Submitted by: kirkland on Thursday October 23rd, 2003 at 02:01 PM EST

In an effort to improve its corporate reputation, adware company Gator has launched a legal offensive to divorce its name from the hated term "spyware"--and so far its strategy is paying off.

In response to a libel lawsuit, an antispyware company has settled with Gator and pulled Web pages critical of the company, its practices and its software. And other spyware foes are getting the message.

"There is this feeling out there that they won the lawsuit, and people are starting to get scared," said one employee of a spyware-removal company, who asked not to be named. "We haven't been sued, but we've heard that other companies are being sued for saying this and that, so we've changed our language" on the company Web site.

Gator often distributes its application by bundling it with popular free software like Kazaa and other peer-to-peer programs. When downloaded, Gator's application serves pop-up and pop-under ads to people while they're surfing the Web or when they visit specific sites. Ads can be keyed to sites so that a pitch for low mortgage rates, say, can appear when a surfer visits a rival financial company's site.

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