So, I mentioned before that we were working on a partnership for the usage of historical data on our site (a couple people asked), but it turns out that potential partnership was actually a legal trap.
A little over a week back, we searched for a source of historical app data to share with you guys on developeranalytics.com. There were a couple options, but most had some fairly strict rules. Adonomics.com, on the other hand, had the following in their FAQ:
Can I use your data?
Sure, but it's Facebook's data, not mine. I'm just making it pretty. You can download the raw data in a CSV format, which every spreadsheet or stats application understands. All I ask in return is that you include a link back to this site.
We did just that to fill in gaps in the historical data presented to developers about their apps, and shortly after posting on this forum to ask for some opinions of the site, we were contacted by Jesse Farmer and Lee Levenson of Adonomics with a very kind e-mail:
Hello Charles,
Nice work on Developer Analytics. It's very well put together.
We noticed, however, that you've been downloading our data twice daily
(once around midnight CST and once around noon CST). As per our FAQ
we don't want people using the data we collect for commercial purposes
or to build a competing service without our permission. If you're
interested in licensing the data or working with us in any other way
please contact Lee Lorenzen, who is CC'd on this email.
We'd like to find a way to work together.
Cheers,
Jesse
CTO, Adonomics
When we received this email, the Adonomics FAQ page was changed to:
Can I use your data?
Yes, if you're using it for non-commercial and non-competitive purposes and include a link back to Adonomics. If you want to use the data commercially contact sales@adonomics.com.
We immediately stopped pulling data from Adonomics.com and informed them we had promptly done so. We then started pulling data directly scraped from Facebook's public about pages (yes, that's how you do it:P)
I then spoke with Lee Levenson over the phone, and asked him what he would like us to do. He presented several options, and one of the options I presented was "worst case scenario, we can just remove all the data from our site." He said that would work, but asked us to send him an email with a list of what we intended on doing or not doing with the information because he was concerned about setting a precedent for other sites to download their information, and that he wanted to make a public press release about a partnership between us to prevent that. Excited about a potential partnership, we responded as follows:
Hi Lee,
So we just wrapped up our discussion, and this is essentially a brief summary:
Our Intentions:
-create a welcoming community for social network application developers
-provide a forum for communication and collaboration to help new and old application developers develop their ventures
-build a central hub where developers can review and assess different companies (ad networks, app companies, etc.)
-keep developers up to date with facebook related news
What we don't intend on doing:
-selling historical application statistics to third parties
-make monetary valuations of apps based on historical application statistics
As you can see, we are travelling in a drastically different direction than Adonomics is, and I doubt we will be clashing anytime in the future.
I personally don't know what exactly you guys want us to do or not do, but if you just send us a list of things you are concerned about, I'm sure that would make things easier to settle upon.
All we are currently using historical data for is the little chart that we show in the app details. Nowhere else on our site is any of the historical data presented.
I know you are concerned about this setting a precedent for others to repeat, but we would be very happy to release something publicly about a partnership between us. It would be a great way to establish a precedent for licensing procedures for this data as well, which I believe would be advantageous for you guys. We would be very happy to include a link on our site, as well as refer our users to adonomics for your valuations.
Let me know what you guys want to happen,
-Charles
We received no response for a while, until I sent a reminder email:
Hey Lee,
Just wanted to make sure you received my last e-mail.
Let us know what you guys want us to do.
-Charles
upon which we finally received a response:
Charles,
I’ve been under the weather with the flu since last week and am just getting to my e-mail today.
I will be working tomorrow and will check in with the team and see what next steps make sense.
Thanks,
Lee
We waited for a response, while Jesse Farmer posted several encouraging words in our threads about our website, until we received another email from Lee:
Charles,
I am feeling better – thanks for asking.
WRT the new site design for our “Next Generation Adonomics?? site, I’m glad you liked it. J
While competitive fever (vs. flu fever) may be one motivating factor for upgrading our look-and-feel, the style of the upgrade was influenced by http://developers.facebook.com/get_started.php and http://joyent.com/developers/facebook/a … celerator/ and our desire to make it easy for the 200,000+ developers who use these sites to navigate the Adonomics site. I assume you had similar goals and stylistic influences when you designed your site.
I think where we come down WRT your extraction from our site of our organized lists of Facebook stats via a massive download of every single application’s data (which we never intended to allow or even think that someone might try to do) and you’re lack of any public acknowledgement of Adonomics as the source of this data once you had done it, is that we are willing to create a license for you that covers this past copyright infringement and allow you to continue to use the data for your site. The alternative of enforcing our rights via litigation is not one we want to pursue at this time, but we reserve that right if we can’t come to terms WRT a license.
