaluating a number of avenues."

"I am very disappointed to see that VeriSign seems so insensitive to the widespread problems their modification is having," Cerf said.

While discussions continue, outsiders see a stalemate. A report from the security committee took a full week, a delay committee chairman Steve Crocker partly attributed to Hurricane Isabel.

"It took ICANN longer to come up with the requests to suspend than it took the entire 9th Circuit to review the election process," said former ICANN board member Karl Auerbach, referring to a court decision to clear California's recall.

Now long-time techies, including Auerbach, are suggesting a more formal regulation of the Internet to replace the ad-hoc, consensus-based structure that grew out of the tech community's historic self-governing efforts.

"The same rules really can't apply anymore, now that the Internet really, really matters in commerce, in government," said Lauren Weinstein, co-founder of People For Internet Responsibility.

VeriSign welcomes a rethinking of how the Net is run. Galvin said the company has long been frustrated with how long it takes to decide on its initiatives, including domain names that include foreign characters.

"The Internet has been used in many innovative ways, but the Internet itself has not been innovated much," Galvin said. "The bigger issue beyond Site Finder is, `Are Internet operators going to be able to innovate the Internet and launch new services?' That question will also answer how much investment is made into the infrastructure."

Whether VeriSign did anything wrong is debatable. Voluntary Internet standards permit "wildcards," the mechanism VeriSign employs to redirect mistyped addresses. But technical experts say those standards were never meant to apply so broadly.

VeriSign points out that other suffixes have used wildcards before, albeit on a smaller scale. Operators of ".biz" and ".us" tested a similar service in May. Typing in a nonexistent address for ".cc" and ".ws" gets you an ad for registering it — in the case of ".cc," through eNIC Corp., a VeriSign subsidiary.

How the matter gets settled will have broad implications.

"If ICANN insists that this is bad and if it is not able to enforce it," said Harald Alvestrand, chairman of the standards-setting Internet Engineering Task Force, "it has established the principle that domain name operators can do anything."


 

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