TECHNOLOGY SPECTATOR: Groupon gets scooped

The brothers behind the Scoopon and CatchOfTheDay websites have won a substantial victory over US giant Groupon, as Australia's online deals sector continues to soar.

Technology Spectator

Groupon, Scoopon, swapyourdeals.com.au

The brains behind Scoopon and CatchOfTheDay – brothers Gabby and Hezi Leibovich – can't seem to put a foot wrong at the moment and after selling a substantial stake in the two online retail channels to James Packer in May for around $80 million, the brothers have managed to bring US daily deals heavyweight Groupon to its knees. At the time of the sale the one big unknown hanging over their head was just how the legal dispute with Groupon, over the Groupon.com.au domain name and trademark, was going to pan out. Well the issue has reportedly been resolved with the Leibovich's coming out on top again. The brothers were ahead of the curve from the very start when they registered the domain name in Australia before the US company and also registered Groupon Pty Limited as their business. Groupon, which had to launch in Australia under the name Stardeals.com.au, had tried everything to unsuccessfully force the brothers into relinquishing the name, including the legal action which evidently was not producing the desired result. The brothers were unwilling to play ball unless there was a full and fair offer for the entire Scoopon business, so it's likely that Groupon has given them a substantial payout to win back the domain name and local trademark. Earlier this year Groupon's CEO Andrew Mason said he was willing to pay $US286,000 to the brothers. That offer was rejected so one would assume that the final settlement figure is higher than that.