The rate card for licensing our historical facebook app data for a company your size is a fee of $800 per month with a minimum term of one year and with six month pre-payment requirement ($4,800). The monthly fee is based on your company’s monthly revenue, as shown below:
Monthly Revenue Monthly Data License Fee
============= ===================
$0 to $50,000 $800 (six-month pre-pay, minimum one year term)
$50,000 to $250,000 $1,600
$250,000 to $1,000,000 $3,200
$1,000,000 to $5,000,000 $6,400
$5,000,000+ $10,000
Our data is not available anywhere else in such a straightforward form, structure, look and feel. This data is also important for any site that wishes to launch with a claim of being a Next Generation Adonomics site and to give the complete historical picture of Facebook apps. It is also not in our interest to see potential competitors surface, so I feel even offering this rate card without non-compete clauses is quite reasonable. Lastly, it is not enough to just purge your site of our data now because you have gained initial traction using it. Obviously, if we wanted to launch a book selling site, if we took all of Amazon’s reviews and launched with them on our site built up our user base and then later removed them after we had enough of our own, it would still be unfair to Amazon.
Assuming you sign a license on these terms before the end of this month, we will make the terms and start date retroactive to when you took the data and we will give you a signed release from any future claims related to this matter.
Please let me know how you wish to proceed.
Thanks,
Lee
This was the first time we actually received a direct request to take down the information, and we have immediately done so out of respect for their wishes. Technically we're under no obligation to do so given the permissions given to us by Adonomics' ToS at the time we pulled the information, but as developers we understand the effort that goes into stuff like this and do not wish to disrespect theirs.
On the other hand, from the tone of their most recent email it seems as if they wish to take legal action against us, even though we promptly removed information that their original ToS permitted us to use as soon as they informed us they wished that we take it down. To me, this seems very unfair, and very intentional. Their delays in responding to us let us continue to "gain traction" as stated in the email while their historical information was still available on the site (when we would have immediately taken it down had they asked us previously).
We feel we've been very cooperative in this whole situation, and we hope that this post will put everything in the open to the developer community. We're 3 developers who don't want to get sued even after being cooperative and prompt. I'm not sure what they could sue us for, but we don't have the resources to defend ourselves even if the lawsuit were to be frivolous.
We've responded with:
Hey Lee,
Unfortunately we don't have any resources to draw upon to pay licensing fees of that magnitude (you know our situation). When we used the data from your site, your Terms of Service explicitly permitted us to do so (we have sufficient evidence to prove that it did). When the Adonomics ToS was changed, we immediately stopped pulling data from your site. Out of respect for your wishes, we spoke to you previously over the phone about what you wanted us to do. The lack of our public acknowledgement of Adonomics as the source of the data was due to us waiting on your response so we would know how to make that acknowledgement occur since you stated in previous conversations that we might reach an agreement in the near future. Therefore we left the information on the site for that period of time until further instruction.
The site has not yet been publicly launched, nor would I consider "beta testers" drawn from the developer testing forum to be "traction."
We have been very cooperative with you, and we even asked if you would like us to remove the content from our site on previous occasions. We received no response to that question until now. I believe that we have handled this situation as quickly and as cooperatively as possible. If you would like, we would be willing to make a public statement that we used information from Adonomics for the time period the information was available.
All Adonomics historical data will be removed from the site within 24 hours per your request.
Thank you, and glad to hear you're feeling better.
-Charles
PS. If there's any legal folk out there, do please let us know what you think.
I understand the need that these big companies have for keeping competition at bay, but I would have hoped it would be done so by building out a better product (capitalism at work?) as opposed to trapping us into committing to a monthly licensing fee that we can't afford. I feel like something unjust has been done to us, kind of like when the source code to one of my other projects was stolen a while back (which was why I got out of the facebook app game for a while in the first place).
The reason why I'm putting all this in the open is that I'm scared of what a company with the backing of Altura Ventures can do against us without other developers behind us. That being said, we have that advanced stats feature ready for you guys to check out, including app user overlap and app user affinity, if this ever blows over. I know I mentioned earlier we'd have it out today, but we're going to have to push that down at least til tonight or tomorrow morning due to this stuff.
Last edited by charles (2008-02-14 19:35:40)
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No one is going to take legal action over an $800 subscription. It would be more costly than the reward.
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too lazy to read..
can anyone summarize in 3 words?
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jet_metal wrote:
too lazy to read..
can anyone summarize in 3 words?
