U.S. Bankruptcy Judge Martin Glenn of the Southern District of New York has approved a stipulation between bankrupt bookseller Borders Group Inc. ("Borders") and email marketer Next Jump Inc. ("Next Jump") that will require Next Jump, a former marketing partner of Borders, to stop emailing Borders' customers and remove Borders' trademarks from its website and email blasts.
Borders filed for Chapter 11 in February after more than 40 years in business, and won approval in July to liquidate its assets. Borders had a prior agreement with Next Jump to operate its Bordersrewardsperks.com website. But according to an August 31 adversary suit filed by Borders, following the bankruptcy filing and Borders' termination of their agreement, Next Jump used its access to Borders' customer lists to try and redirect them to Next Jump's own site, OO.com. Borders alleged in its Complaint and related motion for a temporary restraining order and preliminary injunction that Next Jump's actions were causing it irreparable harm, by interfering with Borders' attempts to sell off its intellectual property assets. The stipulation entered by the Court on September 6, 2011 requires Next Jump to disable the Bordersrewardsperks.com site, stop using Borders' trademarks, return any Borders customer personally identifiable information in its possession, and purge that data from its systems (including by removing those individuals who signed up as members of OO.com following redirect from the Borders site). The parties will also work together to draft a notice to customers that will be sent via a one-time email and posted on the OO.com and Nextjump.com sites. The stipulation can be downloaded from the Court's website (login required). The case is Borders, Inc. v. Next Jump, Inc., Adv. Proc. No. 11-92567(MG).