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07|25|2008 06:06 pm EDT

Ex-Marchex Employees In Trouble For Setting Up Copycat Sites

by Chad Kettner in Categories: Legal Issues

Marchex (MCHX) has sued two ex-employees for deceptively creating and running competing websites. The pair – Eric Thoreson and Casey Manion – have agreed to pay Marchex $100,000 in legal fees and deactivate their competing sites.

The article by the Puget Sound Business Journal explained that the duo “had copied key Marchex computer code and were operating an internet directories company called Leland Ventures LLC that was ‘a mirror image’ of Marchex‚Äôs business.” While still on the company payroll, Thoreson and Manion owned and operated websites – such as www.500cities.com and www.CollegeStates.com – that were identical to sites controlled by Marchex (presumably OpenList).

Through some research, DomainNameWire.com discovered that Thoreson was the VP of Directory Services at Marchex and Manion was a software engineer.

[via Puget Sound Business Journal]

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