Adonomics being unreasonable
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I'm not sure any business men like Lee would be kept away from their email for that long by the flu.....(stall tactic...maybe?).
Also, all of this data actually belongs to Facebook, and it's each apps respective developers.
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Charles -
Regardless of the original situation, my advice would be that you're damaging your case by airing this grievance in public. $800 for a license is pretty reasonable -- and the ratio of what they want to charge vs. your revenue seemed reasonable as well. I suggest you remove this post, and continue to work with them to try to come to an agreement, rather than fight a losing battle on a forum here. There was no finality in the tone of Lee's e-mail, like "this is our last conversation about this, see you in court".
My $.02
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Hi Charles, Don't sign anything from Adonomics without talking to a lawyer first whatever you do!
Do you have an LLC formed? If not I would do that and also try to get some business liability insurance. You can put it on credit cards, a P2P loan at lendingclub.com or just begging friends/family.
Last edited by andy (2008-02-14 21:03:13)
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$800 bucks a month ? maybe they based their subscription price using their app evaluation formula.
Seriously, it's not as if anyone will care if they can't see past 2 weeks anyway
Last edited by savageguy123 (2008-02-14 21:04:41)
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Sort of unrelated, but do you mean Lee Lorenzen?
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I also agree. There really doesn't seem to be anything unreasonable and Lee seems to actually respond... although the delay does seem to be a tactic used quite often in the business world, which allows the person to come up with the greatest solution while leaving the other people hanging. I suggest to try and talk some more with Lee, good things can come out of it... but for a partnership to work you must communicate.
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jheard wrote:
jet_metal wrote:
too lazy to read..
can anyone summarize in 3 words?Adonomics being unreasonable
right on dude!
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IANAL but IMO (based off of what I have read), they're trying to push you around.
You should look into the law about public information stored in databases. Basically what it comes down to is whether or not their database is a "creative expression." Which, since they are just scraping data from a site and ordering it in a simple manner, I would argue it is not.
You should talk to a lawyer.
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akardell wrote:
Charles -
Regardless of the original situation, my advice would be that you're damaging your case by airing this grievance in public. $800 for a license is pretty reasonable -- and the ratio of what they want to charge vs. your revenue seemed reasonable as well. I suggest you remove this post, and continue to work with them to try to come to an agreement, rather than fight a losing battle on a forum here. There was no finality in the tone of Lee's e-mail, like "this is our last conversation about this, see you in court".
My $.02
I agree that $800/month for a license is very reasonable (assuming they have the right to resell Facebook's data in the first place), but the pinch comes with "6-month prepay" and "1-year term minimum" so essentially he was telling us "give us $4800 right now, and another $4800 6 months from now." If we were a funded company, or even if we actually had some revenue (i.e. if we were at the $50,000/mo end of the $0-$50,000 range) but currently we are at the $0 end of the range (we haven't even publicly launched yet). I actually told Lee our situation over the phone, that we were non-funded and had little to no resources. Had they said something like "we know you have nothing right now, but put a link to our site, and once you gain some traction pay us $XXX" versus "we know you have nothing, and this should put a nail in the coffin" we would be happy to oblige. Heck if they had told us to flat out take it down because their original ToS was incorrect, we would oblige too (and have).
If we were to pay the $4800 license fee, I would have to get the money from my mom (yeah, recent grads, we're quite literally in that situation). The net assets of our LLC is exactly $50 (the minimum deposit to open a business bank account).
I'm tending towards your side on this, although I'm really worried that if we keep this private (versus fighting a losing battle on a forum) is that we'll just end up fighting a losing battle in private, which is even worse because we have no resources to draw upon and they likely have big connections.
To be honest, had this come about in more of a straight forward fashion (i.e. them telling us flat out to remove the info, versus them telling us "hold on a sec" and then forcing a licensing fee on us and implying a threat that they'll come after us for "gaining traction" during the time they told us to "hold on") I would be far more hopeful for a private agreement, but there's nothing more we can give them. We immediately removed all the Adonomics historical data from the site, but they still want more. What else is there to give?!
Last edited by charles (2008-02-14 23:36:38)
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cyMall wrote:
but for a partnership to work you must communicate.
I wholeheartedly agree. There were a couple e-mails in our exchange that I left out since they were essentially more of me saying "are you there? you feeling better? what do you want us to do?" to no avail. I just feel really weird that they would toss something out there like "let's work together" and all of a sudden "pay us $800/mo whether or not you use our data."
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andy wrote:
Hi Charles, Don't sign anything from Adonomics without talking to a lawyer first whatever you do!
Do you have an LLC formed? If not I would do that and also try to get some business liability insurance. You can put it on credit cards, a P2P loan at lendingclub.com or just begging friends/family.
