Affinity Founders Sue GfK MRI

A suit filed in the US by Tom Robinson and Marianne Grogan, the founders of recently closed media measurement specialist Affinity, claims GfK Mediamark Research & Intelligence (GfK MRI) stole trade secrets while in the midst of acquisition talks, and proceeded to drive their firm out of business.

In 2005, Robinson and Grogan launched VISTA, which they say was the first syndicated magazine ad effectiveness research service in the US. The pair say their product then dominated the market for more than three years, after which GfK MRI showed an interest in acquiring their company.

In a complaint filed in the Southern District Court of New York, the pair say that GfK MRI then used confidential business information divulged as part of due diligence during these negotiations, to develop its own syndicated ad effectiveness research product, Starch Syndicated, which they describe as a 'carbon copy' of their own service.

The filing asserts that GfK MRI aggressively marketed its service to publishers and advertisers, in direct competition with VISTA, and then developed a new product called Ad Measure, which they claim GfK MRI sold 'on the cheap', or even at no cost, threatening VISTA's viability.

Robinson and Grogan say this forced them to develop their own total magazine audience research product, the American Magazine Study (AMS), to compete with GfK's products; and that GfK MRI responded with a scheme to sell its two products at a price which would reduce VISTA revenues - the funding source behind AMS - pushing their firm out of business last month and eliminating GfK MRI's competition.

Affinity is seeking compensatory and punitive damages for breach of contract, theft of trade secrets, unfair competition, and other damages from the lawsuit.

GfK MRI is online at www.gfkmri.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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