Gator.com in Truce Over Banner Ads

Gator.com will stop selling online advertisements that block out the ads displayed on other Web sites while the company tries to resolve the complaints of a major trade group.

The controversy centers on a software program that superimposes banner ads sold by Gator over the ads of other Web sites.

The Interactive Advertising Bureau, the largest trade group in the $8.2-billion-per-year online advertising industry, had threatened to file a complaint with the Federal Trade Commission unless Gator stopped selling its “Companion Pop-Up Banner” ads.”

Redwood City, Calif.-based Gator filed a federal lawsuit against the group in August to protect its right to sell the ads.

As part of the truce, Gator said it won’t sell any more of the pop-up ads for the rest of this year while it honors existing contracts. Gator plans to introduce a new version of the service early next year.

In the meantime, Gator’s lawsuit will be put on hold.