• by Paul Gough , August 16, 2002

A company that devised a process that eases advertising on multiple newspaper Web sites has received a patent for the system.

Global Networks Inc. of New York announced recently by way of ads in The Wall Street Journal and Editor & Publisher that it had received patent No. 6, 401,075, “Methods of Placing, Purchasing and Monitoring Internet Advertising.” The patent gives Global Networks exclusive rights to the process that can take an ad, modify it automatically to fit specifications in any of 1,000 newspapers nationwide, and then serve it to the newspapers and manage all aspects of the campaign, including billing.

“We do it all electronically, with one motion, with one creative, reconfigured in flight,” said Jim Mason, president and CEO.

The awarding of the patent capped a two-year effort that cost Global Networks at least $200,000 in research and legal costs. The patent protects Global Network’s unique, proprietary method to create a number of ads from one creative.

Since the patent was awarded earlier this summer, the company has been notifying the newspaper industry that it had the patent and offered licensing arrangements for those companies who still wish to use it. The patent allows Global Networks the right to serve ads via computer to online newspaper sites for 20 years, until January 2020.

Mason said the notifications, both in the business and trade press and also by letters to newspaper publishers and advertising agencies, are a legal step to notify them that they may unknowingly be in violation of Global Network’s patent. The next step, for those interested, would be to create a licensing arrangement with Global Network. Among the plans is to charge a licensing fee monthly.

While the company will protect its patent, Mason said Global Networks isn’t interested in stronger tactics. No litigation is planned.

“The last thing we want to be is onerous,” he said. “Everybody loses in that case.”

Global Networks has arrangements with several newspaper networks, including the National Newspaper Network and Newspapers First. The company, which had $200,000 in revenues last year, is also pursuing other agencies, networks and companies. The company is also well capitalized and ready for the future, with no debt and a stock price that’s jumped from 10 cents a share before the patent was granted to 44 cents a share.