Clear Channel Loses Contract Case
December 12, 2007 at 5:28 AM (PT)
A federal jury has ruled that CLEAR CHANNEL COMMUNICATIONS breached a contract with EONSTREAMS INC. for streaming media bandwidth services, awarding the plaintiffs a $40 million judgement.
The KNOXVILLE NEWS-SENTINEL reports that the jury found CLEAR CHANNEL in breach of an OCTOBER 2004 letter of agreement committing CLEAR CHANNEL to a three year deal to use EONSTREAMS ad-insertion software and make EONSTREAMS its "preferred streaming service partner." EONSTREAMS was sold to VITALSTREAM HOLDINGS INC. in MAY 2005 and argued that CLEAR CHANNEL's breach, by inking a deal with a competitor, damaged its valuation. VITALSTREAM was in turn sold to INTERNAP NETWORK SERVICES, and EONSTREAMS is now INTERNAP ADVERTISING SERVICES.