Lixtor
Encyclopedia
Lixtor is an Internet-auction
Online auction business model
The online auction business model is one in which participants bid for products and services over the Internet. The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved.Several types of online auctions are...

 website operating in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

 since 2005, as a free alternative to currently dominant "paid" online-trading website in New Zealand, TradeMe
TradeMe
Trade Me is the largest Internet-auction website operating in New Zealand. Managed by Trade Me Ltd the site was founded in 1999 by New Zealand entrepreneurSam Morgan who sold it to Fairfax in 2006 for NZ$700 million...

.

Lixtor's business model is substantially different from its rival site TradeMe as it tries to operate its business on advertising revenue rather than charging users on listing fees and success fee.

Controversy

On November 06, 2008 the National Business Review
National Business Review
The National Business Review is a weekly New Zealand newspaper aimed at the business sector. The paper is owned by Barry Colman who also publishes the Grocers Review and several other small trade publications....

reported on an article that Lixtor has been legally-threatened by TradeMe over "copyright infringement" on their "Privacy Policy" and "Terms and Conditions". However, Lixtor stated that it was rather a false-flagged operation carried out by TradeMe to "intimidate" Lixtor because TradeMe was threatened by Lixtor's "no fee" business model.

Following this dispute with TradeMe, Lixtor listed their auction site for sale on TradeMe on November 17, 2008, with the starting bid $100,000,000. The listing was listed with the option to support Plunket by rounding up the success fee. However the auction was disabled by the TradeMe administrators hours after the auction.

Nonetheless, Lixtor re-listed the auction minutes after their listing was disabled by TradeMe moderators, but this second listing was also removed hours later. No more listings were reported after this, possibly due to TradeMe's policy to suspend the "suspicious" members.

On November 20, 2008, a community newspaper The Aucklander also reported that TradeMe's lawyers asked Lixtor to remove their "Terms and Conditions"

On February 3, 2009, in the wake of the emerging New Zealand copyright law Section 92a, New Zealand Creative Freedom Foundation published an article. It was stated that Lixtor vs. TradeMe case is a good example of how the new section 92a in the New Zealand copyright law could be "misused", if passed.
The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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