We do have an LLC formed (it's the company mentioned in our Terms of Service) so I guess we have some protection there. It has about $50 in the bank (our initial investment:P). I don't have any money to my name (aside from next month's rent that I got from my roommate and my parents) but I'm sure a good lawyer can extract a pint of blood or two from me anyway.
I'll look into this business liability insurance stuff though.
Last edited by charles (2008-02-14 22:05:53)
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sourcecode wrote:
Sort of unrelated, but do you mean Lee Lorenzen?
Yes, I must have swapped the "e" for an "o." Never used his last name before.
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Awesome, so they changed the ToS, now that is acting a Matt Dunbar. ![]()
I hate non-professionals like that, some biggies are really un-professional, say cubics, and if someone wants to develop a sincere community, they try to put there shoes.
Charles, I do not think they will go for any legal action sort of, that is, if they have balls. I may sound extremist, but un-professional people do not deserve a straight talk.
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Hi Charles,
It sounds like their original TOS didn't expressly prevent what you did, in fact they admitted that the data was scraped from facebook and that they did not own the data. The fact that you have a copy of their original terms is good. Google "The Ninth Circuit douglas terms". Basically the court stated "a revised contract is merely an offer and does not bind the parties until accepted." They do not have a legal standing unless they notified you of the changes to their TOS and you accepted the changes.
If I was you I would email any facebook engineers you know, or use the developer email address, and ask *facebook* for permission to use the data, or ask if they can provide you with historical data directly. What you're doing is *good for facebook*, and good for the development community, so I don't see why they wouldn't give you permission to use it.
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davew wrote:
Hi Charles,
It sounds like their original TOS didn't expressly prevent what you did, in fact they admitted that the data was scraped from facebook and that they did not own the data. The fact that you have a copy of their original terms is good. Google "The Ninth Circuit douglas terms". Basically the court stated "a revised contract is merely an offer and does not bind the parties until accepted." They do not have a legal standing unless they notified you of the changes to their TOS and you accepted the changes.
If I was you I would email any facebook engineers you know, or use the developer email address, and ask *facebook* for permission to use the data, or ask if they can provide you with historical data directly. What you're doing is *good for facebook*, and good for the development community, so I don't see why they wouldn't give you permission to use it.
Hey Dave, thanks for the sound advice. I actually know some guys at Facebook right now (I actually was accepted to Harvard, but declined admission to go to Berkeley due to Harvard's crazy $55k/year student budget, but a bunch of my friends are over there). That is a great idea.
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To everyone,
I'm just going to post the last reply we made to charles. This was made before we saw he created this thread.
Charles,
Would you be able to accrue the liability and pay it when you have at least $100K in the bank? Or, pay it via a small equity stake in your company?
I hear your points but I want to settle this in a way that maintains the integrity of our price list.
Thanks,
Lee
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Charles, if you want to reply to adonomics, ask them to provide a legally binding agreement stating:
[1] they own the data
[2] they have written permission from facebook to resell the data - require proof, including a contact name and number at facebook that can confirm their legal standing.
[3] state their rates
[4] that adonomics will be held liable if facebook deems that the data is not owned by adonomics
Have them send you the legal documents *by registered mail, with delivery confirmation*. (None of this email stuff...)
Then contact facebook and have them confirm that adonomics has the legal right to resell the data. Always have legal documents in writing, signed by the parties involved. Do not agree to anything by email.
Last edited by davew (2008-02-14 23:27:48)
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Dude dont worry.Legal stuff isnt like in movies.Theres tons of layers before this hits actual courts.Looks to me like they're trying to slow you down to launch a similar product lol.You have a copy of their initial TOS.There is no legal basis for this.Screw them.this will be nice free publicity for you when it hits mainstream blogs.Hang in there.
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wow ... THIS is the kind of nasty business practice that could bring down Adonomics due to developer backlash.
I think you need to contact facebook to get the real legal story regarding their price list.
Rob
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anatolyl wrote:
you made a mistake pushing a competing product
I don't agree with this. I think that great things come from the creation of competition. If not from us, from Adonomics in response to us.
and scraping adonomics data.
that's stupid
I agree on this one. Just a note, we didn't "scrape" their data. Their data was/is available as CSV for download. We just downloaded the CSV from the links provided, and imported them directly into the DB. No scraping necessary. Not only that, but we only did it because it was permitted in their ToS. Had we known they would pull a ToS switch on us and then try locking us into a licensing agreement (whether we used their data or not) we never would have done it.
Definitely stupid.
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