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LAWSUIT AGAINST AP DISMISSED IN APPEALS COURT

By Staff
Publication: Editor & Publisher
Date: Monday, June 28 1999
A federal appeals court has upheld the dismissal of the AD/SAT delivery company's lawsuit against The Associated Press.

AD/SAT failed to prove the AP monopolizes the electronic delivery of newspaper advertising, ruled the 2nd U.S. Circuit Court of Appeals.

The appeals panel found that AP's conduct should not be deterred nor punished and that previous rulings clarified such activity, reported The Associated Press.

The lawsuit was first dismissed by U.S. District Judge Peter K. Leisure in 1996, reasoning other competitors were in the market and advertisers were developing their own electronic delivery systems.

The AP's AdSEND service first appeared in September 1994, using satellites to deliver advertising, ready for pagination, to newspapers in a matter of minutes.

Daniel R. Shulman, a lawyer for AD/SAT, said the business closed its doors after 10 years when the 1996 ruling went against it.

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