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Old 10-20-2003   #3
Mike AI
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http://www.bayarea.com/mld/mercurynews/new...cal/7058429.htm

Seattle company ordered to pay young Internet entrepreneurs $4.3 million
Associated Press

YORBA LINDA, Calif. - If the court ruling holds up, the Vanderhook brothers stand to become very wealthy Internet entrepreneurs.

But they wonder if they'll recover the innocence they say they lost when they were tossed into the rough-and-tumble world of big business.

Two weeks ago a Superior Court jury in Santa Ana ordered X-10 Wireless Technology to pay the brothers $4.3 million in compensatory damages. On Wednesday, jurors are to begin deliberating how much in punitive damages should be awarded.

The brothers - Tim, 22; Chris, 25; and Russell, 26 - sued X10, accusing the Seattle-based company of failing to pay them $564,000 in commissions and of stealing their proprietary technology and business model.

The brothers created Advertisement Banners.com out of their parents' Yorba Linda home four years ago. It uses a "pop-under" technology that allows advertisers to place their product pitches underneath computer Web sites so that a person sees the ads after they close their browser rather than being confronted by the more annoying "pop-up" announcements while they're looking at something else.

One of their first big clients was X10, whose security-camera ads soon began appearing all over the Internet.

The Vanderhooks' lawyers accused X10 of trying to bully their company out of existence.

"These were young guys who had a dream to start a successful company, but X10 looked at their youth and thought they could wipe them out," said attorney Michael Fitzgerald.

X10 attorney Sean P. O'Connor declined to comment or say whether the company planned to appeal.

"It would be inappropriate for either counsel to discuss this matter until the jury has completed its deliberations," he said.

As for the brothers, they said they decided to file suit not for the money, but because, as Tim Vanderhook put it, "a wrong needed to be righted."

As they pursued the case over the past two years the sons of a former Los Angeles policeman said they had to struggle to keep their company afloat. They employ seven other people.

"When we found out they weren't paying that bill, we were beyond distraught," recalled Chris Vanderhook.

"All of a sudden it stops being a game, when it's real money and real dollar figures and real employees depending on us for their jobs," said his brother Russell
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